Conceptual Framework

Question 1

IAS 37

Answer 1

• Probable payment to be rec’d, we recognise as a provision
• We do not recognise an asset until it is certain to be rec’d

Question 2

Qualitative Characteristics

Answer 2

Fundamental
* Relevance (Predictive, Confirmatory, Materiality)
* Faithful Representation (Neutral, complete, free from error)

Enhancing
* Compariability
* Verifiability
* Timeliness
* Understandbility

Question 3

Elements of Financial Statements

Answer 3

• Assets
• Liability
• Equity
• Income
• Expenses

Question 4

Assets

Answer 4

An economic resource, controlled by an entity, and arising from a past event)

Question 5

Liability

Answer 5

A present obligation, to transfer an economic rescource

Question 6

Equity

Answer 6

Difference between assets and liability. Residual interest.

Question 7

Income

Answer 7

An increase in assets or decrease in liability that result in an increase to equity (IFRS 15 - REVENUE)

Question 8

Expenses

Answer 8

Decrease in assets (IAS 16 Depreciation, IAS 18 Amotization IAS 26 Impairment) and increase in liabilites that result in a decrease to equity

Question 9

Recognition

Answer 9

Must meet fundamental qualitiive characterisitics (Relevance and Faithful representation)

Question 10

Measurement types

Answer 10

Historical or Current Value

Question 11

Historical Cost Measurement

Answer 11

Derived from the historical price of the transaction or event

Question 12

Current Value (types)

Answer 12

• FV
• Cost in Use
• Fulfilment Value
• Current Cost