Notes to the financial stmts

Question 1

Price level changes disclosure

Answer 1

are require by IFRS not by US

Question 2

constant dollars

Answer 2

measurements in the general price level as of specific date

Question 3

constant dollars

Answer 3

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

Question 4

IFRS Accounting policies requirements

Answer 4

JMI
Judgements and key assumptions
Measurement bases used for recognition
Information enabling an assestment

Question 5

What is including in illegal acts for companies

Answer 5

Ilegal contribuitions and brives

Question 6

Nominal dollars

Answer 6

measurements in the price level in effect in a transation date, not adj to inflation

Question 7

related party transaction disclosue

Answer 7

Nature of relationship
Description of all transt for the years presented
dollar amt of transt
AR from other parties

Question 8

1st note usually covers

Answer 8

summary of significant acct policies

Question 9

Monetary items

Answer 9

specific price of monetary items cannot change

Question 10

IFRS hyperinflactionary economies disclosure

Answer 10

impact of the inflation on the FS, required

Question 11

Purchasing power gain

Answer 11

gains during deflatiorionary times

Question 12

Futures maturities on borrowing for 5 yrs

Answer 12

must be disclose

Question 13

Development stage companies

Answer 13

have a diff disclosure reqrt as other comp

Question 14

Disclosures

Answer 14

. are and integral part of fin statements

• Are part of GAAP
• Provide info about assumptions and estimates
• Provide info that cannot be captured quantitatively

Question 15

Basic Disclosures

Answer 15

• Summary of significant Acct policies
• Related Party Transactions
• Liability disclosures
• Capital Structure
• Errors and irregularities
• Ilegal Acts

Question 16

MD&A

Answer 16

• Required narrative for publicly held firms
• includes a discussion about operations, liquidity and capital resources
• Forward looking info can be provided by mngt

Question 17

ASC topic 235

Answer 17

Req descpt of all significant acct policies in FS

Question 18

Average current cost

Answer 18

current cost at beg or yr+currt cost at ye /2

Question 19

COGS is restaed into avg current cost by

Answer 19

multiplying units sold x avg current cost during the yr

Question 20

Credit risk

Answer 20

the risk of loss due a particular borrower non pymt of loan

Question 21

consumer price index is used to

Answer 21

COMPUTE INFO ON A “constant dollar basis”

Question 22

Accounting Policies

Answer 22

should identify and describe an accounting principles and the methods of applying them

Question 23

Significant accounting policies

Answer 23

should disclose the criteria for determining which investments are treated as cash equivalents

Question 24

Disclosures about risk and uncertainty pertaining to concentration

Answer 24

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