IFRS Framework and Financial Statements Flashcards
6 cards from real Certificate in International Financial Reporting practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 IFRS Framework and Financial Statements flashcards as text
Under IAS 1, which basis of accounting must entities use when preparing financial statements?
Answer: Accrual basis
IAS 1 requires financial statements to be prepared using the accrual basis of accounting.
What is the definition of 'other comprehensive income' under IAS 1?
Answer: Items of income and expense not recognised in profit or loss as permitted or required by IFRS
OCI captures gains and losses excluded from profit or loss, such as revaluation surpluses and actuarial gains.
Under IAS 1, when can an entity offset assets and liabilities?
Answer: Only when permitted or required by an IFRS standard
IAS 1 prohibits offsetting unless a specific IFRS standard permits or requires it.
According to IAS 1, what is the minimum frequency for presenting a complete set of financial statements?
Answer: Annually
IAS 1 requires a complete set of financial statements to be presented at least annually.
Which element of the financial statements is defined as 'a present economic resource controlled by the entity as a result of past events'?
Answer: Asset
The Conceptual Framework defines an asset as a present economic resource controlled through past events.
Under IAS 1, where must changes in accounting policy be disclosed?
Answer: In the notes to the financial statements
IAS 1 requires changes in accounting policy to be explained and quantified in the notes.
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