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17 Cards in this Set

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  • 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)

Relevance




Faithful representation

Enhancing qualitative characteristics (4)

Comparability




Verifiability




Timeliness




Understandability

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