CFAS asset -- is a resource controlled by the entity as a result of

hierarchy of accounting pronouncements -- IAS 8, past events and from which future economic benefits are
conceptual framework of accounting -- a structured theory paragraph 11, provides a expected to flow to the entity.
of accounting
provide useful information -- the basic objective of liability -- is a present obligation of the entity arising from
scope and objective -- Highest theoretical levels: it states external financial report past events, the settlement of which is expected to result
the __ and __ of financial reporting in an outflow from the entity of resources embodying
information -- useful in making economic decisions, economic benefits.
relevance, reliability, comparability, timeliness and assessing cash flow
understandability -- defines the qualitative characteristic Equity -- is the residual interest in the assets of the entity
of financial information which are: hierarchy of qualities -- it becomes necessary to develop a after deducting all its liabilities.
_____ which make information useful
assets, liabilities, equity, income, expenses, and profit -- income -- is increases in economic benefits during the
the basic elements of accounting reports principles based and rules based standard setting accounting period in the form of inflows or enhancements
users of accounting information of assets or decreases of liabilities that result in increases
Conceptual Framework -- A coherent system of information for decision making in equity, other than those relating to contributions from
interrelated objectives and fundamentals that is expected decision theory approach -- key issues in developing equity participants
to lead to consistent standards and that prescribes the conceptual frameworkss
nature, function and limits of financial accounting and expenses -- are decreases in economic benefits during the
reporting. consistent principles -- CF have an important role in the accounting period in the form of outflows or depletions of
standard setting process because they provide a assets or incurrences of liabilities that result in decreases in
Gresham's law -- bad practices at times triumph over framework for the development of a body of coherent equity, other than those relating to distributions to equity
good practices standards based on? participants.

