Beruflich Dokumente
Kultur Dokumente
Useful
Making a difference
Complete
Neutral
Without bias Information must not be manipulated
Able to distinguish between different accounting policies Able to make valid comparison of similar items
Corresponding information
Assure users that information faithfully represents the economic phenomena it purports to represent
VERIFIABILITY
TIMELINESS
Having information available to decisionmakers in time
Information
Classifying
Characterising
Presenting
Clearly
Concisely
What is business?
Business may be defined in various ways. Its purpose is to make a profit.
Sole trader
Partnership
Limited Company
business & owners are separate in laws have limited liability. Most owners can lose is amount of their investment in business
are expenses charge against profit relate to a particular accounting period, even though they have not yet been paid they are recorded in the accounting records and reported in the financial statements in computing profit revenue earned must be matched against expenditure incurred in earning it (matching convention)
Financial statements are required to give a fair presentation or present fairly in all material respects the financial results of the entity.
Compliance with IFRSs will almost always achieve this.
a.
b.
c.
Use of an inappropriate accounting treatment cannot be rectified either by disclosure of accounting policies or notes/explanatory material.
a)
Selection and application of accounting policies. Presentation of information in a manner which provides relevant, reliable, comparable and understandable information. Additional disclosures where required.
b)
c)
To maintain consistency, the presentation and classification of items in the financial statements should stay the same from one period to the next, except as follows:
(a)
There is a significant change in the nature of the operation or a review of the financial statements indicates a more appropriate presentation. A change in presentation is required by an IFRS.
(b)