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I. IFRS > IFRS > Flashcards

IFRS Flashcards

IFRS NINJA

1
Q

International Accounting Standards Borad (IASB)

A
  • Issues IFRS
  • Most Authoritative
  • 1st place MGMT looks for guidance
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2
Q

IASB Framework

A
  • Helps Develop Standards
  • NOT a standard
  • DOESNT SUPERSED ANY STANDARD AUTHORITY
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3
Q

Objective of IFRS Framework

A
  • Provide users W/ Information
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4
Q

IFRS assumes Entity uses what basis of Accounting?

A
  • Accrual
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5
Q

Qualitative Characteristics

A
  • Relevance
  • Faithful Representation
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6
Q

Relevance

(Qualitative Characteristic)

A
  • Makes a Difference to user
  • Predictive value- Predicts Future
  • Confirmatory Value - Evaluates past
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7
Q

Faithful Representation

(Qualitative Characteristic)

A
  • Complete
  • Neutral
  • Free from Error
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8
Q

Enhancing Characteristics

A
  • Comparability
  • Understandability
  • Verifiability
  • Timeliness
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9
Q

Comparability

(Enhancing Characterisitics)

A
  • Allows users to compare different items at different periods
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10
Q

Understandability

A
  • Easy to Understand
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11
Q

Verifiability

A
  • Different people would reach same conclusion
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12
Q

Timeliness

A
  • Information is available in time to make decision
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13
Q

Pervasive Contraint of IFRS

A
  • Cost vs. Benefit
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14
Q

Reporting Elements

A
  • Asset
  • Liability
  • Equity
  • Income
  • Expense
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15
Q

Criteria for Recognition on IFRS Financial Statements

A
  • Probable future economic benefit
  • Can be measured reliably
    • Cost Recovery Method required if value or outcome not be measured reliably
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16
Q

IFRS vs. GAAP (1)

A
  • Comparative FS required
  • No completed contract method
  • No LIFO
  • Statement of Comprehensive Income Required
  • Statement Changes in Equity Required
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17
Q

IFRS vs. GAAP (2)

A
  • Income instead of Rev.
    • Gains not displayed seperately
    • Losses same as expense, but ARE displayed seperate
  • Profit instead of Net Income
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18
Q

IFRS vs. GAAP (3)

A
  • Contracts- Customer Controls assets before Delivery?
    • IFRS– Performance Obligation classification Mandatory
    • GAAP– Optional
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19
Q

IFRS Transitioning (1)

A
  • Date of Transition is 1st reporting period that entity produces full comparative financial statements using IFRS
    • If IFRS was implemented June 2010 for use in the Decemeber 31, 2010 FS, then the Date of Transition is actually January 1, 2009 for a full year of comparative statements
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20
Q

IFRS Transitioning (2)

A
  • For PPE, the Fair Value Method is the most efficieent for converting assets to IFRS
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21
Q

Adjustments made for adopting IFRS get made where?

A
  • The entitys Retained Earnings or Equity
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22
Q

IFRS Current Assets

A
  • Stays the same
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23
Q

IFRS Current Liabilities

A
  • can be refinanced into a no-current liability if agreement is executed before B/S date
  • GAAP ONLY REQUIRES INTENT, NOT EXECUTION
24
Q

Contingencies

A
  • Uncertain future events
25
Q

GAAP Contingent Liability

A
  • Probable, Reasonably Possilbe, or Remote
26
Q

IFRS Contingent Liability

A
  • If “Probable” and “Measurable”
    • Classified as Provision
    • Payment is uncertain in Timing or amount
27
Q

IFRS records Financial Assets using which 3 methods

A
  • Amortized Cost
  • Fair Value through OCI
  • Fair Value through Profit or Loss
28
Q

Amortized Cost

A
  • Objective: Collect Cash Flows
  • Uses Effective Interest Method
29
Q

Fair Value through OCI

A
  • Objective: Sell Financial Assets
  • Gain or Loss recognized in OCI
30
Q

Fair Value through Profit or Loss

A
  • Objective: Everything Else
  • Gain or Loss recognized in Profit or Loss
31
Q

