Accounting Principles and Procedures Flashcards
1
Q
What is the most important IFRS for valuers?
A
IFRS 13 – fair value basis
2
Q
What basis are company accounts prepared on?
A
Accruals basis
3
Q
How are leases reflected on balance sheets?
A
IFRS 16 – shown as both asset or liability where appropriate
4
Q
What is missing from the VOA business plan you would expect to see in a surveying company business plan?
A
Marketing
5
Q
What is liquidity ratio?
A
Liquidity ratios are what creditors (and sometimes debtors) use to work out if a company can repay creditors from the total cash they have available. The higher the liquidity ratio is for that company, the more liquid their assets are and the more able they’ll be to pay off short-term debts.
