Ninja Notes: IFRS and Accounting changes Flashcards
(IFRS) If value or outcome cannot be measured reliably, what method should be used?
Cost Recovery Method
Adjustments made for adopting IFRS get made where?
In the Retained Earnings or equity.
What are the elements of IFRS?
Asset; Liability; Equity; Income; Expense
What is the Date of Transition for IFRS?
The first reporting period that an entity produces full comparative financial statements using IFRS.
For PP&E, what is the most efficient method for converting assets to IFRS?
Fair Value Method.
For an entity, where are adjustments for adopting IFRS made?
In retained earnings or equity.
Two methods for recording bonds on Stmt. of FP using IFRS?
1) Fair Value through Profit or Loss, and
2) Amortized Cost
How is FVTPL used for measuring bonds on IFRS?
> Liability revalued at the end of each period
> Gain or Loss recognized in period
How is Amortized Cost used for measuring bonds on IFRS?
Using Effective Interest Method.
Which tax rates do GAAP and IFRS use, respectively?
GAAP: Enacted tax rate only
IFRS: Enacted rate rate OR Substantially enacted tax rate.
What are the elements of the Income statement using IFRS?
> Income
Finance costs
Tax expense
Discontinued Ops.
Profit/Loss
Non-controlling interest in Profit/Loss
Net profit/loss attributable from equity
What are the two options for PP&E (originally recorded at cost?) and Intangible asset evaluation, under IFRS?
1) Cost Model
2) Revaluation Model
How is the Cost Model used for PP&E and Intangible asset evaluation under IFRS?
Asset is carried at Cost less accum. depr. and impairment loss.
How is the Revaluation Model used for PP&E and Intangible asset evaluation under IFRS?
> Asset is adjusted to FV, less accum. depr.
Increases in value from the adj. are reported in the curr. period as OCI
Decreases in value from the adj. are treated as an exp.
Asset must be reliably measured
Must be applied to whole class of assets, not just one asset
No guidance on how often assets should be revalued under IFRS
What are the two options for Investment Property evaluation under IFRS?
1) Fair value model
2) Cost Model
