IAS

Frage	Antworten
1 What is IAS 1?	PRESENTATION OF FINANCIAL STATEMENTS
1 What is the purpose of the standard PRESENTATION OF FINANCIAL STATEMENTS?	•Set out how financial statements should be presented to ensure comparability with previous accounting periods and with other companies
1 What is the purpose of financial staements?	THE PURPOSE OF FINANCIAL STATEMENTS IS TO "PROVIDE INFORMATION ABOUT THE FINANCIAL POSITION, FINANCIAL PERFORMANCE AND CASH FLOWS OF AN ENTITY THAT IS USEFUL TO A WIDE RANGE OF USERS IN MAKING ECONOMIC DECISIONS"
1 What is the Financial Position reported through?	balance sheet
1 What is the Financial Performance reported through?	income statement
1 What is the Cash Flows reported through?	cash flow statement
1 Define Entity?	an organisation, such as a limited company
1 How do you use to make a Economic Decision?	information from the financial statements is used to help in making decisions about investment in the company
1 What is included in Financial statements:	•Income Statement •Balance sheet •Statement of changes in equity •Cash Flow Statement •Accounting policies and Expanatory notes
1 What MAIN accounting concepts comply with IAS 1?	Goings concern Accuals Consistency Materiality
1 What accounting concepts are the bedrock of IAS 1?	Prudence Business Entity Realisation Historical costs Money Measure Duality
1 Other Considerations to take into accounts when preparing company financial accounts?	Offsetting & Comparative infomation
1 What is Offsetting?	Generally its not permitted to set-off assets and liabilites, and income and expenses against each other in order to show a net figure, eg cash at bank is not to be netted off against a bank overdraft
1 What is Comparative infomation?	its a requirement to show the figures from previous time period in the financial statements in order to help users of the statements.
2 What is IAS 2?	INVENTORIES
2 What does types of inventories does it apply to?	Applies to all types of inventories
2 What is is IAS 2 used for?	Used to set out the accounting techniques to be used when valuing inventories
2 What are the different forms of inventories?	•Raw material •work-in-progress •Products brought for resale by a retailer •service items
2 Define Raw Material inventories?	•Raw material, for use in a manufacturing business
2 Define work-in-progress inventories?	•work-in-progress (partly manufactured goods) and finished goods (ready for sale) of a manufacturing business
2 Define Resale inventories?	•Products brought for resale by a retailer
2 Define service items inventories?	•service items, such as stationary, brought for use within business
2 What is the overriding principle of inventory valuation, as set out in IAS 2?	inventories are to be valued at "the lower of cost and net realisable value"
2 how many different values are compared when calculating the lowest value of the inventories?	2 - Cost & Net realisable value
2 Define Cost in relation to valuing the inventories?	•Cost, which means the purchase price, plus any other cost incurred to bring the product to its present location and condition
2 Define Net realisable value in relation to valuing the inventories?	•Net realisable value, which is the estimated selling price less the estimated costs to get the product into a condition necessary to complete the sale
2 Which one of Cost & Net realisable value is recorded?	Lower value
7 What is IAS 7?	CASH FLOW STATEMENTS
7 What is the perpose of IAS 7?	Ias 7 requires that a cash flow statement is included as part of a company's financial statements
7 What is the cash flow statement used for?	•Cash flow statement focuses on cash inflow and outflows, and reports on changes in the financial position of the company
7 Where does the cash flow statement get its information from?	A Cash Flow statement uses information from the accounting records (including income statement and balance sheet) to show an overall view of money flowing in and out of a business during an accounting period
7 IAS 7 provides the format for cash flow statements, divided into how many sections?	3 - Operating activities, Investing activities & Financing activities

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