International accounting standards Flashcards
What is IAS 1
presentation of financial statements
What is IAS 2
Inventories
What is IAS 7
statement of cash flows
What is IAS 8
accounting policies, changes in accounting estimates & errors
What is IAS 10
events after the reporting period
What is IAS 16
property plant and equipment
What is IAS 18
revenue
What is IAS 36
impairment of assets
What is IAS 37
provisions, contingent liabilities and contingent assets
What is IAS 38
intangible assets
main facts for IAS 1- presentation of financial statements
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
Main facts for IAS 2 - inventories
inventory must be vaued at the lower of NRV and cost
Main facts for IAS 7- statement of cash flows
a cash flow statement must be included in a specific format as part of a companys financial statements
Main facts for IAS 80 accounting policies, changes in accounting estimates and errors
changes of policy can only occur
if it is required by an accounting standard
or if the change results in more accurate financial statements
Main facts for IAS 10- events after the reporting period
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
Main facts for IAS 16- property , plant and equipment
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
Main facts for IAS 18- revenue
financial transactions are recorded when legal titles passes between buyer and seller and not when the payment is made
Main facts for IAS 36- impairment of assets
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
Main facts for IAS 37- provisions, contingent liabilities and contingent assets
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
what is a provision
it is a liability of uncertain timing or amount. the uncertainty is what distinguishes a provision from liability such as payables and accruals.
what is a contingent liabaility
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.
what is a contingent asset
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.
Main facts for IAS 38- intangible assets
only purchased intangible assets awn be recognised in the financial statements so internally generated brand name or goodwill cannot be recognised
