IFRS - 2 Flashcards
IFRS and GAAP are very similar in _________________
accounting for cash
_________________ is the only standard that discusses issues specifically related to cash
IAS No. 1 (revised), “Presentation of Financial Statements,”
Fraud triangle internationally
Applicable to all international countries
Fraud worldwide
Nearly have of companies have been victims to fraud in the two-year period
FASB announced that it intends to _______________
introduce more principles-based standards
Definition for cash equivalents
is the same under IFRS
Internal control procedures related to cash_______
are the same under IFRS
Cash and Cash equivalents under IFRS
are listed together
Cash (IFRS)
Comprised of cash on hand and demand deposits
Cash equivalents
Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value
Under proposed new standards for financial statements
Companies would not be allowed to combine cash equivalents with cash
IFRS: Restricted Cash
Restricted cash funds may be reported as a current or non-current asset depending on the circumstances.
Cash Equivalents under IFRS
May be required to be reported seperately from cash in the future
IFRS requires that loans and receivables be accounted for at________________
amortized cost, adjusted for allowances for doubtful accounts
adjusted for estimated loss provisions
Allowances sometimes known as _________ under IFRS
provisions
Entry to record Allowance under IFRS:
Bad Debt Expense XXX
Allowance for Doubtful Accounts XXXX
Picemeal approach to fair value
- disclosure of fair value information in the notes.
- the fair value option, which permits, but does not require, companies to record some types of financial instruments at fair values in the financial statements.
Factoring transaction: IFRS
Combination of focus on risks and rewards & loss of control
Permits partial derecognition
Factoring transaction: GAAP
Loss of control: primary criterion
does not permit partial derecognition
Estimated uncollectible accounts: IFRS
the entry to record estimated uncollected accounts is the same as GAAP.
Fair value option
The fair value option requires that all types of financial instruments be recorded at fair value.
Defintion for plant assets under both IFRS and GAAP
the same
Interest costs under IFRS and GAAP
interest costs during construction are capitalized