semi finals Flashcards
-level of measurement uncertainty may affect
faithful representation
- arise when a measure cannot be determined directly
measurement uncertainty
- arises when there is uncertainty about the amount or timing
outcome uncertainty
arises when it is uncertain Whether an asset or a liability exist
existence uncertainty
-consistently using same measurement bases for same items
comparability
more different measurement bases are used
Understandablity
-results in measures that can be independently corroborated eitheir directly or indirectly
verifiability
sorting of assets, liabilities, equity income
or expenses with similar nature
classification
- is a pervasive constraints
cost constraints
(6) complete set of financial statement
-statement of financial position
-statement of profit or loss and other comprehensive income
-statement of change in equity
-statement of cash flow
-comparative information
-additional statement of financial position
(8) general features of financial statement
- fair presentation and compliance with PFRS
- going concern
- accrual basis of accounting
- materiality and aggregation
- offsetting
- frequency of reporting
- comparative information
- consistency presentation
faithfully representing in the financial statement
fair presentation
fvoci
fair value through other comprehensive income
determined from the perspective of market participants
fair value
are costly implement and requires subjective assumption
value in use and fulfillment value
results in the same amount of measure for identical assets
current cost
total equity is not measured directly
measurement of equity
a measurement that cannot be observed directly
cash flow based measurement techniques
reflects the average amount within the entire range
statistical mean
middle amount within the range
statistical median
reflects the single most likely ultimate inflow from the asset
statistical mode
occurs when an asset and a liability with separate units of account
offsetting
specify whether an income or expenses that was previously recognized
standard
adding together of asset, liabilities, equity, income or expenses
aggregation
2 concept of capital
financial concept of capital
physical concept of capital
invested money or invested purchasing power
financial concept of capital
capital is regarded as the entity productive capacity
physical concept of capital
2 classification of income and expenses
profit or loss
other comprehensive income
concept of capital maintenance
financial capital maintenance
physical capital maintenance
under this concept, profit earned if the net asset at the end
financial capital maintenance
under this concept, profit earned if the entity productive capacity at the end
physical capital maintenance
designed to apply to a range of accounting models
conceptual framework
revaluation or statement of asset and liability results to increase or decrease in equity
capital maintenance adjustment
refers to the comparability of financial statement of the same entity
intra comparability
refers to the comparability of financial statement between different entities
inter comparability
structured representation of an entity’s financial position and results of its operations
financial statement
intended to meet the need of users
general purpose financial statement
shows distinction between current and non current assets
classified presentation
shows no distinction between current and non current items
unclassified presentation
responsible for an entity’s financial statement
management
shows the entity’s financial condition
statement of financial position
highlights an entity’s working capital
classified presentation
payable upon the demand of the lender
liabilities payable on demand
expenses are aggregated according to their nature
nature of expenses method
an entity’s classifies expenses according to their functions
function of expenses method
comprises items for income and expense
other comprehensive income
amount reclassified to profit or loss in the current period
reclassification adjustment
change in equity during a period resulting from transactions and other events
total comprehensive income
provides information in addition to those presented in the other financial statement
notes
comprises cash on hand and cash in bank
cash
short term, highly liquid investment
cash equivalent
include inflow (source) and outflow of cash and cash equivalent
cash flow
3 classification of cash flow
operating activities
investing activities
financing activities
affect profit or loss
operating activities
affect non current assets and other investment
investing activities
affect borrowing and equity
financing activities
involve the acquisition and disposal of non current assets
investing activities
affect entity’s equity capital and borrowing structure
financing activities
denominated in a foreign currency
cash flow
statement of cash flows
direct method
indirect method
shows each major class of gross cash receipts and cash gross cash payment
direct method
profit or loss is adjusted for the effects of non cash items
indirect method
arising from acquisition and disposal of subsidiaries or other business units resulting to loss
cash flows
18 statement of financial position
- property, plant, and equipment
- investment property
- intangible asset
- financial asset
- investment accounted for using the equity method
- biological asset
- inventories
- trade and other receivable
- cash and cash equivalent
- asset held for sale, including disposal groups
- trade and other payable
- provision
- financial liabilities
- current tax liabilities and current tax asset
- deferred tax liabilities and deferred tax asset
- liabilities included in disposal groups
- non- controlling interest
- issued capital and reserves attributable for owners of the parent
