ias

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  • Created by: alex
  • Created on: 03-03-14 12:54
Why use international accounting standards?
* Provides a framework - 'rules' - for preparing financial statements * Ensures accountants follow the same set of rules * Reduce number of different accounting treatments * Meet the director's duty to ensure the FS comply with IAS
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And..
* Meet the auditor's report requirements
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Benefits of international accounting standards
Standardise financial statements internationally * Reduce variations of accounting treatments * Allow users of FS to make inter-firm comparisons
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What is IAS1?
Presentation of Financial Statements
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Main notes of IAS1
"to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions" * Requires compliance with accounting concepts
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IAS 2
Inventories
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Main notes of IAS 2
* Requires inventories are valued at the lower of cost and net realisable value * COST - purchase price + any costs incurred to bring product to where it is * NRV - estimated selling price - costs necessary to bring product into a selling condition
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IAS 7
Statement of cash flows
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Main content of IAS7
* Requires a cash flow statement is included in the FS
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Card 2

Front

And..

Back

* Meet the auditor's report requirements

Card 3

Front

Benefits of international accounting standards

Back

Preview of the front of card 3

Card 4

Front

What is IAS1?

Back

Preview of the front of card 4

Card 5

Front

Main notes of IAS1

Back

Preview of the front of card 5
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