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17 Cards in this Set

  • Front
  • Back

Major sources of financial reporting regulation in Aus (4)

The Corporations Act

Australian Accounting Stds / Intl Financial Reporting Stds

The Conceptual Framework

ASX Listing Rules

Corp Act requires prep of financial reports for all ... (4)

Disclosing Entities

Public Cos

Large proprietary cos

Registered schemes

All entities required to prepare financial statements in accordance with Corp Act was apply which standards? (4)

AASB 101 Presentation of Financial Statements

AASB 107 Statement of Cash Flows

AASB 108 Accounting Policies

AASB 1048 Interpretation and Application of Standards

What is the Conceptual Framework's purpose? (4)

Provide coherent set of principles, assists:

standard setters to produce consistent standards

preparers deal with issues not addressed by a standard

auditors in forming as opinion on compliance

users to interpret co accounts

Objectives of financial reporting (3)

To provide financial info about the reporting entity

that is useful to present and potential equity investors lenders and other creditors

in making decisions about providing resources to entity

Fundamental qualitative characteristics (2)


Faithful representation

Enhancing qualitative characteristics (4)





Define Assets (3)

A resource controlled by the entity

as a result of past events

and from which future economic benefits are expected to flow to the entity

Define Liabilities (3)

A present obligation of the entity

Arising from past events

the settlement of which is expected to result in an outflow from the entity of resrouces embodying economic benefits

Define Equity (4)

The residual interests in the assets of the entity after deducting all its liabilities

Equity = Assets - Liabilities

Increases as a result of profitable operations

influenced by the measurement system adopted for A&L and the concepts of capital and capital maintenance

Define income (3)

increases in economic benefits during the accounting period

in the form of inflows or enhancements of assets or decreases of liabilities

that result in increases in equity, other than those relating to contributions from equity partners

Define expenses (3)

decreases in economic benefits during the accounting period

in the form of outflows or depletions of assets or incurrences of liabilities

that result in decreases in equity other than those relating to distributions to equity partners

Asset recognition

Probability of future economic benefits and reliable measurement

Liability recognition

Probability of an outflow and reliable measurement required

Income recognition

Probability of decrease in future economic benefits and reliable measurement required

Expense recognition

Probability of decrease in future economic benefits and reliable measurement required

According to the conceptual framework, what is measurement (2)

the process of determining the monetary amounts

at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement