IAS Flashcards
IAS - Inventories
IAS 2
Items sold in the ordinary course of business
Valued at the lower of cost and estimated selling price less selling costs (NRV) for each item
IAS - Acc policies, changes in estimates and errors
IAS 8
Acc policies should be appropriate and relevant, consistently applied and disclosed
changes in estimates are taken to SPL eg changes in depn
IAS - Events after the reporting period
IAS 10
Events between the reporting date and date of approval of FS
Adjusting = provide evidence of situation existing at reporting date.
non= do not provide evidence at reporting date eg share issue after reporting date
IAS - PPE
16
IAS - Income tax
IAS 12
Def tax = on temp diff between carrying amount and tax base of Asses / Lib
if tax base is higher than CA = def tax asset
if CA is higher than tax base = def tax liab
IAS - Employee benefits
IAS 19
Defined contribution scheme: no further obligations exist to contribute further funds to pension scheme. Recong annual cost of pension contribution in PL
Defined benefit scheme: Net interest component charged to PL`
IAS 21 - The effects of changes in forex - Rules in groups
Translate assets and liabilities at closing rate
translate incomes, expenses and OCI at average rate
exchange gains and losses arise on retranslation of :
- goodwill
- opening net assets and profits
Current year exchange gains/losses is recorded in OCI
IAS 24 - Related Party
Definition of related party
- Relationship of control or significant influence
- entities under control
- directors
must disclose related party transactions, outstanding balances (eg receivables) and write offs
hedge accounting
- must be formally documented at inception
- must be regularly reviewed to ensure it meets the effectiveness criteria
- FV hedge - takes changes in FV of hedged items and hedging intrument to profit or loss (unless the hedged items is an investment in equity measured at FVOCI)
Cashflow hedging - take changes in FV of hedging instrument to OCI (any excess FV movement is taken to profit or loss)
IAS 34 Interim financial reporting
- Interim reports are not mandatory but are recommended.
- If prepared, interim reports should include:
- Condensed statement of financial position
- Condensed statement of profit or loss
- Condensed statement of changes in equity
- selected explanatory notes
IFRS 1 First time adoption of international financial reporting standards
- When adopting IFRS standards for the first time, an opening SFP must be produced at the date of transition in which the entity must:
- Recognise assets and liabilities in accordance with IFRS standards
- Derecognise assets and liabilites that do not comply with IFRS standards
- classify assets in accordance with IFRS
- Gains and losses arising in accordance wi
