Term
| According to IFRS 3 Business Combinations, how is the term 'Goodwill' defined? |
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Definition
| an asset representing the future economic benefits arising from … assets acquired in a business combination that are not individually identified and separately recognised |
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Term
| IAS 17 - Leases defines a lease as |
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Definition
| "an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time". |
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Term
| According to IAS 16 - Property, Plant and Equipment, how is the term 'Fair Value' defined? |
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Definition
| Fair value (IAS 16 - Property, Plant and Equipment)is the amount for which an asset could be exchanged between knowledgable willing parties in an arms length transaction. |
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Term
| An asset is a current asset if it satisfies any of the following criteria: |
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Definition
it is expected to be realised within the entity's normal operating cycle;
it is held for the purpose of being traded;
it is expected to be realised within 12 months after the reporting period;
it is cash or a cash equivalent as defined by IAS7. |
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Term
| When can you capitalise internally generated intangibles? (IAS 38 - Intangible Assets) |
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Definition
the generation of the asset is classified into:
•a research phase (never capitalise)
•a development phase (may be capitalised but criteria need to be met)
•technically feasible (totally)
•intention to complete and use or sell the asset (important)
•ability to use or sell the asset (always)
•existence of a market or demonstration of usefulness of intangible (employ)
•availability of technical, financial or other resources to complete the asset (attractive)
•measure the cost reliably (monkeys). |
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Term
| According to IAS 38 - Intangible Assets - when should intangibles be recognised on a balance sheet (statement of financial position)? |
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Definition
Intangibles should be recognised if, and only if, the following criteria are met:
•it is probable that the future economic benefits will flow to the enterprise; and
•the of the asset can be measured reliably |
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Term
| Define the term 'DEPRECIATION' as per IAS 16 - Property, Plant and Equipment. |
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Definition
| Dereciation (IAS 16 - Property, Plant and Equipment) is the systematic allocation of the depreciable amount (cost or valuation less residual value) of an asset over its useful economic life. |
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Term
| According to IAS 1 - Presentation of financial statements, what are the components of the financial statement? |
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Definition
Statement of financial position (at the beginning and end of the period)
Statement of comprehensive income
Statement of changes in equity
Statement of cash flows (IAS7)
• Notes |
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Term
| Non-adjusting events (IAS 10 - Events after the reporting period) are...? |
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Definition
| Events that are 'post balance sheet (financial statement) events' that are indicative of conditions that arose after the reporting period |
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Term
| According to IAS 7 - Cash Flow Statements - what is the format of the Cash Flow Statement? |
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Definition
Cash flows from operating activities
Profit from operations
Adjustments for:
Depreciation
Disposal of property, plant and equipment ((Gain)/Loss)
Operating cash flows before working capital changes
Inventories increase/decrease
Receivables increase/decrease
Payables decrease/increase
Cash generated from operations |
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Term
| Adjusting events (IAS 10 Events after the reporting period) are....? |
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Definition
| Events that provide evidence of conditions that actually existed at the end of the reporting period, albeit they were not known at the time |
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Term
| An operating lease (IAS 17 - Leases) is...: |
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Definition
| a lease other than a finance lease |
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Term
| What is an Intangible Asset as per IAS 38 - Intangible Assets |
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Definition
| According to IAS 38 - Intangible assets are assets that have an identifiable non-monetary asset without physical substance. Assets are identifiable because they are separate, or because they are identifiable through legal or contractual rights. |
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Term
IAS 17 - Leases
A finance lease is...: |
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Definition
| a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred |
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Term
| Factors which indicate a finance lease |
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Definition
the lease transfers ownership of the asset to the lessee by the end of the lease term
the lessee has the option to purchase the asset at a price expected to be lower than fair value
the lease term is for the major part of the economic life of the asset
the present value of the minimum lease payments amounts to substantially the fair value of the asset
the leased asset is of such a specialised nature that only the lessee can use it. |
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Term
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Definition
| The residual interest in the assets of the entity after deducting all of its liabilities |
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Term
| According to IAS 16 - Property, Plant and Equipment,how is Property, Plant and Equipment identified? |
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Definition
Property, Plant and Equipment is:
•held for use in the prodution or supply of goods and services for rental to others, or for administrative purposes; and
•are expected to be used during more than one period |
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Term
| Four examples of qualitative characteristics of financial statements |
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Definition
•Comparability
•Understandability
•Relevance
•Reliabilty |
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Term
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Definition
| A 'present' obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits |
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Term
| What characteristics make financial information reliable? |
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Definition
•Faithful representation
•Neutrality
•Prudence |
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Term
| Two 'bedrock' assumptions that underlie the preparation and presentation of financial statements |
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Definition
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Term
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Definition
| A resource controlled by the entity as a result of past events from which future economic benefits are expected to flow to the entity |
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