CFAS: PAS 1 Flashcards
refers to the comparability of financial statements of the same entity
intra-comparability (horizontal or inter-period)
refers to the comparability of financial statements between different entities
inter-comparability (dimensional)
terminology used in pas1 is suitable for
profit-oriented entities
structured representation of an entity’s financial position and results of its operations
financial statements
end product of the financial reporting process and the means by which the information gathered and processed is periodically communicated to users
financial statements
those intended to meet the needs of users who are not in the position to require an entity to prepare reports tailored to their particular information needs
general purpose financial statements
cater to most of the common needs of a wide range of external isers
general purpose financial statements
to provide information about the financial position, financial performance, and cash flows of an entity that is used to a wide range of users
primary objective
to show the results of managements stewardship over the entity’s resources
secondary objective
faithfully representing the effects of transactions and other events
fair presentation
refers to the accounting principles and other financial reporting requirements prescribed by the govn regulatory body
relevant regulatory framework
accounting principles prescribed by a regulatory body
regulatory accounting principles
estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale
net realizable value
net amount that an entity expects to realize from the sale of inventory
net realizable value
reflects the price at which an orderly transaction to sell the same inventory in the principal (most advantageous) market
fair value
