International accounting standards

Question 1

What is IAS 1

Answer 1

presentation of financial statements

Question 2

What is IAS 2

Answer 2

Inventories

Question 3

What is IAS 7

Answer 3

statement of cash flows

Question 4

What is IAS 8

Answer 4

accounting policies, changes in accounting estimates & errors

Question 5

What is IAS 10

Answer 5

events after the reporting period

Question 6

What is IAS 16

Answer 6

property plant and equipment

Question 7

What is IAS 18

Answer 7

revenue

Question 8

What is IAS 36

Answer 8

impairment of assets

Question 9

What is IAS 37

Answer 9

provisions, contingent liabilities and contingent assets

Question 10

What is IAS 38

Answer 10

intangible assets

Question 11

main facts for IAS 1- presentation of financial statements

Answer 11

the standards states that a company must prepare a complete set of financial statements that include
an income statement
a balance sheet
a statement of cash flows
changes in equity
a statement of accounting policy

Question 12

Main facts for IAS 2 - inventories

Answer 12

inventory must be vaued at the lower of NRV and cost

Question 13

Main facts for IAS 7- statement of cash flows

Answer 13

a cash flow statement must be included in a specific format as part of a companys financial statements

Question 14

Main facts for IAS 80 accounting policies, changes in accounting estimates and errors

Answer 14

changes of policy can only occur
if it is required by an accounting standard
or if the change results in more accurate financial statements

Question 15

Main facts for IAS 10- events after the reporting period

Answer 15

IAS 10 distinguishes between adjusting and non adjusting events
if the amounts involved are large then it is an adjusting event
these include things like tax liabilities, legal fees and large bad debts

Question 16

Main facts for IAS 16- property , plant and equipment

Answer 16

a company must show non current assets at cost minus depreciation or revaluation
depreciation must be charged on all non current assets except freehold land

Question 17

Main facts for IAS 18- revenue

Answer 17

financial transactions are recorded when legal titles passes between buyer and seller and not when the payment is made

Question 18

Main facts for IAS 36- impairment of assets

Answer 18

assets are shown in the balance sheet at no more than their value or recoverable amount
if their is an impairment loss the asset should be shown i the balance sheet as there recoverable amount and the impairment loss as an expense on the income statement

Question 19

Main facts for IAS 37- provisions, contingent liabilities and contingent assets

Answer 19

contingent liabilities should be only be disclosed in the notes the accepts ad not be shown in the financial statements
contingent assets should not be included in the financials statements as they may never be realised and therefore could be misleading
a provision is shown in as a liability in the balance sheet and must be explained in the notes to the accounts

Question 20

what is a provision

Answer 20

it is a liability of uncertain timing or amount. the uncertainty is what distinguishes a provision from liability such as payables and accruals.

Question 21

what is a contingent liabaility

Answer 21

it is a possible obligation that arises from past events and where existence will be confirmed only by the occurrence of one or more uncertain future events, not wholly within the entity’s control.

Question 22

what is a contingent asset

Answer 22

is a possible or probable asset that arises from past evens and whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within the entities control.

Question 23

Main facts for IAS 38- intangible assets

Answer 23

only purchased intangible assets awn be recognised in the financial statements so internally generated brand name or goodwill cannot be recognised