Skip to document

SBR Chapter 1-4

BPP Workbook SBR Chapter 1-4
Course

Association of Chartered Certified Accountants - ACCA (PAC150)

181 Documents
Students shared 181 documents in this course
Academic year: 2018/2019
Uploaded by:
0followers
5Uploads
1upvotes

Comments

Please sign in or register to post comments.

Preview text

฀ ฀ ฀

฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀

,EARNING฀OBJECTIVES฀

/N฀COMPLETION฀OF฀THIS฀CHAPTER ฀YOU฀SHOULD฀BE฀ABLE฀TO฀
฀ 3YLLABUS฀
REFERENCE฀NO฀

$ISCUSS฀THE฀IMPORTANCE฀OF฀THE฀Conceptual Framework for Financial Reporting฀IN฀ UNDERPINNING฀THE฀PRODUCTION฀OF฀ACCOUNTING฀STANDARDS฀

"A ฀
$ISCUSS฀THE฀OBJECTIVES฀OF฀FINANCIAL฀REPORTING ฀INCLUDING฀DISCLOSURE฀OF฀INFORMATION ฀

THAT฀CAN฀BE฀USED฀TO฀HELP฀ASSESS฀MANAGEMENTgS฀STEWARDSHIP฀OF฀THE฀ENTITYgS฀ RESOURCES฀AND฀THE฀LIMITATIONS฀OF฀FINANCIAL฀REPORTING฀

"B ฀
$ISCUSS฀THE฀NATURE฀OF฀THE฀QUALITATIVE฀CHARACTERISTICS฀OF฀USEFUL฀FINANCIAL฀INFORMATION฀ "C ฀
%XPLAIN฀THE฀ROLES฀OF฀PRUDENCE฀AND฀SUBSTANCE฀OVER฀FORM฀IN฀FINANCIAL฀REPORTING฀ "D ฀
$ISCUSS฀THE฀HIGH฀LEVEL฀OF฀MEASUREMENT฀UNCERTAINTY฀THAT฀CAN฀MAKE฀FINANCIAL฀
INFORMATION฀LESS฀RELEVANT฀
"E ฀
%VALUATE฀THE฀DECISIONS฀MADE฀BY฀MANAGEMENT฀ON฀RECOGNITION ฀DERECOGNITION฀AND฀
MEASUREMENT฀
"F ฀
#RITICALLY฀DISCUSS฀AND฀APPLY฀THE฀DEFINITIONS฀OF฀THE฀ELEMENTS฀OF฀FINANCIAL฀STATEMENTS฀
AND฀THE฀REPORTING฀OF฀ITEMS฀IN฀THE฀STATEMENT฀OF฀PROFIT฀OR฀LOSS฀AND฀OTHER฀
COMPREHENSIVE฀INCOME฀
"G ฀
$ISCUSS฀THE฀IMPACT฀OF฀CURRENT฀ISSUES฀IN฀CORPORATE฀REPORTING฀INCLUDING฀4HE฀
FOLLOWING฀EXAMPLES฀ARE฀RELEVANT฀TO฀THE฀CURRENT฀SYLLABUS฀฀

฀4HE฀REVISED฀Conceptual Framework for Financial Reporting฀

&C ฀

%XAM฀CONTEXT฀

4HE฀ )!3"gS฀Conceptual Framework for Financial Reporting UNDERPINS฀ )NTERNATIONAL฀ &INANCIAL฀ 2EPORTING฀3TANDARDS฀AND฀IS฀FUNDAMENTAL฀TO฀THE฀3"2฀EXAM฀9OU฀ARE฀EXPECTED฀TO฀BE฀ABLE฀TO฀APPLY฀THE฀ PRINCIPLES฀IN฀THE฀Conceptual Framework฀TO฀ACCOUNTING฀ISSUES ฀SUCH฀AS฀AN฀ACCOUNTING฀ISSUE฀WHERE฀NO฀ )&23฀CURRENTLY฀EXISTS฀฀ ฀