Gellein -- Inconsistency of practice has been seen as a rules-based standards -- have some advantages which reliability -- The item has a cost or value that can be
problem. Who was the former member of both the APB and explains their popularity including increased comparability measured with?
FASB who commented that because of the lack of and verifiability for auditors and regulators
conceptual framework March 2001 -- when was International Accounting
stewardship function -- accounting information for Standards Committee (IASC) Foundation formed as a not-
Solomons -- A principle or practice would be declared to decision making begins with the? for-profit corporation incorporated in the state of Delaware,
be 'right' because it was generally accepted ; it would not USA. The IASC Foundation is the parent entity of the
be generally accepted because it was 'right' input -- accounting information is seen as __ data for the International Accounting Standard Board and independent
prediction models of users accounting standard setter based in London, UK
1987-2000 -- FASB issued seven concept statements
covering the following topics in what year stewardship -- mainly concerned with the past while International Accounting Standards Board (IASB) --
prediction look towards the future Established in 2001, ___ is an independent private sector
1989 -- International Accounting Standard Committee body. Its objectives is to achieve convergence in the
(IASC) what year overall theory of accounting (top left) accounting principles that are used by businesses and
individual accounting system other organizations for financial reporting around the
IAS 8, paragraph 10 -- requires that in the absence of an prediction model of user world.
IASB standard or interpretation that specifically applies to a decision model of user -- decision-theory approach
transaction, other event or condition, management must 1973 -- The International Accounting Standards
use judgement in developing and applying an accounting Committee was formed in what year through as agreement
policy that results in information that is made by professional accountancy bodies from Australia,
Canada, France, Germany, Japan, Mexico, Netherlands, 1997 -- In ___, the ASC made a decision to move totally to
United Kingdom, Ireland, and the United States of America. International Accounting Standards Board (IASB) -- The ___ International Accounting Standards:
is the independent standard-setting body of the IFRS
April 1, 2001, -- when did the International Accounting Foundation International Organization of Securities Commissions --
Standards Board assumed accounting standard setting IOSCO means, they also has agreed to consider use of
responsibilities from its predecessor body, the International IFRS Advisory Council -- The ___ normally meets with the International Accounting Standards in cross border capital
Accounting Standards Committee. IASB at least three times a year for two days each and raising and listing purposes in all global markets if IASC
those meetings are open to the public. The Board id (now the IASC) can complete certain core and other
International Federation of Accountants -- IFAC stands for required to consult the IFRS Advisory Council in advance of standards.
any proposed changes to the Constitution.
IASB structure -- The ____ structure is designed to support 1989, 2010 -- previous CF was issued in ___ and partly
those attributes considered desirable to establish the IFRS Interpretation Committee -- The _____ is the revised in ___? useful but incomplete
legitimacy of a standard setting organization: the interpretative body of the IASB. The interpretations
representativeness of the decision making body, the Committee comprises 14 voting members appointed by the revised conceptual framework -- a comprehensive set of
independence of its members, and technical expertise. Trustees and drawn from a variety of countries and concepts for financial reporting
professional backgrounds.
IFRS Foundation -- former IASF foundation is now called priority, filling gaps, updating, clarifying -- process from
what International Accounting Standards (IAS)". -- It has also old to revised CF
adopted the body of Standards issued by the Board of the
Monitoring Board -- The primary purpose of the ___ is to International Accounting Standards Committee (1973- 1989 -- framework for the preparation and presentation of
serve as a mechanism for formal interaction between 2001). Those pronouncements continue to be designated financial statements then conceptual framework for
capital market authorities and the IFRS Foundation as?? financial reporting on 2010 and 2018
(formerly the IASCF) - the objective being to facilitate
capital market authorities that allow or require the use of Accounting standards -- are authoritative statement of Conceptual Framework for Financial Reporting -- is a
IFRSs in their jurisdictions to discharge their mandates how particular types of transaction and other events should document which provides the Concepts and Objective of
relating to investor protection, market integrity and capital be reflected in financial statements. Accordingly, General Purpose Financial Reporting.
formation more effectively compliance with ___ will normally be necessary for the fair
presentation of financial statements. international accounting standards board -- who issued
International Accounting Standards Committee -- IASC the revised CFFR in 2018
stands for accountancy -- The ___ profession (through national
institutes, international accounting firms and the first level - objectives of financial reporting
IASC -- IFRS was former ___, IFRS is a independent, not-for International Forum for Accountancy Development) is second level - qualitative characteristics and elements of
profit private sector organization working in the public committed to promoting and supporting compliance with financial statements
interest. IFRS by preparers and auditors of financial information. third level - recognition, measurement, and disclosure
concepts -- three levels of the conceptual framework
international financial reporting standards -- IFRS stands Accounting Standards Council (ASC) -- In developing
for accounting standards that will be generally accepted in the statement of financial position -- A reporting entity's
Philippines, the ____, the precursor of the Financial economic resources and claims are reported in the
Trustees -- The governance and oversight of the activities Reporting and Standard Council (FRSC), considered
undertaken by the IFRS Foundation and its standard-setting standards issued by other standard-setting bodies such as relevant -- information is ___ if it is capable of making a
body rests with its ___, who are also responsible for the U.S Financial Accounting Standards Board (FASB) and difference to the decisions made by users
safeguarding the independence of the IASB and ensuring the International Accounting standards Committee (now
the financing of the organization. The ___ are publicly the IASB).
accountable to a Monitoring Board of public authorities.
predictive value or confirmatory value -- financial verifiability -- occurs when independent measures using A change in accounting estimate -- it is an adjustment of
information is capable of making a difference in decisions if the same methods obtain similar results the carrying amount of an asset or liability, or related
it has expense, resulting from reassessing the expected future
timeliness -- having info available to decision-makers benefits and obligations associated with that asset or
faithful representation -- a ____ is to the maximum extent before it loses its capacity to influence decisions liability.
possible complete neutral and free from error, affected by
level of uncertainty understandability -- the quality of info that lets reasonably materiality -- information is __ if omitting, misstating, or
informed users see its significance obscuring it could reasonably be expected to influence
comparability decisions that the primary users of general purposee
verifiability reporting entity -- required to present financial statements make on the basis of those financial
timeliness statements
understandability -- four qualitative characteristics financial statements -- fin reports that provide info
enhance the usefulness of information, vannot make non prior period errors -- are omissions from, and
useful info useful consolidated financial statements -- includes subsidiaries misstatements in, an entity's financial statements for one
as a single reporting entity or more prior periods arising from a failure to use, or
cost constraint -- the benefit of providing the information misuse of, reliable information that was available and could
needs to justify the cost of providing and using the unconsolidated financial statements -- provide info about reasonably be expected to have been obtained and taken
information asset.. of the parent only into account in preparing those statements. Such errors
result from mathematical mistakes, mistakes in applying
prudence -- does not allow for overstatement of assets, combined financial statements -- provide info about accounting policies, oversights or misinterpretations of
liabilities, income or expenses assets,.. parent-subsidiary relationship facts, and fraud.

