Chapter 3 Flashcards
financial statements provide info about
assets, liab, equity, income and exp, contri by and distri to, and cash flows
complete set of FS
SFP, SCI, SCOE, SCF, Notes, Comparative info and SFP at beg of preceding period
SFP
assets, liab, equity
SCI
profit, loss, OCI
SCOE
profit, loss, OCI, distributions to and contributions from owners (balances)
SCF
inflows, outflows of cash and cash equivalents
NFS
relevant financial info-activities and basis of presentation, significant acco policies, info of PFRS/IFRS
retrospective (acco policy), errors discovered and reclassification of element
restatement of comparative prior period (RER)
principles, bases, conventions, rules, practices applied in preparing and presenting FS
IAS 8 (Accounting Policies, Changes in Accounting Policies and Errors)
hierarchy of interpretation
(1) Standard and (2) Company
Standard
PFRS/interpretation
judgment in developing its own
Company Judgment
requirements in PFRS dealing with same issues, def, recog, criteria & measurement concept in CF and most recent pronouncement of other bodies
Company Judgment
general features of FS
fair presentation & compliance with PFRS/IFRS, going concern, accrual basis of accounting, materiality and aggregation, offsetting, frequency of reporting, comparative info and consistency of presentation
PFRS includes:
PFRS, PAS, Interpretations of IFRIC, SIC and PIC
direct matching, systematic & rational allocation, expense recognition principle and revenue recognition principle
Accrual Basis
direct assoc between costs
Direct Matching
allocate the cost of asset
Systematic & Rational Allocation
(x) assets that do not provide probable future economic benefit
Expense Recognition Principle
recognized at the point of delivery of goods or services = result to inflow of benefits
Revenue Recognition Principle
threshold for recognition
Materiality
if non-disclosure would influence the decision/evaluation of the user; it depends on the size and nature
Materiality
it will call the attention of the user
Single Line Item
not considered significant; combined either in the face/notes
Aggregated with other items
its general rule is not allowed unless required/permitted by a Standard/Interpretation
Offsetting
net unrealized gain/loss
Financial Asset @ FV
net in gain/loss
Foreign Exchange Transaction
frequency of FS
annually
exception to the frequency of FS
changes in date prepared for a period of longer/shorter than 1 year
disclosed info need if frequency is not annually
fact and reaosn
if annually ay hindi mapipigilan and pagproduce ng iterim FS
True
it should be disclosed in respect of the preceding period
Comparative Info
exception of comparative info
IFRS permit/require otherwise
included in comparative info
comparative narrative and descriptive info = if revelant
if may retrospective adjustment, 3 SFP and needed:
end of current period, end of immediate prior period and beginning of the preceding period
3 SFP does not apply to entities applying:
PFRS/IFRS for SMEs and PFRS for Small Entities
same from period to period
Consistency
exception for consistency
change in nature at ang pinalit ay mas appropriate IFRS requires it
reclassification of comparative amounts:
nature, amount that is reclassified and reason
