Regulations Of Accounting For Corporations

Question 0

What are accounting standards?

Answer 0

Legal guidelines on specific accounting matters they influence the way general financial reports are made.

Question 1

What are reporting entities?

Examples

Answer 1

Those reasonably expected to have users that depend on financial reports for useful information in making and evaluating decisions about scarce resources.
Eg NAB, Catholic ed office, AFL.

Question 2

The financial reporting council is…

Answer 2

An Australian statutory body with oversight over AASB providing broad strategic direction to AASB

Question 3

What is the AASB?

Answer 3

Committed to developing in the publics interest a set of accounting standards requiring transparent and comparable information in general purpose financial statements.

Question 4

What is the IASB?

Answer 4

Goal is to provide the worlds integrated capital markets with a common language for financial reporting.

Question 5

What does ASIC stand for? And what do they do?

Answer 5

Australian securities and investment commission.

Australia’s corporate markets and financial services regulator.

Question 6

The asx is…

Answer 6

A public company providing a market place for the buying and selling of shares in public companies and other financial services.

Question 7

Purpose of the AASB framework is to…

Answer 7

Identify and describe the concepts that underlie the preparation and presentation of financial statements for external users

Question 8

What are the 4 key qualitative concepts described in the framework?

Answer 8

Reliability
Relevance
Comparability
Understandability

Question 9

An asset is …

Answer 9

Resource controlled by the entity. From past with future economic benefit.

Question 10

Liabilities are defined as…

Answer 10

Present obligation of the entity because of last events expected to result in outflow of the business.

Question 11

Equity is…

Answer 11

The residual interest in the assets of the emir it after deducting all the liabilities.

Question 12

Expenses are…

Answer 12

Decreases in economic benefit that result in decrease in equity

Question 13

Income is …

Answer 13

Increases in economic benefit
Form
Of inflow of asset or cash inflow

Question 14

Revenue is…

Answer 14

The gross inflow of economic benefit when those inflow increase equity

Question 15

How do you value an asset?

Answer 15

Historical cost, current cost, settlement value, present value and fair value.

Question 16

Brief description of historical cost

Answer 16

First price purchased at

Question 17

Brief description of current cost

Answer 17

Amount of money that would be receive for an item at a certain time. Eg after 6 months

Question 18

Brief description of realisable (settlement) value.

Answer 18

Amount of exchangeable assets obtainable by selling the asset.

Question 19

Brief description of present value.

Answer 19

Discounted net cash flows or savings in outflows that are expect to occur through assets use.