AC2101 S1 2014 Seminar 1.pptx

If interested please refer to scotts 22 11 concepts

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Unformatted text preview: General recognition criteria (conceptual framework): 1.  Meet the definition of a financial statement element 2.  Probable inflow/outflow of future economic benefit 3.  Cost or value can be reliably measured -   Item- specific recognition criteria §༊  Found in the accounting standards governing the specific item Probable = More likely than not (in practice, > 50%) 19 Specific Recognition Principles.. *  Found in specific FRSs *  Applicable only to the specific accounting items covered in the FRSs *  May not be fully consistent with the general recognition principles 20 10 Accounting Recognition, Measurement & Disclosure Measurement -   Process of determining the monetary amount of an item to be recognized & carried in the F/S -   The focus of this and next seminar Disclosure -   Accounting standards often require that certain information be disclosed either in the main body of or in the notes to the financial statements. -   Is it the same as presentation? Relationship? 21 Different Perspectives – in AC 3103 *  What is information perspective? *  The information perspective on decision usefulness is an approach to financial reporting that recognizes individual responsibility for predicting future firm performance and that concentrates on providing useful information for this purpose. *  What is the measurement perspective? *  The measurement perspective on decision usefulness is an approach to financial reporting under which accountants undertake a responsibility to incorporate fair values into the financial statements proper, providing that this can be done with reasonable reliability, thereby recognizing an increased obligation to assist investors to predict firm value...
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This document was uploaded on 02/10/2014.

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