Financial Statements of a Limited Company Flashcards
What does IAS 2 apply to?
all types of inventories except for the valuation of construction contracts and certain other specialist assets.
What should inventories be valued at?
Lower of cost and net realisable value
What is IAS 7 for?
Statement of cash flows
What does IAS 7 provide guidelines for?
Operating activities
Investing activities
Financial activities
What does cash comprise of?
cash on hand and demand deposits
What are cash equivalents
short term highly liquid investments that can easily be converted into cash
What is IAS 16 for?
Property, plant and equipment
What does IAS 16 affect?
SFP and SPL
What type of asset is PPE?
tangible assets held for use in the production or supply of goods and services which are expected to be used for more than one period
What is Depreciations?
allocation of the depreciable amount of an asset over its useful life
What is depreciable amount?
cost or the valuation of the asset less any residual value
What is useful life?
length of time or the number of units of production for which an asset is expected to be used
What do you include in the goodwill journal?
Consideration +
Non controlling interest +
Net assets acquired -
Impairment of goodwill -
What do you include in retained earnings journal?
Company 1 retained earnings
Retained earnings attributable from company 1
Impairment of goodwill
What is consideration?
Investment in the company
