Events After The Reporting Period Flashcards
Under what IAS is events after the reporting period
IAS 10
What is an adjusting event?
Provide evidence of conditions that existed at the reporting date and financial statements are adjusted to reflect the new information
What is a non adjusting event
Conditions that arose after the reporting date and disclose in a he notes
Under what IAS are accounting policies, estimates and errors?
IAS 8
What are accounting policies?
Specific principles, based, conventions rules and practices applied by and entity
When should an entity change an accounting policy
Only when required by IFRS
Results in information providing more reliable and relevant information
How should changes from new or revised IFRS
Follow transition provisions
How should voluntary changes be accounted for
When an entity changes an accounting policy is shall apply the change retrospectively
Restate as though the change had always been applied
An additional set of competitive figures are required
How should they be disclosed
Nature of change in accounting policy
Reason why the new policy provides reliable and more reclamation information
Amount of adjustment in each period
When may an estimate need changing
When the circumstances the estimate was based on change as a result of new information
How are accounting estimates accounted for
Accounted for prospectively
Adjust current year and apply in future years
How should accounting estimates be disclosed
Nature of the change
Amount of impact
Estimate of future impact
How should prior period errors be accounted for?
Should be corrected retrospectively
How should prior period errors be disclosed
Nature of error
Amount of correction
