Notes to the financial stmts Flashcards
Price level changes disclosure
are require by IFRS not by US
constant dollars
measurements in the general price level as of specific date
constant dollars
measurements in the general price level as of specific date
NON monetary item are restated to the curr price level
Monetary items are NOT rstated
To/From ratio
IFRS Accounting policies requirements
JMI
Judgements and key assumptions
Measurement bases used for recognition
Information enabling an assestment
What is including in illegal acts for companies
Ilegal contribuitions and brives
Nominal dollars
measurements in the price level in effect in a transation date, not adj to inflation
related party transaction disclosue
Nature of relationship
Description of all transt for the years presented
dollar amt of transt
AR from other parties
1st note usually covers
summary of significant acct policies
Monetary items
specific price of monetary items cannot change
IFRS hyperinflactionary economies disclosure
impact of the inflation on the FS, required
Purchasing power gain
gains during deflatiorionary times
Futures maturities on borrowing for 5 yrs
must be disclose
Development stage companies
have a diff disclosure reqrt as other comp
Disclosures
. are and integral part of fin statements
- Are part of GAAP
- Provide info about assumptions and estimates
- Provide info that cannot be captured quantitatively
Basic Disclosures
- Summary of significant Acct policies
- Related Party Transactions
- Liability disclosures
- Capital Structure
- Errors and irregularities
- Ilegal Acts
MD&A
- Required narrative for publicly held firms
- includes a discussion about operations, liquidity and capital resources
- Forward looking info can be provided by mngt
ASC topic 235
Req descpt of all significant acct policies in FS
Average current cost
current cost at beg or yr+currt cost at ye /2
COGS is restaed into avg current cost by
multiplying units sold x avg current cost during the yr
Credit risk
the risk of loss due a particular borrower non pymt of loan
consumer price index is used to
COMPUTE INFO ON A “constant dollar basis”
Accounting Policies
should identify and describe an accounting principles and the methods of applying them
Significant accounting policies
should disclose the criteria for determining which investments are treated as cash equivalents
Disclosures about risk and uncertainty pertaining to concentration
should be disclose in the firms is vulnerable to a sever impact in a near term because of a concentration, it is reasonably possible the the impact will occur
