Financialaccounting 3 THEORIES SUMMARY VALIX DOCX

Title	Financialaccounting 3 THEORIES SUMMARY VALIX
Author	Mary Rose Menez
Pages	10
File Size	25.6 KB
File Type	DOCX
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Summary

Description

FINANCIAL ACCOUNTING VOL3 SUMMARY VALIX jkycpa 1 When an entity departs from a standard, entity should disclose the ff: a Management has concluded that FS is fairly presented b It has complied with applicable standards and interpretation, except that it has departed from a particular requirement to achieve fair presentation. c The title of the standard or interpretation from which entity has departed. The treatment adopted d Financial impact of the departure on each item that would have been reported in complying with the requirement 2 Going concern is relevant when mgt shall make an estimate of the expected outcome of future events, such as recoverability of AR and useful life of noncurrent assets 3 Uncertainties regarding the ability of the entity to continue as a going concern shall be fully disclosed 4 Investment income is presented separately in the income statement 5 Materiality is relativity and nature of an item(bribe) 6 Expenditure related to a provision and any reimbursement from a third party can be offset and only the net expenditure is presented as expense in the income statement 7 Offsetting can be displayed when gains and losses from trading securities are netted against each other 8 Entity shall disclose comparative information in respect of the previous period for all the amounts reported in the current period's financial statements 9 The outcome of uncertain events at the end of the preceding period and is yet to be resolved, are disclosed in the current period ( legal dispute). Users shall benefit from information that an uncertainty existed at the end of the immediately preceding period, and steps have been taken during the current period to resolve the uncertainty. 10 When entity makes retrospective restatement, 3 statement of FS shall be presented: end of the current period, previous period, beginning of the earliest comparative period. 11 Financial structure-source of financing for assets. Indicates how profits and cash flows will be distributed between creditors and owners 12 Financial flexibility- use its available cash for unexpected requirements and investment opportunities or raise cash through borrowing and sale of securities or sale of assets without disrupting normal operations. 13 Cash equivalents are held for the purpose of meeting short-term cash rather than for investment purposes 14 In cash equivalents, what is important is the date of purchase which should be 3 months or less before maturity 15 Financial asset held for trading or trading securities 16 Nontrade receivable should be classified as current asset if collectible within 1 year, operating cycle notwithstanding 17 Current assets:...