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17 Cards in this Set
- Front
- Back
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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 |
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Corp Act requires prep of financial reports for all ... (4) |
Disclosing Entities Public Cos Large proprietary cos Registered schemes |
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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 |
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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 |
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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 |
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Fundamental qualitative characteristics (2) |
Relevance Faithful representation |
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Enhancing qualitative characteristics (4) |
Comparability Verifiability Timeliness Understandability |
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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 |
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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 |
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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 |
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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 |
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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 |
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Asset recognition |
Probability of future economic benefits and reliable measurement |
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Liability recognition |
Probability of an outflow and reliable measurement required |
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Income recognition |
Probability of decrease in future economic benefits and reliable measurement required |
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Expense recognition |
Probability of decrease in future economic benefits and reliable measurement required |
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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 |