฀4HE฀FINANCIAL

REPORTING฀FRAMEWORK

BPP Tutor Toolkit Copy

฀฀

฀

#HAPTER฀OVERVIEW฀

฀ ฀ ฀ ฀ ฀ ฀
฀฀
4HE฀FINANCIAL฀REPORTING฀
FRAMEWORK฀
฀&AIR฀PRESENTATION฀
AND฀COMPLIANCE฀
WITH฀)&23฀฀ ฀
฀4HE฀#ONCEPTUAL฀
&RAMEWORK฀FOR฀
&INANCIAL฀2EPORTING฀

BPP Tutor Toolkit Copy

฀฀

฀

4HE฀INSTANCES฀IN฀WHICH฀A฀PREPARER฀WILL฀USE฀THE฀Conceptual Framework฀TO฀DEVELOP฀AN฀ACCOUNTING฀ POLICY฀ARE฀EXPECTED฀TO฀BE฀RARE฀4HEREFORE฀THE฀Conceptual Framework฀WILL฀PRIMARILY฀BE฀USED฀BY฀THE฀ )!3"฀TO฀DEVELOP฀)&23S฀฀฀

฀#ONTENT฀

4HE฀Conceptual Framework฀IS฀DIVIDED฀INTO฀CHAPTERS฀฀

#HAPTER฀฀ 4HE฀OBJECTIVE฀OF฀GENERAL฀PURPOSE฀FINANCIAL฀REPORTING฀ #HAPTER฀฀ 1UALITATIVE฀CHARACTERISTICS฀OF฀USEFUL฀FINANCIAL฀INFORMATION฀

#HAPTER฀฀ &INANCIAL฀STATEMENTS฀AND฀THE฀REPORTING฀ENTITY฀ #HAPTER฀฀ 4HE฀ELEMENTS฀OF฀FINANCIAL฀STATEMENTS฀ #HAPTER฀฀ 2ECOGNITION฀AND฀DERECOGNITION฀ #HAPTER฀฀ -EASUREMENT฀ #HAPTER฀฀฀ 0RESENTATION฀AND฀DISCLOSURE฀ #HAPTER฀฀ #ONCEPTS฀OF฀CAPITAL฀AND฀CAPITAL฀MAINTENANCE฀

฀#HAPTER฀฀4HE฀OBJECTIVE฀OF฀GENERAL฀PURPOSE฀FINANCIAL฀REPORTING฀฀

%XISTING฀AND฀POTENTIAL฀INVESTORS ฀LENDERS฀AND฀OTHER฀CREDITORS฀ARE฀REFERRED฀TO฀AS฀THE฀gPRIMARY฀USERSg฀ OF฀FINANCIAL฀STATEMENTS฀PARA฀ ฀฀

฀ ฀ ฀ ฀ ฀ ฀

฀฀PARA฀ ฀

4HREE฀ASPECTS฀ARE฀RELEVANT฀TO฀USERS฀OF฀FINANCIAL฀STATEMENTS฀HERE฀PARAS฀n ฀

x฀&INANCIAL฀PERFORMANCE฀REFLECTED฀BY฀ACCRUAL฀ACCOUNTING฀

x฀&INANCIAL฀PERFORMANCE฀REFLECTED฀BY฀PAST฀CASH฀FLOWS฀

x฀#HANGES฀IN฀ECONOMIC฀RESOURCES฀AND฀CLAIMS฀NOT฀RESULTING฀FROM฀FINANCIAL฀ PERFORMANCE ฀EG฀A฀SHARE฀ISSUE฀

)LLUSTRATION฀฀

/N฀฀.OVEMBER฀8 ฀3YKES฀FAILED฀TO฀MAKE฀AN฀INTEREST฀PAYMENT฀TO฀3"฀"ANK฀AND฀CONSEQUENTLY฀ BREACHED฀THE฀CONDITIONS฀OF฀A฀LONG TERM฀LOAN฀AGREEMENT฀5NDER฀THE฀TERMS฀OF฀THE฀LOAN฀AGREEMENT ฀THE฀ LOAN฀BECAME฀IMMEDIATELY฀REPAYABLE฀/N฀฀$ECEMBER฀8 ฀3"฀"ANK฀AGREED฀THAT฀PROVIDED฀3YKES฀ MADE฀THE฀INTEREST฀PAYMENT฀BY฀฀!PRIL฀8 ฀IT฀WOULD฀NOT฀DEMAND฀IMMEDIATE฀REPAYMENT฀OF฀THE฀LOAN฀ !T฀THE฀REPORTING฀DATE฀OF฀฀$ECEMBER฀8 ฀3YKES฀CLASSIFIED฀THE฀LOAN฀AS฀A฀NON CURRENT฀LIABILITY฀4HE฀ LOAN฀IS฀FOR฀A฀LARGE฀SUM฀OF฀MONEY฀THAT฀IS฀MATERIAL฀TO฀THE฀FINANCIAL฀STATEMENTS฀OF฀3YKES฀฀

