IFRS Flashcards
What is required under IFRS but NOT GAAP?
Going Concern
Comparative F/S are required
Statement of Comprehensive Income
Statement of Changes in Equity
What is Disallowed under IFRS
Completed Contract
LIFO
Extraordinary Items
What must the first IFRS Financial Statements contain?
Explicit and Unreserved statement that statements are in compliance with IFRS
What must the first Balance sheet recognize and not recognize?
All Assets and Liabilities required by IFRS and All Assets and Liabilities NOT permitted by IFRS.
Must be measured and classified as required by IFRS.
When transitioning from GAAP to IFRS what must be included in the Disclosures?
How the transition from GAAP to IFRS affects the financials
If costs exceeds the benefits of the financials.
Where and when must differences in the application of GAAP and IFRS be recognized?
As adjustments to Retained Earnings.
At the date of transition to IFRS.
What MUST the First IFRS Financial Statements include?
3 Statements of Financial Position 2 Statements of Comprehensive Income 2 Separate Income Statements 2 Statements of Cash Flows 2 Statements of changes in equity Related Notes
What categories must be disclosed in the Balance Sheet?
Current Assets Non-Current Assets Financial Liabilities Provisions Current & Deferred Tax Assets & Liabilities Equity Capital and Reserves Minority Interest Parent's Equity Holder issued capital & reserves
What sub categories are included in the Assets section under IFRS?
Current Assets -
Receivables, Inventories, Cash and Cash Equivalence and Trade and other Payables.
Non-Current Assets -
Property Plant and Equipment, Investment Property, Intangible assets, Financial Assets, Equity Method Investments, Biological Assets
Under IFRS how are expenses classified?
Nature (salaries, rent) or Function (COGS, Sales)
If the functional method is used where must expenses be reported?
Expenses by Nature must be disclosed In the Notes of the Financials
What are the reporting differences in statement of Changes in Equity for IFRS?
Both use Retained earnings but IFRS uses reserve for comprehensive income & stocks
Reservation surplus for PP&E, mineral resources & Intangibles
Share Capital replaces Common Stock
Preference shares replaces preferred shares (they have no maturity date). Premiums are called Share premium.
IFRS Differences in Statement of Cash Flows?
Overdrafts are Financing Activities
Interest and Dividends are Operating Activities
Non Cash Investing & Financing activities are reported in the Notes
What is the IFRS Difference in LCM?
Lower of Cost and Net relizable value
Replacement cost and Profit margin are ignored
