The Financial Reporting Framework

Question 1

IFRS 18 - Presentation and disclosure in financial statements

Answer 1

Effective for periods beginning on or after January 2027.

Helps to ensure that they provide relevant information that faithfully represents and entities assets, liabilities, income and expenses.

Requires greater disaggregation and management defined performance measures become part of the financial statements.

Profit and loss will be more defined as operating expenses will be split by function or nature

Question 2

IFRS 18 - the categories and the items included

Answer 2

Question 3

Financing category

Answer 3

Question 4

What are the three examples of the ways to set out a P+L?

Answer 4

Question 5

If any operating expenses are presented by function. IFRS 18 requires

Answer 5

Question 6

What are the totals and sub totals that must be presented on the P+L?

Answer 6

Question 7

What is the role of the notes?

Answer 7

does not need to be disclosed if not material.

Question 8

A liability is current when

Answer 8

Question 9

Presentation of items of other comprehensive income

Answer 9

Question 10

Definition of material

Answer 10

Question 11

The aim of the IASB in issuing practice statement 2 is

Answer 11

To encourage greater application of judgement in the preparation of financial statements

Question 12

Materiality Judgements when applying IFRS Standards

Answer 12

Question 13

Financial Statements provide information to primary users that are

Answer 13

Question 14

Materiality - Quantitative

Answer 14

Question 15

Materiality - Qualitative

Answer 15

Question 16

Thresholds

Answer 16

Question 17

Disclosure of Material Accounting Policies

Answer 17

Question 18

Judgements and measurement

Answer 18

Question 19

Purpose of Conceptual Framework

Answer 19

Question 20

Objective of general purpose financial reporting

Answer 20

Question 21

Which 3 aspects are useful to users?

Answer 21

Question 22

Relevance

Answer 22

Question 23

Faithful Representation

Answer 23

Question 24

Enhancing Qualitative Characteristics

Answer 24

Question 25

Comparability

Answer 25

Question 26

Verifiability

Answer 26

Question 27

Timeliness

Answer 27

Question 28

Understandability

Answer 28

Question 29

Asset Economic Resource

Answer 29

Question 30

Liability

Answer 30

Question 31

Equity

Answer 31

Question 32

Income and expenses

Answer 32

Question 33

Recognition

Answer 33

Question 34

Recognising an element

Answer 34

Question 35

What are the two main measurement bases

Answer 35

Question 36

Fair Value Value in Use Fulfillment Value Current cost of an Asset Current Cost of a liability

Answer 36

Question 37

Relevance of information if affected by

Answer 37

Question 38

Faithful Representation is affected by

Answer 38

Question 39

Effective presentation and disclosure requires

Answer 39

Question 40

Financial and Physical Capital Maintenance

Answer 40

Question 41

A complete set of financial statements comprises

Answer 41