#HAPTERS฀n฀DISCUSS฀ INFORMATION฀PROVIDED฀IN฀ GENERAL฀PURPOSE฀ FINANCIAL฀STATEMENTS฀฀

#HAPTERS฀฀AND฀฀ DISCUSS฀INFORMATION฀ PROVIDED฀IN฀GENERAL฀ PURPOSE฀FINANCIAL฀ REPORTS฀

-ANAGEMENTgS฀STEWARDSHIP฀HOW฀EFFICIENTLY฀AND฀EFFECTIVELY฀ THE฀ENTITYgS฀MANAGEMENT฀AND฀GOVERNING฀BOARD฀HAVE฀DISCHARGED฀ THEIR฀RESPONSIBILITIES฀TO฀USE฀THE฀ENTITYgS฀ECONOMIC฀RESOURCES฀฀

4HE฀ECONOMIC฀RESOURCES฀OF฀THE฀ENTITY ฀CLAIMS฀AGAINST฀THE฀ENTITY฀AND฀
4O฀MAKE฀DECISIONS ฀ CHANGES฀IN฀THOSE฀RESOURCES฀AND฀CLAIMS฀฀
PRIMARY฀USERS฀
NEED฀INFORMATION฀
ABOUT฀฀
/BJECTIVE฀OF฀
GENERAL฀PURPOSE฀
FINANCIAL฀REPORTING฀฀
4O฀PROVIDE฀FINANCIAL฀INFORMATION฀ABOUT฀THE฀REPORTING฀ENTITY฀THAT฀IS฀USEFUL฀
TO฀EXISTING฀AND฀POTENTIAL฀INVESTORS ฀LENDERS฀AND฀OTHER฀CREDITORS฀IN฀
MAKING฀DECISIONS฀ABOUT฀PROVIDING฀RESOURCES฀TO฀THE฀ENTITY฀PARA฀ ฀

BPP Tutor Toolkit Copy

฀4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀ ฀

฀ ฀

2EQUIRED฀
$ISCUSS฀WHETHER฀THE฀CLASSIFICATION฀OF฀THE฀LOAN฀AS฀A฀NON

CURRENT฀LIABILITY฀PROVIDES฀USEFUL฀INFORMATION฀TO฀

INVESTORS฀
3OLUTION฀

!CCORDING฀TO฀THE฀Conceptual Framework ฀THE฀OBJECTIVE฀OF฀FINANCIAL฀REPORTING฀IS฀TO฀PROVIDE฀FINANCIAL฀ INFORMATION฀ABOUT฀THE฀ENTITY฀THAT฀IS฀USEFUL฀TO฀INVESTORS฀AND฀CERTAIN฀OTHER฀STAKEHOLDERS ฀IN฀MAKING฀ DECISIONS฀ABOUT฀PROVIDING฀RESOURCES฀TO฀THE฀ENTITY฀฀

2EPORTING฀THE฀LOAN฀AS฀NON CURRENT฀IS฀NOT฀USEFUL฀TO฀INVESTORS฀AS฀IT฀IS฀MISLEADING฀)F฀3YKES฀DOES฀NOT฀MAKE฀ THE฀INTEREST฀PAYMENT฀BY฀฀!PRIL฀8 ฀THE฀LOAN฀WOULD฀BECOME฀REPAYABLE฀IMMEDIATELY฀'IVEN฀THE฀ SIZE฀OF฀THE฀LOAN ฀THIS฀COULD฀AFFECT฀3YKESgS฀ABILITY฀TO฀CONTINUE฀AS฀A฀GOING฀CONCERN฀

