IFRS - IFRS Framework and Revenue Recognition Framework:...

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Framework and Revenue Recognition Framework: Preface to IFRS -The aim of the preface to IFRS is to: Set out the objectives and operating procedures of the IASB Explain the scope, authority and timing of application of IFRS Bold and plain type paragraphs have equal authority Standards and Application Guidance are authoritative, Implementation Guidance is non- authoritative IFRSs are for general purpose financial reporting by profit-oriented entities -Assist in development of future IFRSs and review of existing IASs -Assist preparers and users in preparing and interpreting IFRS financial statements and with the issues not covered by standards The framework deals with fundamental matters -The objective and elements of financial statements -Underlying assumptions and qualitative characteristics -Definition, recognition and measurement of -Assets and liabilities, and -Income and expenses -Concepts of capital and capital maintenance Required components of financial statements -Balance Sheet -Statement of Comprehensive Income -Statement of Equity -Cash flow statement -Notes -Comparative Reporting Required IAS 8 establishes “hierarchy” when choosing IFRS accounting policies 1. Apply any specific IFRS 2. Refer to other IFRSs dealing with similar or related issues 3. IFRS Framework 4. Consider pronouncement of other standard-setting bodies (with similar conceptual framework) or industry practices if consistent with above LS Enterprises has developed a new machine, the Freebird, which its intends to sell to manufacturing companies producing birdhouses. The Freebird must be installed and incorporated into existing manufacturing processes. LS Enterprises sells its first Freebird, including installation, to ABC CO. on December 26, 20X0 for USD 10 million. Installation is expected to be complete in January 20X1 at a cost of USD 100,000 to LS
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This note was uploaded on 05/23/2010 for the course BUAD 306 taught by Professor Selvili during the Spring '07 term at USC.

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IFRS - IFRS Framework and Revenue Recognition Framework:...

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