Chapter 3 - Perform reporting and perf appraisal

Question 1

what is equity

Answer 1

the residual interest in the assets of the entity after deducting all of its liabilities.

What belongs to the owner after all liabilites have been settled

Question 2

OCI

Answer 2

Income and expenses recognised outside of the profit or loss

Question 3

IAS 1 - Disclosures

Answer 3

disclosures must be presented in systematic order;

• giving prominence to the most relevant areas
• grouping items measured in similar ways such as assets held at fair value
• Following the order in which items are presented in spl

Question 4

materiality and aggregation

Answer 4

item is material if its omission or misstatement could influence the economic decisions of users taken on the basis of FS

Material items should be presented separately

Question 5

AHFS

Answer 5

Lower of its Carrying value and NRV (FV - costs to sell)

stop charging depn

Question 6

discontinued ops

Answer 6

component of an entity that has either been disposed of or is classified as held for sale

• major line of business or geo area
• part of single coordinated plan to dispose of separate major line of business
• is a sub acquired exclusively with view to resale

Question 7

Change in acc policy

Answer 7

retrospective

restated RE eg

Question 8

change in acc estimate

Answer 8

prospective

Question 9

errors

Answer 9

retrospective

omissions from and misstatements in FS from failure to use or missue reliable info

eg incorrect identification of closing inventory