฀฀#HAPTER฀฀1UALITATIVE฀CHARACTERISTICS฀OF฀USEFUL฀FINANCIAL฀

INFORMATION฀฀฀

฀&UNDAMENTAL฀QUALITATIVE฀CHARACTERISTICS฀PARAS฀n ฀

)NFORMATION฀IS฀USEFUL฀IF฀IT฀IS฀RELEVANT฀AND฀FAITHFULLY฀REPRESENTS฀WHAT฀IT฀PURPORTS฀TO฀REPRESENT฀฀

0RUDENCE฀IS฀THE฀EXERCISE฀OF฀CAUTION฀WHEN฀MAKING฀JUDGEMENTS฀UNDER฀CONDITIONS฀OF฀UNCERTAINTY
฀!PPLYING฀THE฀FUNDAMENTAL฀QUALITATIVE฀CHARACTERISTICS฀
 ฀฀ )DENTIFY฀THE฀ECONOMIC฀PHENOMENON฀
 ฀฀ )DENTIFY฀THE฀TYPE฀OF฀INFORMATION฀ABOUT฀IT฀THAT฀WOULD฀BE฀MOST฀RELEVANT฀
 ฀฀ $ETERMINE฀IF฀THAT฀INFORMATION฀IS฀AVAILABLE฀AND฀IF฀ IT฀WOULD฀GIVE฀A฀FAITHFUL฀REPRESENTATION฀)F฀SO ฀USE฀
THAT฀INFORMATION฀)F฀NOT ฀THEN฀IDENTIFY฀THE฀NEXT฀MOST฀RELEVANT฀INFORMATION฀AND฀APPLY฀3TEP฀฀AGAIN฀฀
4HE฀PROCESS฀ABOVE฀REFLECTS฀THE฀FACT฀THAT฀THE฀MOST฀RELEVANT฀INFORMATION฀MAY฀HAVE฀SUCH฀A฀HIGH฀LEVEL฀OF฀
MEASUREMENT฀ UNCERTAINTY฀ THAT ฀ INSTEAD ฀ THE฀ MOST฀ USEFUL฀ INFORMATION฀ IS฀ THAT฀ WHICH฀ IS฀ SLIGHTLY฀ LESS฀
RELEVANT ฀BUT฀IS฀SUBJECT฀TO฀LOWER฀MEASUREMENT฀UNCERTAINTY฀฀

฀%NHANCING฀QUALITATIVE฀CHARACTERISTICS฀PARAS฀n ฀

4HE฀ENHANCING฀QUALITATIVE฀CHARACTERISTICS฀ARE฀

x฀#OMPARABILITY฀ x฀6ERIFIABILITY฀ x฀4IMELINESS฀ x฀฀ 5NDERSTANDABILITY฀

&AITHFUL฀
REPRESENTATION
฀฀
!฀FAITHFUL฀REPRESENTATION฀REFLECTS฀ECONOMIC฀SUBSTANCE฀RATHER฀THAN฀LEGAL฀
FORM ฀AND฀IS฀

x฀#OMPLETE฀n฀ALL฀INFORMATION฀NECESSARY฀FOR฀UNDERSTANDING฀ x฀.EUTRAL฀n฀WITHOUT฀BIAS ฀SUPPORTED฀BY฀EXERCISE฀OF฀PRUDENCE฀ x฀&REE฀FROM฀ERROR฀n฀PROCESSES฀AND฀DESCRIPTIONS฀WITHOUT฀ERROR ฀DOES฀NOT฀ MEAN฀PERFECT

4HE฀Conceptual Framework฀IS฀ UNDERPINNED฀BY฀ THE฀FUNDAMENTAL฀ QUALITATIVE฀ CHARACTERISTICS

2ELEVANCE฀

x฀2ELEVANT฀INFORMATION฀IS฀CAPABLE฀OF฀MAKING฀A฀DIFFERENCE฀IN฀DECISIONS฀ MADE฀BY฀USERS฀)T฀HAS฀PREDICTIVE฀ANDOR฀CONFIRMATORY฀VALUE฀ x฀฀ #ONSIDER฀MATERIALITY฀INFORMATION฀IS฀MATERIAL฀IF฀OMITTING฀OR฀MISSTATING฀ IT฀COULD฀INFLUENCE฀DECISIONS฀OF฀PRIMARY฀USERS

