Chapter 7 - Accounting Standards Flashcards
What are the four principal objectives of the IFRS foundation.
Develop a single set of high quality reporting standards
Promote the use of the standards
Take account of a range of types of entity
Promote and facilitate adoption of IFRS standards through convergence with national accounting standards
What is the accruals basis?
The effect of transactions and other events recognised when they occur, not as cash is received or paid.
What is going concern?
The financial statements are prepared on the basis that an entity will continue in operation for the foreseeable future.
The IFRS framework describes the quantitive charetierstcs of financial statements as being…
- understandability
- relevance
- reliability and
- comparability
The IFRS framework sets out the statement of financial position (balance sheet) as comprising …
Assets, Liabilities and equities
Assets are…
Resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity
Liabilities are…
A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits
Equity is…
Residual interest in the assets of the entity after deducting all its liabilities.
In regards to IFRS 4 requirements, insurers need to make extensive disclosures about what
Risk management policy,
interest and credit risk information and terms and conditions of insurance contracts with the impact on future cash flows
In regards to IFRS 4 requirements, insurance liabilities must be kept in the insurers balance sheet until when
They are discharged, cancelled or expire
In regards to IFRS 4, insurance liabilities must be included in the balance sheet without offsetting them against…?
Related reinsurance assets
In regards to IFRS 4 requirements, there should be a test for the adequacy of…
Recognised insurance liabilities
In regards to IFRS 4 requirements, there should be an impairment test for…
Reinsurance assets
IFRS financial statements consist of what
- a balance sheet
- income statement
- a cash flow statement
- notes, including a summary of the significant accounting policies
The FRC is the UKs independent regulator responsible for…
Promoting confidence in corporate reporting and governance. The FRC’s mission is to promote high quality corporate governance and reporting to foster investment.
