Standards in Brief

Question 1

IAS 1

Presentation of Financial Statements.

Answer 1

Presentation of Financial Statements.
Overall Considerations:
**
* Prepared on Going Concern basis unless indications otherwise
* Accriual basis except for Cash Flow
* Consistent classification from one period to next.
* Material class of similar assets & items of dissimlar nature or fiunction present separately.
* Offsetting not permitted
* At least one year of comparative information.(unless impractical.)

Disclosures:Statment of compliance w. IFRS. Significant Accting policies, estimates, judgements and assumptions. Enables users to evaluate entity’s objectives, policies & process for managing capital.

Question 2

IAS 2

Inventories

Answer 2

**Definition: **Held for sale n ordinary course of business. Consumed in production process or rendering services process.

Exceptions: Biological Assets, Minerals & Mineral products, IFRS 9, Construction contracts.

Measurement: lower of cost & NRV.

**Cost: **Purchase+ tax+ transport+handling+cost of conversion.

**Excludes: **Abnormal waste, storage costs, admin oh. Selling costs and interest cosnts.

Question 3

IAS 7

Statement of Cashflows

Answer 3

Definition: Cash and cash equivalents. Maturity = 3mths or less. insignificant risk or change in value.

Components: Operating activities, Investing Activities & Financing Activities.

Direct Method & Indirect Method.

Disclosures: Cash not available for use by group. Reported gross. changes in liabilities arisingg from financing ativities.

Question 4

IAS 8

Acctihg Policies, Change in Estimates & Errors

Answer 4

Change in Estimate: Change Prospectively. in P&L in:

• Period of change and future periods if applicable.
  *** Disclose: **nature and amt of change effect in period. If affects future periods disclosure impractical

Change due to error: Retrospectively
* Restate all comparative amounts for prior periods in which error occured. Restate OB of SFP for earliest period presented.
* Disclosure: Disclose correction to each line affected & EPS,. Explain how error corrected.

Question 5

IAS 9

Question 6

IAS 10

Events after the reporting Period

Answer 6

Definition: occur between reporting date & date that FS authorised for issue.

Adjusting
* Legal Settlement confirming obligation @ reporting date.
* Bankruptcy of customer confirm loss @ rep date
* Sales of Inventory indicating NRV @ rep date
* Fraud/error @ rep date

Non-Adjusting
* Mergers & Acquisitons
* Fires
* Plans to discontinue
* Dividends

Question 7

IAS 12

Income Taxes

Answer 7

**Temporary Difference **: difference between tax base and carrying amount of asset/liabiity.

Tax Base of an Asset: Deductible against tax economic benefit.

**Tax base of a liabiilty: **Is its carrying amount. less deductible amts.

Deferred Tax liabilities: Recognised for all temporary differences.

Question 8

IAS 16

PPE

Question 9

IAS 19

Employee Benefit

Question 10

IAS 20

Government Grants

Question 11

IAS 21

Effects of Changes in Foreign Exchange Rates

Question 12

IAS 23

Borrowing Costs

Question 13

IAS 24

Related Party Disclousres

Answer 13

IAS 27

Question 14

IAS 27

Separate Financial Statements

Question 15

IAS 28

Investments in Associates and Joint Ventures

Question 16

IAS 32

Fin Instruments: Presentation

Question 17

IAS 33

EPS

Question 18

IAS 34

Interim Fin Reporting

Question 19

IAS 36

Impairment of Assets

Question 20

IAS 37

Provision, Contingent Liabilities & Contingent Assets

Question 21

Intangible Assets

IAS 38

Question 22

Investment Property

IAS 40

Question 23

Agriculture

IAS 41

Question 24

First time adoption of IFRS

IFRS 1

Question 25

Share based payment

IFRS 2

Question 26

Business Combinations

IFRS 3

Question 27

NCA Held for Sale & Discontinued Operations

IFRS 5

Answer 27

IFRS 7

Question 28

Fin Instuments Disclosures

IFRS 7

Question 29

Operating Segments

IFRS 8

Question 30

Financial Instruments

IFRS 9

Question 31

IFRS 9

Question 32

IFRS 9

Question 33

IFRS 10

Question 34

IFRS 10

Question 35

Joint Arrangements

IFRS 11

Question 36

Joint Arrangements

IFRS 11

Question 37

Disclosure of Interests in Other Entities

IFRS 12

Question 38

Disclosure of Interests in Other Entities

IFRS 12

Question 39

FV Measurement

IFRS 13

Question 40

FV Measurement

IFRS 13

Question 41

Revenue from Contracts w. Customers

IFRS 15

Question 42

Revenue from Contracts w. Customers

IFRS 15

Question 43

Revenue from Contracts w. Customers

IFRS 15

Question 44

Leases

IFRS 16

Question 45

Leases

IFRS 16