5SEFULNESS฀OF฀INFORMATION฀IS฀
ENHANCED฀IF฀THESE฀CHARACTERISTICS฀
ARE฀MAXIMISED฀

BPP Tutor Toolkit Copy

฀4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀ ฀

฀ ฀

฀#HAPTER฀฀&INANCIAL฀STATEMENTS฀AND฀THE฀REPORTING฀ENTITY฀฀

฀&INANCIAL฀STATEMENTS฀
฀ ฀ ฀ ฀ ฀ ฀
฀5SEFUL฀FINANCIAL฀INFORMATION฀IS฀PRESENTED฀IN฀PARA฀ ฀
A ฀ 4HE฀STATEMENT฀OF฀FINANCIAL฀POSITION฀3/&0 ฀BY฀RECOGNISING฀ASSETS ฀LIABILITIES฀AND฀EQUITY฀
B ฀ 4HE฀STATEMENT฀OF฀PROFIT฀OR฀LOSS฀AND฀OTHER฀COMPREHENSIVE฀INCOME฀30,/#) ฀BY฀RECOGNISING฀
INCOME฀AND฀EXPENSES฀฀
C ฀ /THER฀STATEMENTS฀AND฀NOTES฀BY฀PRESENTING฀AND฀DISCLOSING฀INFORMATION฀ABOUT฀

x฀฀ 4HE฀NATURE฀OF฀RECOGNISED฀ITEMS฀AND฀ASSOCIATED฀RISKS฀ x฀฀ 4HE฀NATURE฀OF฀UNRECOGNISED฀ASSETS฀AND฀LIABILITIES฀AND฀ASSOCIATED฀RISKS฀ x฀฀ #ASH฀FLOWS฀ x฀฀ 4RANSACTIONS฀WITH฀EQUITY฀HOLDERS฀ x฀฀ -ETHODS ฀ASSUMPTIONS฀AND฀JUDGEMENTS฀USED฀TO฀ESTIMATE฀AMOUNTS฀PRESENTED฀OR฀DISCLOSED฀ &INANCIAL฀STATEMENTS฀ARE฀ ฀ ฀ ฀ ฀ ฀ ฀

PARAS฀n ฀

฀4HE฀REPORTING฀ENTITY฀PARAS฀n ฀

2EPORTING฀ENTITY฀!฀REPORTING฀ENTITY฀IS฀AN฀ENTITY฀THAT฀IS฀REQUIRED ฀OR฀CHOOSES ฀TO฀PREPARE฀FINANCIAL฀ STATEMENTS฀!฀REPORTING฀ENTITY฀CAN฀BE฀A฀SINGLE฀ENTITY฀OR฀A฀PORTION฀OF฀AN฀ENTITY฀OR฀CAN฀COMPRISE฀MORE฀ THAN฀ONE฀ENTITY฀!฀REPORTING฀ENTITY฀IS฀NOT฀NECESSARILY฀A฀LEGAL฀ENTITY฀PARA฀ ฀

฀ 2฀ ฀ ฀฀ ฀ ฀ ฀ ฀ ฀

4WO฀OR฀MORE฀ENTITIES฀NOT฀ALL฀
LINKED฀BY฀PARENT

SUBSIDIARY฀

RELATIONSHIP฀

+EY฀TERM฀

0ARENT฀AND฀ITS฀SUBSIDIARIES฀
0ARENT฀AS฀A฀SINGLE฀ENTITY ฀
#OMBINED฀FINANCIAL฀STATEMENTS฀
THESE฀ARE฀RARE฀AND฀WILL฀NOT฀BE฀
EXAMINED฀IN฀3"2
5NCONSOLIDATED฀FINANCIAL฀
STATEMENTS
2EPORTING฀ENTITY฀ &INANCIAL฀STATEMENTS฀
#ONSOLIDATED฀FINANCIAL฀STATEMENTS฀

0REPARED฀FOR฀฀

  • ฀฀ !฀PERIOD฀OF฀TIME฀
  • ฀฀ 7ITH฀COMPARATIVE฀ INFORMATION฀฀
  • ฀฀)NCLUDE฀INFORMATION฀ABOUT฀ TRANSACTIONS฀AFTER฀THE฀ REPORTING฀DATE฀IF฀NECESSARY฀฀