Deferred Taxes IFRS

A
  • Uses Liability Method
    • All Deferred Tax Liabilities must be reported
    • Only “probable” Deferred Tax Assets can be reported
32
Q

Deferred Tax Assets and Liabilities are

A
  • Non-current to the Statement of Financial position
  • ONLY netted if they are related to same country/taxing authority
    • EX: China Deferred Tax Assets cant offset Japan Deferred tax liabilities
33
Q

IFRS Tax Rates

A
  • Enacted Tax Rate or Substantially Enacted Tax rate
34
Q

GAAP Tax Rate

A
  • Enacted Tax Rate Only
35
Q

IFRS Income Statement

A
  • Income
  • Finance Costs
  • Tax Expense
  • Discontinued OPs
  • Profit/loss
  • Non-Controlling interest in Profit/Loss
  • Net Profit/Loss attributable to Equity
36
Q

IFRS Comprehensive Income

Two Statements Allowed

A
  • Income Statement
  • Statement of Comprehensive INcome
37
Q

Investment in Subsidiaries are Valued At

A
  • Cost
  • Fair Value
  • Equity Method
38
Q

PP&E Valuation IFRS

A
  • Recorded at Cost
39
Q

PP & E Valued using one of two options called

A
  • Cost Model
  • Revaluation Model
40
Q

PP& E Cost Model

A
  • Asset Carried at Cost - (Accumulated Depreciation and Impairment Loss)
41
Q

Revaluation Model

A
  • Asset is adjusted to Fair Value minus Accumulated Depreciation
  • Increases in value from the adjustment reported in current period = Other Comprehensive Income
  • Decreases in value from adjustment = Expense
    *
42
Q

Revaluation Model Must

A
  • Asset must be able to be reliably measured
  • be applied to whole calss of assets, not just one
  • No guidance on how often assets should be revalued under IFRS
43
Q

Investment Property IFRS

A
  • Initially recorded at Cost
  • Does NOT include property used in course of business
44
Q

Investment Property IFRS Revalued using

A
  • Fair Value Model
    • Property is revalued to Fair Value
    • Profit/Loss is recorded in current period on Income statement
45
Q

Investment Profit/Loss

A
  • Recorded on Income Statment
46
Q

PP&E Profit/Loss

A
  • Recorded on Other Comprehensive Income OCI
47
Q

Invesment Property IFRS using Cost Model

A
  • Cost Model
    • Carried at (Cost - Accum. Depreciation)
    • Fair Value must still be disclosed in the notes to the Financial Statements
48
Q

Operating Leases can be recorded as

A
  • Investment property if measured at Fair Value
  • All other Investment property must use Fair Value Method if one asset uses it
    *
49
Q

Intangible Assets valued using one of two options

A
  • Cost Model
  • Revaluation Model
50
Q

Intangible Assets Cost Model

A
  • Asset Carried at Cost less Accumulated Depreciation and Impairment Loss
51
Q

Intangible Asset Revaluation Model

A
  • Asset is adjusted to Fair Value, less Accumulated Depreciation
  • Increases in value from adjustment = Other Comprehensive Income
  • Decreases in value from adjustment = expense
52
Q

Intangible Asset Revaluation Model must

A
  • Reliably measured
  • applied to whole class of assets, not just one
  • no guidance on how often assets should be revalued under IFRS
53
Q

Internally generated Goodwill

A
  • Not Recognized
54
Q

Intangible Assets Amortization

A
  • Intangible Asset has Finite Life
    • Amortized over Useful Life
  • Intangible Asset has Indefinite LIfe
    • NOT AMORTIZED
    • Tested for Impariment at Reported Date
55
Q

Leases IFRS

A
  • if Substantial Risks of ownership have passed to the LEssee, then the Lease must be accounted as Finance Lease
56
Q

Pension Defiend Benefit Plans IFRS

A
  • Project-Unite-Credit-Method calculated the PV of the defined benefit obligation
57
Q

Statement of Cash FLows IFRS

A
  • Interest expense or Finance Costs can be classified as either Operating or Financing
    • ​Once a class is chosen, ALL future costs must be classified there
  • Significant non-cash Transactions
    • Must be included in notes to Financial Statements

I. IFRS (1 decks)

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