W1/W2 - Introduction

Question 1

Fundamental qualitative characteristics of the Conceptual Framework?

Answer 1

relevance and faithful representation

Question 2

The four enhancing qualitative characteristics of the Conceptual Framework?

Answer 2

Timeliness, understandability, verifiability and comparability.

Question 3

The annual report is split into 2 parts, which ones?

Answer 3

Narrative statements (strategic report + corporate governance statements) and audited financial statements.

Question 4

A complete set of financial statements comprises (6/7 things):

Answer 4

1. A statement of financial position
2. A statement of profit or loss and other comprehensive income
3. A statement of changes in equity
4. A statement of cash flows
5. Notes, comprising significant accounting policies and other explanatory information
6. Comparative information in respect of the preceding period
7. A statement of financial position as at the beginning of the preceding period if retrospective adjustments are made

Question 5

What is “non-underlying items” ?

Answer 5

one-off and non-recurring transactions, material items…

Question 6

How do you change accounting estimates?

Answer 6

CHANGE FINANCIAL STATEMENTS PROSPECTIVELY

Question 7

How do you change accounting policies?

Answer 7

CHANGE FINANCIAL STATEMENTS RETROSPECTIVELY (except HC -> Revaluation of PPE), and it should be RARE