0RESENTED฀FROM฀

  • ฀฀ 4HE฀PERSPECTIVE฀OF฀THE฀ REPORTING฀ENTITY฀AS฀A฀WHOLE฀
  • ฀฀.OT฀FROM฀THE฀PERSPECTIVE฀OF฀ A฀PARTICULAR฀GROUP฀OF฀USERS฀฀

.ORMALLY฀PREPARED฀ON฀THE฀ ASSUMPTION฀THAT฀AN฀ENTITY฀IS฀A฀ GOING฀CONCERN฀AND฀WILL฀ CONTINUE฀IN฀OPERATION฀FOR฀THE฀ FORESEEABLE฀FUTURE฀฀

/BJECTIVE฀OF฀
FINANCIAL฀
STATEMENTS฀฀

4O฀PROVIDE฀FINANCIAL฀INFORMATION฀ABOUT฀THE฀REPORTING฀ENTITYgS฀ASSETS ฀ LIABILITIES ฀EQUITY ฀INCOME฀AND฀EXPENSES฀THAT฀IS฀USEFUL฀TO฀USERS฀OF฀FINANCIAL฀ STATEMENTS฀IN฀ASSESSING฀THE฀PROSPECTS฀FOR฀FUTURE฀NET฀CASH฀INFLOWS฀TO฀ THE฀REPORTING฀ENTITY฀AND฀IN฀ASSESSING฀MANAGEMENTgS฀STEWARDSHIP฀OF฀ THE฀ENTITYgS฀ECONOMIC฀RESOURCESPARA฀ 

BPP Tutor Toolkit Copy

฀฀

฀

7HERE฀A฀REPORTING฀ENTITY฀IS฀NOT฀A฀LEGAL฀ENTITY฀OR฀A฀GROUP฀LINKED฀BY฀PARENT

SUBSIDIARY฀RELATIONSHIPS ฀

THEN฀THE฀BOUNDARY฀OF฀A฀REPORTING฀ENTITY฀IS฀DRIVEN฀BY฀THE฀INFORMATION฀NEEDS฀OF฀THE฀USERS฀OF฀THE฀

REPORTING฀ENTITYgS฀FINANCIAL฀STATEMENTS฀฀

฀ #HAPTER฀฀4HE฀ELEMENTS฀OF฀FINANCIAL฀STATEMENTS฀

฀
%CONOMIC฀BENEFITS฀INCLUDE฀PARA฀ ฀

x฀#ASH฀FLOWS ฀SUCH฀AS฀RETURNS฀ON฀INVESTMENT฀SOURCES฀ x฀%XCHANGE฀OF฀GOODS ฀SUCH฀AS฀BY฀TRADING ฀SELLING฀GOODS ฀PROVISION฀OF฀SERVICES฀฀ x฀2EDUCTION฀OR฀AVOIDANCE฀OF฀LIABILITIES ฀SUCH฀AS฀PAYING฀LOANS฀ !N฀ESSENTIAL฀CHARACTERISTIC฀OF฀A฀LIABILITY฀IS฀THAT฀THE฀ENTITY฀HAS฀AN฀OBLIGATION฀

/BLIGATION฀!฀DUTY฀OR฀RESPONSIBILITY฀THAT฀THE฀ENTITY฀HAS฀NO฀PRACTICAL฀ABILITY฀TO฀AVOID฀PARA฀ ฀ !฀PRESENT฀OBLIGATION฀EXISTS฀AS฀A฀RESULT฀OF฀PAST฀EVENTS฀IF฀THE฀ENTITY฀HAS฀ALREADY฀OBTAINED฀ ECONOMIC฀BENEFITS฀OR฀TAKEN฀AN฀ACTION ฀AND฀AS฀A฀CONSEQUENCE ฀THE฀ENTITY฀WILL฀OR฀MAY฀HAVE฀TO฀TRANSFER฀ AN฀ECONOMIC฀RESOURCE฀THAT฀IT฀WOULD฀NOT฀OTHERWISE฀HAVE฀HAD฀TO฀TRANSFER฀PARA฀ ฀

