Regulatory Environment Flashcards
What does IFRS stand for? What is there purpose?
What are 2 attributes?
International financial reporting standards
To harmonise financial practices
Only deals with material, not retrospective
Who sets up the IFRS?
The IASB
What is the step process of setting up an IFRS?(5)
EPPEF
Establish consultative group
Project steering committee set up
Publish discussion document
Exposure draft
Final IFRS issued
What is the organisation structure for IFRS?
Foundation
IASB
Interpretations
Advisory
What does the foundation level do?(3)
Appoint members
Promote work
Review budgets and strategies
IASB
What does it stand for?
What is their role?(4)
International accounting standards board
Develop IFRS
Prepare and publish IFRS and exposure drafts
Withdraw IFRS
Final interpretation
What is advisory councils role?(2)
Advice to IASB on priorities
Communicate views
What is the interpretations committees role?(2)
Review and clarify
What does IOSCO stand for?
International organisation of securities commissions
What do the IOSCO regulate?
Who do they observe?
Who do they work with to do what?
World securities market
IFRS interpretations committee
IASB to promote improvement of standards which can be used by listed companies abroad
What is the GAAP?
Generally accepted accounting principles
What does the conceptual framework strive for?
What is it not?
What does it give?
Consistency
An accounting standard
Guidance
What does the conceptual framework cover?
Objectives of financial statements
Qualitative characteristics
Financial statements and reporting entity
Definition of elements of financial statements
Recognition and derecognition of elements of fs
Measurement of elements of financial statements
Presentation and disclosure
Concepts of capital and capital management
Why conceptual frameworks?
Provide useful information to a wide range of users in making economic decisions
What are the types qualitative characteristics of conceptual framework?
Fundatmental and enhancing
What are the fundamental characteristics of the conceptual framework?
Relevance and faithfulness
What are the enhancing characteristics of the conceptual framework?
Comparability
Verifiability
Timelines
Understandability
Financial statements and reporting entity
What information should the financial statements provide?
What assumption are financial statements prepared under?
Economic resources of reporting entity
Claims against entity
Changes to those resources
Claims that meet the definitions of the elements of the financial statements
A going concern
What is a break up basis?
What is there no?
Assets accounted at sale price
Non current
What are the 5 elements reported on?
Assets liabilities equity income and expense
