Accounting Standards And Insurnace Company Accounts

Question 1

What type of companies are required to prepare the accounts following IFRS standards?

Answer 1

Quoted companies (shares are on stock exchange)

Question 2

What are the IFRS standards?

Answer 2

A single set of high quality global accounting standards

Question 3

What does the IFRS financial statements consist of?

Answer 3

A balance sheet
N income statement
A cash flow statement
Notes

Question 4

What is a small entity?

Answer 4

Turnover less than £10.2m
Total assets less than £5.1M
50 employees or less
(Any two)

Question 5

What is accrual accounting?

Answer 5

Treats income as revenue when it is earned rather than when the cash is received

Question 6

What is a micro entity?

Answer 6

Turnover less than 632,000
Assets less than 316,000
10 employees or less

Question 7

When can a UK company depart from IFRS standards?

Answer 7

When they believe it does not reflect a true picture of their company

Question 8

Who is the UKs main independent regulator of corporate financial reporting?

Answer 8

Financial reporting council (FRC)

Question 9

Which countries have to use IFRS?

Answer 9

UK and EU