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18 Cards in this Set
- Front
- Back
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ISA 38 INTANGIBLE ASSETS |
- 'an identifiable non-monetary asset without physical substance' - The entity must have control and their must be reliable measurement of the cost - It will be recognised if it it's probable that future economic benefits can be attributable to the assets - Assets should be carried under cost models or revaluation model - Asset has a finite life and is amortised over its useful life |
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IAS 8 Accounting Policies, Changes in Accounting estimates and Errors |
- Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity when preparing financial statements |
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IAS 1 Presentation of Financial Statements |
- Sets out overall requirements inclusive structure, minimum requirements for their content and overriding concepts such as going concern - Requires a complete set of financial statements to compromise a statement of financial position, statement of comprehensive income, change in equity and statement of cash flow |
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IAS 16 Property, Plant and Equipment |
- PPE is measures at cost initial and subsequently measured at cost or revaluation model - Asset is depreciation at a depreciable amount is allocated on a systematic basis over its useful life |
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IAS 10 Events after the reporting period |
- Adjusting events: An event after the reporting period that provides further evidence if conditions that existed at the end of the reporting period - Non adjusting period: An event after the reporting period that is inductive of a condition that arise after the reporting period - Going concern issues: Statements are prepared in the knowledge that company will continue to operating in the next period |
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IAS 36 Impairment of assets |
-Ensures that assets are not carried at more than recoverable amount (higher) -Except goodwill some intangible asserts for which an annual impairment test is required |
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IFRS 5 Non-Curernt Assets Held for Sale and Discounted Operations |
-Assets held for sale are not depreciated -Measured at lower for carrying amount or fair value less cost of sale - Specific disclosure are also required for discounted operations and disposald of a non-current asset |
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IAS 17 LEASES |
-Classify finance or operating lease - Has there been substantial transfer of risk and rewards of ownership -Deprecation based on economic life/leasing agreement -Interest based on actuarial or sum of digits |
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IFRS 16 VS IAS 17 |
IAS 17 - Leases are classified as finance or operating - Cost of an operating lease are expenses through the income statement on a straight line basis IFRS 16 - Majority are treated as finance lease - lease is recognised as asset, and corresponding liability - Interest element of lease and asset depreciates The differentiation will provide more faithful representation of the financial position of the business Prevents practice of off balance sheet accounting |
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Disclosure required for IAS 37 |
- Carrying Amount - Additional provisions - Amount used (negative) - Unused amount (negative) Breif description (Accounting notes) |
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An Oneorous Contract |
A contract entered into with another party under which the unavoidable costs of fulfilling the contract will exceed revenue and compensation will be paid if contract isn't fulfilled Eg leased premises IAS 17 |
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Restructuring Provision |
A constructive obligation arises only when an entity has a detailed formal plan for the restructuring identifying at least: - The business - Principle locations affected - Functions/Employees who will be compensated for terminating their services - The expenditure that will be undertaken - When the plan will be implemented - Announced its main features |
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Contingent Liability (Disclosure) |
Should be disclosed is one or more o requirements aren't met - A possible obligation exists - An out flow of economic benefits is not probable -A reliable estimate of outflow connot be made |
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Contingent Asset (Disclosure) |
A possible asset that arises from past event who existence will be confirmed only be the occurrence of one or more uncertain future events not wholly within the control entity - Recognise only if virtually certain - If economic benefits are probable - If less than probable - no disclose |
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ISA 11 Construction Contract |
-Prescribe the accounting treatment of revenue and costs associated -Recognise a proportion of net income over the period of the contract using the % of completion method. Provided the overall result can be predicted reliably -Gross amount due/owed will be shown as an asset or liability |
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IAS 11- REVENUE |
-Fixed-price contract is a type of contract where the payment amount does not depend on resources used or time expended -Cost-plus contract is a contract where a contractor is paid for all of its allowed expenses, plus additional payment to allow for a profit |
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IAS 11 - COSTS |
-Costs relating directly to the contract -Attributable costs that can be reasonably allocated to a project -Any ‘other’ costs that can be charged by contract terms |
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IAS 11 - Determining stages of completion |
IncomeStatement -Expected results -Determine work certified -Calculate attributable revenue -Calculate attributable costs -Attributable profit or loss Statementof Financial Position - Calculate amount due from/to customers - Calculate trade receivables or payables |
