IFRS Flashcards
IASC
International Accounting Standards Committee (1973-2001) replaced by IASB
IFRS Hierarchy
Level 1 - IFRSs and implementation guidance dealing with specific issues or similar ones
Level 2 - Definitions, recognition criteria and measurement concepts for A, L, income and expenses in the framework.
Level 3 - Pronouncements from other standard-setting bodies using a similar framework
Qualitative Characteristics of IASB Framework for the Preparation and Presentation of Financial Statements faithful representation includes:
Neutrality, completeness and free from error
IASB Framework assumptions
- Accrual method is used
2. Going Concern
Prudence
exercise of caution when making judgments under conditions of uncertainty
Prominent Financial Statement
IS
The IASB Framework
only 5 elements: assets, liabilities, equity, income, and expense
Income Statement Differences from US GAAP
- No requirements on reporting special items
2. Dividends per share required disclosure
Comprehensive Income Statement Differences from US GAAP
Permits revaluation of PPE thru OCI
Balance Sheet Differences from US GAAP
Comparative periods required
Shareholder’s equity Differences from US GAAP
Changes in owners’ equity must be presented in a separate statement (in US GAAP can be presented n notes)
Statement of Cash Flows Differences from US GAAP
More flexibility with placement of cash flows in IFRS
Capitalization
costs to acquired an asset are expensed over the life of the asset rather than in the period it was incurred.
Classifications in Statement of Financial Position
Current and non-current assets and liabilities
IFRS for SMEs Financial Statements does not disclose?
- EPS
2. Info by Segment
