Business Models And The ED/2019/7

Question 1

What is a business model in the context of integrated reporting?

Answer 1

Transforming inputs through its business activities into outputs and outcomes that aim to fulfill the business strategic purpose and aims and create value over the short, medium and long term

Question 2

What does the business model describe?

Answer 2

The entities activities, assets, configuration and the way the business adds value including the generation of its cash flows and its customers products and services

Question 3

Business model information is fundamental to investors because it provides what?

Answer 3

Context and understanding to other information in the annual report

Question 4

BM information can demonstrate a companies understanding of its key drivers which can create trust and reduce….

Answer 4

Risk

Question 5

There is an argument that business model should be presented outside the financial statements such as where?

Answer 5

Management commentary

Question 6

Investors need to know:

Answer 6

How the business model is responding to market trends

How the strategy supports key components of the business model

How management considers risks and opportunities across the business model

How money is made, value generated, and redistributed.

Question 7

Is the business model defined?

Answer 7

-no

Question 8

Which standards included reference to the business model?

Answer 8

Ias 2- commodity traders can use fair value to measure inventory as they purchase to sell and gain from fluctuations

IFRS 9-a classification and measurement of financial assets and liabilities based on entities business model

Ias 8- Segmental reporting defined a segment as as component of an entity that generates revenue and incurs expenses through business activities. An entity with more than one business model is likely to have more than one business segment

Ias 40 - owner occupied and investment property. Why they are held depends on business model