AAA - Revision Cards Flashcards
IAS 24 - Related Parties
A related party is a person or entity related to the entity that is preparing its financial statements.
Transactions = Material by Nature
A person or close member of that persons family is related if:
- Control/Joint Control of entity
- Significant influence of entity
- Key management personnel
Disclosures should be made of transaction amounts, outstanding balances, allowance for doubtful debts and any irrecoverable debts.
IAS 32 Financial Instruments
IFRS 9 Financial Instruments
FI classified as debt if contractual obligation to deliver cash or other asset.
FI classified as equity if no such arrangement.
Financial Assets measured at:
- Amortised Cost
- FV through other comprehensive income.
- FV through profit and loss.
Financial Liabilities measured at:
- FV through profit and loss.
IAS 36 Impairment of Assets
Measured by comparing the carrying amount of the asset with the recoverable amount.
If the carrying amount is greater than recoverable amount , the asset is impaired.
IAS 37 Provisions, Contingent Liabilities and Contingent Asset
Provisions:
Should be recognised when there is a present obligation as a result of past events which is probably and reliably measured.
Recognised at best estimate at the year end.
Contingent Liabilities:
A possible obligation arising from past events.
Should be disclosed unless the possibility of economic outflow is remote.
Contingent Asset:
A possible asset that arises from past events. Disclosed if probable and recognised if virtually certain.
IAS 38 Intangible Assets
Intangible asset should be recognised if it can be identified, controlled by the entity, will generate future economic benefits and reliably measured.
Amortised over their useful lives. If life is indefinite should be reviewed annually for impairment.
R&D:
Research costs expenses to PnL
Development costs capitalised.
IAS40 Investment Properties
Property/Land held to earn rental income for or capital gain.
Recognises using the cost model or fair value model.
FV Model:
Revalue to FV each year with the gain or loss being posted to PnL, no depreciation.
IFRS5 NCA held for sale & Discontinued operations
Held for sale if:
Seeking a buyer
Available for immediate sale
Likely to be sold
Expected within a year
Measured at lower of carrying amount and the FV less cost to sell and classified as a current asset, and no longer depreciated.
IFRS8 Operating Segments
Disclosure Only!
Sales greater than 10% of revenue
Profit or loss is 10% or greater if total
It’s assets are 10% of combined assets
IFRS15 Revenue from Contracts
If a performance obligation is satisfied over time, then revenue is recognised based on the progress of the performance obligation.
If performance is not satisfied over time, entity must determine at which point customer obtains control.
IFRS16 Leases (Right of Use Asset)
Initially recognised at cost and measured at cost less accumulated depreciation and impairment losses.
Lease liability is measured at the present value of the lease payments.
Carrying amount of the lease liability is increased by the interest charge which is also recorded in the PnL and cash payments reduce the carrying amount.
