ACCN3 Chapter 7
- Created by: g.robinson13
- Created on: 21-11-16 14:37
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- Chapter 7 Accounting Standards
- Reasons for using IAS's
- To ensure accountants follow the same set of rules
- Makes window dressing more difficult
- To meet with the duty of directors to ensure that financial statements comply with accounting standards
- To meet with the auditors report requirements to state that the financial statements comply with accounting standards.
- Benefits of IAS's
- Consistency between accounting periods
- Comparability between accounting periods and other business'
- To standardise financial statements internationally
- Companies who operate in several countries know the same rules have been applied
- Company Law
- Regulated by the Companies Acts
- Companies must state that the financial statements have been prepares in accordance with applicable accounting standards.
- Reasons for changes must be given and detailed,
- IAS's
- IAS 1 - Presentation of Financial Statements
- IAS 2 - Inventories
- IAS 7 - Statement of Cash Flows
- IAS 8 - Accounting Policies, Changes in Accouting Estimates and Errors
- IAS 10 - Events after the Reporting Period
- IAS 16 - Property, Plant and Equipment
- IAS 18 - Revenue
- IAS 36 - Impairment of Assets
- IAS 37 - Provisions, Contingent Lianilities and Contingent Assets
- IAS 38 - Intangible Assets
- Reasons for using IAS's
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