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9 Cards in this Set
- Front
- Back
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Income statement |
Provides details of income and expenses of an organisation |
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What is income? |
Increases in economic benefits during an accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity other than contributions from equity participants. |
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Expenses |
Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or inchrrebces of liabilities that result in decreases in equity other than those relating to equity participants |
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What is accrual accounting? |
Income is recognised when it is earned and expenses are recognised when they are incurred. I.e. revenue or expense is recognised on the date of the service or transaction, not when the cash is received. E.g. accrued wages, accrued electricity etc. |
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ALE? Prepayments |
Asset (expect the future economic benefit) |
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ALE? Income received in advance |
Liability (obligation that a service must take place in exchange for the money received) |
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ALE? Income receivable? |
Asset (expected future benefit) |
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According to the conceptual framework for financial reporting, an item meets the definition of an element if: |
a) It is probable that any future economic benefit with the item will flow to or from the entity b) the item has a cost that can be measured with reliability |
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Definition of 'Other comprehensive Income'? |
Items of income and expense (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by other Australian Accounting Standards |
