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 8, how should an entity account for a change in accounting estimate?
Answer: Prospectively
Changes in accounting estimates are applied prospectively, affecting current and future periods.
Which IAS standard addresses accounting policies, changes in accounting estimates, and errors?
Answer: IAS 8
IAS 8 covers the selection and application of accounting policies, estimate changes, and prior period errors.
Under IAS 8, how should material prior period errors be corrected?
Answer: By restating the comparative amounts for prior periods presented
IAS 8 requires retrospective restatement of comparative information for material prior period errors.
What is the hierarchy for selecting accounting policies under IAS 8 when no specific IFRS standard applies?
Answer: IFRSs dealing with similar issues, then Conceptual Framework
IAS 8 requires management to look at IFRSs for analogous situations, then the Conceptual Framework.
Under IAS 10, which of the following is an example of an adjusting event after the reporting period?
Answer: Resolution of a court case confirming a liability that existed at period end
An adjusting event provides evidence of conditions that existed at the balance sheet date and must adjust the figures.
Under IAS 10, non-adjusting events after the reporting period should be:
Answer: Disclosed in the notes if material
Material non-adjusting events are disclosed in the notes to inform users without changing the figures.
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