Advanced financial accounting - Lecture 25: IASB frame-work. The main topics covered in this chapter include: international accounting standard board; financial statements; balance sheet; income statement; statement of changes in equity; cash-flow statement; notes;... Please refer to the lecture for details!
Advanced Financial Accounting FIN-611 Mian Ahmad Farhan Lecture-25 IASB Frame-work IASB Frame-work International Accounting Standard Board Financial Statements Balance sheet Income statement Statement of changes in equity Cash-flow statement Notes Financial Statements Balance sheet Financial position Income statement Financial performance Statement of changes in equity Movement In different heads of owner’s equity Cash-flow statement Movement in cash inflow and cash outflow Notes Significant accounting policies and explanatory notes Qualitative Characteristics of Financial Statements Going concern The entity will continue its operations for the foreseeable future and there is no intention to liquidate or significantly curtail its operations Accrual base Incomes and expenditures are not measured at the amount of cash received or paid during the year but for incomes the measurement bases are earning and for expenses measurement bases are incurrence These are recorded in the accounting record and reported in the financial statement for the period to which they relate Materiality Information is material when its omission or misstatement could change the decisions of users Qualitative Check Materiality Relevancy Reliability Comparability Understanding Qualitative characteristics that make financial information useful Qualitative characteristics that make financial presentation useful Relevancy The financial statement are relevant for decision making Purpose for the use of financial statement Values to be relevant Predictive value Confirmative value Reliability How much faithfully the financial statement representing the transaction Five Characteristics of Reliability Faithful representation Substance over form Neutralability Prudence Completeness Constraints / Limitations relating to Relevancy & Reliability Timeliness Balance between the benefit and cost Balance among the different characteristics .. .IASB Frame-work International Accounting Standard Board Financial Statements Balance sheet Income statement Statement of changes in equity Cash-flow statement Notes Financial Statements... make financial information useful Qualitative characteristics that make financial presentation useful Relevancy The financial statement are relevant for decision making Purpose for the use of financial. .. Financial Statements Balance sheet Financial position Income statement Financial performance Statement of changes in equity Movement In different heads of owner’s equity Cash-flow statement Movement in