This document contains lecture material from an IFRS course, including questions and key points about the IASB regulatory framework and conceptual framework.
The first chapter discusses the four bodies involved in IFRS standard setting - the IASB, IFRS Interpretations Committee, IFRS Foundation, and Trustees. It also describes the IFRS standard setting process and asks about benefits and barriers to global harmonization with IFRS.
The second chapter introduces the conceptual framework, its purposes, and pros and cons. It outlines the framework's main elements - qualitative characteristics, recognition criteria, measurement bases, and fair presentation requirements. Key topics covered include objectives of financial reporting, accrual basis, going concern
This document contains lecture material from an IFRS course, including questions and key points about the IASB regulatory framework and conceptual framework.
The first chapter discusses the four bodies involved in IFRS standard setting - the IASB, IFRS Interpretations Committee, IFRS Foundation, and Trustees. It also describes the IFRS standard setting process and asks about benefits and barriers to global harmonization with IFRS.
The second chapter introduces the conceptual framework, its purposes, and pros and cons. It outlines the framework's main elements - qualitative characteristics, recognition criteria, measurement bases, and fair presentation requirements. Key topics covered include objectives of financial reporting, accrual basis, going concern
This document contains lecture material from an IFRS course, including questions and key points about the IASB regulatory framework and conceptual framework.
The first chapter discusses the four bodies involved in IFRS standard setting - the IASB, IFRS Interpretations Committee, IFRS Foundation, and Trustees. It also describes the IFRS standard setting process and asks about benefits and barriers to global harmonization with IFRS.
The second chapter introduces the conceptual framework, its purposes, and pros and cons. It outlines the framework's main elements - qualitative characteristics, recognition criteria, measurement bases, and fair presentation requirements. Key topics covered include objectives of financial reporting, accrual basis, going concern
CH 1 the IASB & Regulatory Framework Q1- There are the 4 different bodies involved in the IFRS setting process Give a brief description of each one highlighting their role in the standard setting process? Dec 11 8 marks
Q2- Describe the IFRS Foundation's standard setting process
including how standards are produced, enforced and occasionally supplemented. 10 marks Q3- Discuss the benefits and the barriers to Global Harmonization to IFRS. 8 marks Q4- Explain in what ways IFRS differs from US GAAP. 4 marks IFRS first time Adoption Issues / challenges / requirements / Exemptions. CH2 The Conceptual Framework Q1- what is meant by the conceptual framework for IFRS? Q2- What are the main purposes of the conceptual framework? Q3- What are the pros and cons of the existence of conceptual framework? Q4- Identify 4 users of FS and explain what information they are likely to want? Main Points of the Conceptual framework: The objective of financial Reporting. Accrual basis (trx recorded once they occur)
HSCS Training & Consulting
Underlying Assumption Going Concern (No intention
to liquidate) Qualitative Characteristics of useful Financial information: - Relevance relevant inf. Can make difference in decision making. - Faithful representation (complete,neutral,free from error) Substance over form
- Timeliness inf. Available in time (for instance if ur. comp. needs a loan to do a project for a customer ) - Understandability The Elements of Financial Statements Statement of Financial Position: - Assets- resources controlled past event-future economic benefits
- Liability- Provision
(present obligation-past event-outflow of economic
benefits)
- Equity ( Assets liabilities )
page33 Financial Performance Statement of Profit or Loss: - Income Gains ( disposal of NCA) - Expenses Losses (disposal of NCA) Recognition of Elements of Financial Statements: - Probability of future economic benefits - Reliable Measurement..if can't be estimated should not be recorded
Measurement of FS elements: - Historical Cost - Current cost No discounting for liabilities
HSCS Training & Consulting
- Realizable Value = amount obtained by selling the
asset - Present Value: present discounted value of future net cash flows Fair Presentation and compliance with IFRS - Compliance with IFRS should be disclosed - All relevant IFRS must be followed if compliance with IFRS is disclosed - Inappropriate accounting treatment is not allowed and can't be justified.