FINANCIAL ACCOUNTING AND REPORTING
Type of journal entries according to form:
Typical Adjusting Entries classified according to timing of cash flow.
Two. Accruals - Income or expense recognition precedes the cash flow.
END FINANCIAL ACCOUNTING AND REPORTING
PURPOSE AND STATUS OF THE FRAMEWORK
The Objective of Financial Reporting
Qualitative Characteristics of Useful Financial Information
Fundamental Characteristics
Ingredients of relevance:
Ingredients of Faithful Representation
Enhancing qualitative characteristics
The cost constraint on useful financial reporting
The Elements of Financial Statements
The elements directly related to financial position and their definition according to the framework are:
The elements directly related to performance and their definition according to the framework are:
Recognition of the Elements of Financial Statements
Measurement of the Elements of Financial Statements
Concepts of Capital Maintenance
Presentation of Financial Statements (PAS One)
Purpose of Financial Statements
Overall Considerations for Statement Presentation
Accrual Basis of Accounting
Consistency of Presentation
Materiality and Aggregation
Statement of Financial Position
Breach of a Loan Covenant
Statement of comprehensive income
Components of Comprehensive Income
Information to be presented in the statement of comprehensive income
Other expenses Income before tax
Statement of Changes in Equity
Notes to the Financial Statements
Treatment of Changes in Accounting Policies
Two. Changes in Accounting Estimate
Disclosures Relating to Prior Period Errors
Identifying an Operating Segment
Reportable Segment - An operating Segment for which segment information is required to be disclosed
Disclosures Required for Reportable Segments
Minimum Components of an Interim Financial Report
Required information in Condensed Statements
General Guidelines of Interim Financial Reporting
USE OF ESTIMATES - Interim reports require a greater use of estimates than annual reports.
SEASONAL, CYCLICAL OR OCCASIONAL REVENUE
FINANCIAL ACCOUNTING AND REPORTING
Going Concern Issues Arising After Reporting Period
FINANCIAL ACCOUNTING AND REPORTING
Objective of PAS Twenty-four
The following are not necessarily related parties
Examples of the Kinds of Transactions that Are Disclosed If They Are with a Related Party
FINANCIAL ACCOUNTING AND REPORTING
Example of Adjusted Balance Reconciliation
FINANCIAL ACCOUNTING AND REPORTING
Allowance for doubtful accounts
Allowance Method vs. Direct Write-off Method
Valuation or the Carrying Amount of Notes Receivable
Key Terms and Definitions
FIFO Perpetual and Periodic Illustrated
Periodic Average or Weighted Average
Measurement of Inventories
Write-Down to Net Realizable Value
Recognition as an Expense
Inventory Estimation Techniques
Objective of PAS forty-one
Measurement of fair value
Disclosure requirements in PAS forty-one include:
Identification of Associates
Accounting for Associates
Applying the Equity Method of Accounting
Six. Transactions with associates
Nine. Losses in excess of investment
Definition of Investment Property
The following are not investment property and, therefore, are outside the scope of PAS Forty:
Other Classification Issues
Intracompany rentals - Property rented to a parent, subsidiary, or fellow subsidiary
Transfers to or from Investment Property Classification
Disclosures under the Fair Value Model and Cost Model
When Are Shareholders Entitled to Dividends
Accounting for Stock Rights
Theoretical Value of Stock Rights
Market value of share less Exercise Price Number of rights to purchase one share plus one Market value of share less Exercise Price Number of rights to purchase one share
Shares in lieu of cash dividends and cash in lieu of stock dividends
RECLASSIFICATION OF FINANCIAL ASSETS
Timing of Reclassification of Financial Assets
INITIAL MEASUREMENT OF PPE
Examples of costs that are not costs of an item of property, plant and equipment and should be expensed:
Government grants and government assistance.
There are four types of significant government grants that will require the following treatment:
Presentation of Grants Related to Assets.
Presentation of Grants Related to Income.
Repayment of Government Grant.
WHAT HAPPENS TO THE COST OF THE OLD USABLE BUILDING WHEN DEMOLISHED?
Reasoning behind requirements:
Borrowing Costs Eligible for Capitalization
Commencement of Capitalization
Suspension of Capitalization
Cessation of Capitalization
DEPRECIATION AND DEPLETION
Depreciable Amount and Depreciation Period
SUBSEQUENT MEASUREMENT - REVALUATION MODEL
DEPRECIATED REPLACEMENT COST
REALIZATION OF REVALUATION SURPLUS
TAXABLE TEMPORARY DIFFERENCE
Less: Deferred tax at thirty percent.
Fair Value Less Costs to Sell
Considerations for Cash Flow Projections
Recognition of an Impairment Loss
PROCEDURES AFTER TESTING THE CGU FOR IMPAIRMENT REGARDLESS WITH OR WITHOUT GOODWILL
Reversal of an Impairment Loss
Monetary assets - Money held and assets to be received in fixed or determinable amounts of money.
Recognition and Initial Measurement
Initial Measurement and Subsequent Expenditures
Internally Generated Intangible Assets
Measurement Subsequent to Acquisition
Classification of Intangible Assets Based on Useful Life
Measurement Subsequent to Acquisition of Intangible Assets with Finite Lives
Measurement Subsequent to Acquisition of Intangible Assets with Indefinite Lives
Key Principles on Certain Intangible Assets
Principles on amortization:
PAS ten Events after Balance Sheet Date (Reporting Period)