8 Other standards Flashcards
What are accounting policies as per IAS 8?
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statement
What does IAS 8 require?
Requires an entity to select and apply appropriate accounting policies to ensure that the information in the statements is relevant in decision making and faithfully presents the performance and position
How are changes in accounting policy’s treated?
Applied retrospectively
Restate comparatives
Restate relevant brought forward balances
How should a change in accounting estimate be treated?
Applied prospectively from current period onwards
Disclose if impact material
How are errors treated as per IAS 8?
Applied retrospectively amending error
Restate affected comparatives
Restate relevant brought forward balances
What is the definition of fair value? (IFRS 13)
Fair value is the price that would be received to sell an asset or paid to transfer a liability in a orderly transaction between market participants
What is level 1 in IFRS 13?
Quoted prices in active markets for identical items (most reliable evidence of fair value)
What is level 2 of IFRS 13?
Observable inputs other than level 1 - similar items in active markets or identical items in inactive markets (adjustment necessary to reach fair value)
What is level 3 of IFRS 13?
Unobservable inputs based upon best information available
How is inventories valued?
Lower of cost or net realisable value
What is net realisable value?
Expected selling price less expected costs to sell
What is a biological asset?
Living plant or animal
What is agriculture produce?
Produce harvest from a biological asset
How are biological assets recognised?
At fair value less costs to sell
How is biological assets recognised at year end?
Revalue to fair value less costs to sell
Gain or loss in SPL
