IAS Standards Flashcards
IAS 1 - Presentation of Financial Statements
*Specifies components of financial statements (e.g., Statement of Financial Position, Profit or Loss, Cash Flows).
*Requires fair presentation and compliance with IFRS.
IAS 2 - Inventories
*Inventories measured at the lower of cost and net realizable value (NRV).
*Cost includes purchase price, conversion costs, and other costs incurred to bring inventories to their current location and condition.
IAS 7 - Statement of Cash Flows
*Classifies cash flows into operating, investing, and financing activities.
*Direct or indirect method allowed for operating cash flows.
IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
*Requires consistency in applying accounting policies.
*Retrospective application for changes in policies or corrections of prior-period errors.
IAS 12 - Income Taxes
*Addresses current and deferred tax.
*Deferred tax arises from temporary differences between accounting and tax base of assets and liabilities.
IAS 16 - Property, Plant and Equipment
*PPE measured initially at cost and subsequently at cost or revaluation model.
*Depreciation charged systematically over the asset’s useful life.
IAS 19 - Employee Benefits
*Covers accounting for short-term benefits, pensions, and post-employment benefits.
*Requires actuarial valuation for defined benefit plans.
IAS 21 - The Effects of Changes in Foreign Exchange Rates
*Foreign currency transactions translated at exchange rates at the transaction date.
*Monetary items translated at closing rate; non-monetary items at historical rates.
IAS 23 - Borrowing Costs
*Borrowing costs directly attributable to acquiring or constructing qualifying assets are capitalized.
*Other borrowing costs are expensed.
IAS 33 - Earnings per Share (EPS)
*Basic EPS = Net profit attributable to ordinary shareholders ÷ Weighted average number of ordinary shares.
*Diluted EPS considers potential ordinary shares (e.g., convertible debt, options).
IAS 36 - Impairment of Assets
*Assets tested for impairment when there’s an indication of loss.
*Impairment = Carrying amount - Recoverable amount (higher of fair value less costs to sell or value in use).
IAS 37 - Provisions, Contingent Liabilities, and Contingent Assets
*Provisions recognized if there’s a present obligation (legal or constructive) and probable outflow of resources.
*Contingent liabilities disclosed but not recognized.
IAS 38 - Intangible Assets
*Intangibles recognized if they are identifiable, controlled by the entity, and expected to generate future economic benefits.
*Measured initially at cost; subsequent measurement can be cost or revaluation model.
