IASB Framework Flashcards
What elements are considered income under the Financial Accounting Standards Board (FASB) framework?
“Revenue” and “gains” as separate elements.
What will be the underlying conceptual support for future principles-based accounting standards?
Developing a common framework.
What are some of the purposes of the International Accounting Standards Board (IASB) framework?
Assist the Board to develop new International Accounting Standards (IASs); promote harmonization of standards; and assist, provide information to interested parties.
True or False: Income may be realized or unrealized.
True
What elements of the Financial Accounting Standards Board (FASB) framework are not included in the International Accounting Standards Board (IASB) framework?
Investments by owners, distributions to owners, comprehensive income, gains, losses.
True or False: The International Accounting Standards Board (IASB) framework should only apply to public companies, not private corporations.
False. The IASB Framework should apply to both public and private companies.
What are the five elements in the International Accounting Standards Board (IASB) framework?
- Assets;
- Liabilities;
- Equity;
- Income;
- Expenses.
When is an expense immediately recognized?
When no future economic benefit qualifying as an asset is present.
Does the International Accounting Standards Board (IASB) framework include losses for the term “expense?”
Yes, it includes such losses.
When do you recognize an element in the International Accounting Standards Board (IASB) framework?
When it is probable that there is a future economic benefit and the item has a cost or value that can be measured with reliability.
What is meant by a “reliable measurement?”
Measurement in which a reasonable estimate is made.
What are the underlying assumptions of the International Accounting Standards Board (IASB) framework?
The financial statements are prepared on the accrual basis and the entity is a going concern.
Are gains treated as separate elements?
No, they are not treated as separate elements.
What comprises income under the International Accounting Standards Board (IASB) framework?
Includes both revenues and gains.
