International Financial Reporting Standards

Question 1

Governing bodies

Answer 1

International Accounting Standards Board (IASB): Issues IFRS

Question 2

Revenue Recognition for sale of goods

Answer 2

when all five criteria are met:

1. significant risks and rewards of ownership are transferred to buyer
2. entity does not retain continuing managerial involvement or control over goods
3. amount of revenue can be measured reliably
4. probable that economic benefits will flow to the entity
5. costs incurred can be measured reliably

Question 3

1st time IFRS adopters

Answer 3

may elect to use fair value as deemed cost for any individual item of property, plant and equipment

Question 4

Error Correction

Answer 4

Error is corrected by restating the comparative amounts for prior periods.

Question 5

Change in Accounting Principle

Answer 5

a voluntary change in accounting method is given retrospective application by applying the policy as if it had always been applied

opening balance of equity is adjusted for the earliest period presented

if impracticable to determine effects of change, the change may be applied on a prospective basis

change in estimate is accounted for on a prospective basis in the period of change

Question 6

Inventory

Answer 6

LIFO not permissible
Specific ID required for inventory that is not interchangeable or is produces for specific projects
FIFO & Weighted-Average are acceptable

Question 7

Fixed Asset Categories

Answer 7

PP&E, Investment Property, Intangible Assets, Biological Assets