measurement uncertainty -- does not prevent informatioln going concern assumption -- IFRS states that this is an the Standard or Interpretation -- When a Standard or an
from being useful. but the most relevant info may have a underlying assumption. the entity will continue in operation Interpretation specifically applies to a transaction, other
high level of measurement uncertainty indefinitely event or condition, the accounting policy or policies applied
to that item must be determined by applying the
material -- info is __ if omitting or misstating it could balance sheet -- reports financial position
influence decisions that users make Consistency of accounting policies -- An entity shall select
income statement -- reports financial performance and apply its accounting policies consistently for similar
faithful rep -- means the numbers and descriptions match transactions, other events and conditions, unless a
what really existed or happened statement of changes in owner's equity -- reports the Standard or an Interpretation specifically requires or
amount and sources of changes in equity permits categorization of items for which different policies
Completeness -- means all info that are necessary for may be appropriate. If a Standard or an Interpretation
faithful rep is provided cash flow statement -- shows changes in financial position requires or permits such categorization, an appropriate
of business from perspective of movement of cash into and accounting policy shall be selected and applied
neutrality -- a company cannot select info to favor one set from business consistently to each category
of interested parties
International Organization of Securities Commissions -- 1. When it is required by another IFRS. This will be the case
free from error -- an info that is __ will be a more accurate IOSCO means when new IFRS is issued and you HAVE TO apply it
faithful rep of a financial item mandatorily.
Accounting policies -- these are the specific principles,
comparable -- info that is measured and reported in a bases, conventions, rules and practices applied by an 2. When new accounting policy provides better, more
similar manner for diff companies is considered entity in preparing and presenting financial statements. reliable and relevant information. In this case, you apply
new accounting policy voluntarily -- When can you change identification -- Every element of the financial statements footnote disclosures -- Generally, the notes are the main
the accounting policy? shall contain the name of the reporting entity, the method for a company to comply with the full disclosure
Only at 2 circumstances: information whether the financial statements are of an principle. The notes are also referred to as?
individual or of a group, the date of the reporting entity and
retrospectively -- means going back to the previous period covered, the presentation currency and the level of international accounting standards boards (IASB) --
reporting periods and restating every single component of rounding accounting principles sections 3 and 4 have been published
equity as if the new policy had always been in place. by
current assets -- assets which are readily convertible to
prior period errors -- are some omissions (that's when you cash profit, loss, expense, revenue -- elements of income
forget something) or misstatements in the financisl This will determine the liquidity of the entity statement
statements as a result of ignoring or misusing the
information that was available or could be reasonably non-current assets -- those assets which will not get assets, liabilities, owner's equity -- elements of balance
obtained when preparing these financial statements converted into cash within one year and are noncurrent in sheet/financial position
nature
presentation of financial statements -- Represents a basis balance sheet -- "for the period"
of the whole IFRS reporting, as it sets overall requirements current liabilities -- are obligations due within one year or
for the presentation of financial statements, guidelines for the normal operating cycle of the business, whichever is income statement -- "as of"
their structure and minimum requirements for their longer. These liabilities are generally paid with current
content. assets.

To provide information about the financial position, non-current or long-term liabilities -- are debts of the
financial performance and cash flows of an entity that is business that are due beyond one year or the normal
useful to a wide range of users in making economic operating cycle of the business. Long-term debt is an
decisions. -- Purpose of Financial Statements example of a long-term liability and may include: leases,
bank notes, bonds payable, and mortgage loans.
1.statement of financial position as at the end of the period
2.statement of comprehensive income for the period •Profit or loss for the period
3.a statement of changes in equity for the period •Other comprehensive income -- 2 basic elements of
4.a statement of cash flows for the period comprehensive income
5.notes containing a summary of significant accounting
policies and other explanatory information. -- Basic Profit or loss for the period -- -all items of income and
Components of Financial Statements expenses must be recognized.

1.fair presentation and compliance with IFRS other comprehensive income -- -items recognized directly
2.going concern, to equity or reserves, such as changes in revaluation
3.accrual basis of accounting, surplus, gains or losses from subsequent measurement of
4.materiality and aggregation, available-for-sale financial assets, etc.
5. offsetting,
6.frequency of reporting, Notes to Financial Statements -- are a required, integral
7.comparative information and part of a company's external financial statements. They are
8.consistency of presentation. -- General Features Of required since not all relevant financial information can be
Financial Statements communicated through the amounts shown (or not shown)
on the face of the financial statements.