)LLUSTRATION฀฀ )&23฀฀Leases฀REQUIRES฀A฀LESSEE฀TO฀RECOGNISE฀A฀RIGHT OF USE฀ASSET฀FOR฀EACH฀LEASE฀THEY฀ENTER฀INTO฀WITH฀ LIMITED฀EXCEPTIONS ฀!฀RIGHT OF USE฀ASSET฀IS฀CONSISTENT฀WITH฀THE฀DEFINITION฀OF฀AN฀ASSET฀IN฀THE฀Conceptual Framework฀AS฀A฀RESULT฀OF฀ENTERING฀INTO฀THE฀LEASE฀AGREEMENT฀PAST฀EVENT ฀THE฀LESSEE฀CAN฀DIRECT฀THE฀USE฀ OF฀THE฀LEASED฀ASSET฀CONTROL ฀IN฀THE฀COURSE฀OF฀BUSINESS฀IN฀ORDER฀TO฀DIRECTLY฀OR฀INDIRECTLY฀GENERATE฀ ECONOMIC฀BENEFITS฀฀ )&23฀฀ALSO฀REQUIRES฀THE฀RECOGNITION฀OF฀A฀LEASE฀LIABILITY ฀EQUIVALENT฀TO฀THE฀PRESENT฀VALUE฀OF฀FUTURE฀ LEASE฀PAYMENTS฀4HE฀LEASE฀LIABILITY฀MEETS฀THE฀Conceptual Framework฀DEFINITION฀OF฀A฀LIABILITY฀THE฀ LESSEE฀HAS฀A฀RESPONSIBILITY฀PRESENT฀OBLIGATION ฀AS฀A฀RESULT฀OF฀ENTERING฀INTO฀THE฀LEASE฀AGREEMENT฀PAST฀ EVENT ฀TO฀PAY฀THE฀LEASE฀RENTALS฀TRANSFER฀OF฀ECONOMIC฀BENEFITS ฀AS฀THEY฀BECOME฀DUE฀฀

!฀PRESENT฀ECONOMIC฀
RESOURCE฀CONTROLLED฀BY฀THE฀
ENTITY฀AS฀A฀RESULT฀OF฀PAST฀
EVENTS฀฀
!N฀ECONOMIC฀RESOURCE฀IS฀A฀
RIGHT฀THAT฀HAS฀THE฀
POTENTIAL฀TO฀PRODUCE฀
ECONOMIC฀BENEFITS฀
!฀PRESENT฀OBLIGATION฀
OF฀THE฀ENTITY฀TO฀
TRANSFER฀AN฀ECONOMIC฀
RESOURCE฀AS฀A฀RESULT฀OF฀
PAST฀EVENTS฀
%CONOMIC฀RESOURCES฀ #LAIMS฀
&INANCIAL฀POSITION฀
!SSET฀ ,IABILITY฀ %QUITY฀
4HE฀RESIDUAL฀
INTEREST฀IN฀THE฀
ASSETS฀OF฀THE฀ENTITY฀
AFTER฀DEDUCTING฀ALL฀ITS฀
LIABILITIES฀
IE฀CLAIMS฀THAT฀DO฀NOT฀
MEET฀THE฀DEFINITION฀OF฀
A฀LIABILITY ฀
PARA฀

+EY฀TERM฀

BPP Tutor Toolkit Copy

฀฀

฀

4HE฀STATEMENTS฀ARE฀LINKED฀BECAUSE฀OF฀THE฀USE฀OF฀DOUBLE฀ENTRY฀BOOKKEEPING฀RECOGNISING฀ONE฀ITEM฀
REQUIRES฀THE฀RECOGNITION฀OR฀DERECOGNITION฀OF฀ONE฀OR฀MORE฀OTHER฀ITEMS฀฀
%G฀
฀$EBIT฀EXPENSES฀ #REDIT฀ASSET฀ OR฀ #REDIT฀LIABILITY฀

฀2ECOGNISING฀AN฀ELEMENT฀PARAS฀n ฀

!N฀ITEM฀IS฀RECOGNISED฀IN฀THE฀FINANCIAL฀STATEMENTS฀IF฀

A ฀ 4HE฀ITEM฀MEETS฀THE฀DEFINITION฀OF฀AN฀ELEMENT฀ASSET ฀LIABILITY ฀INCOME ฀EXPENSE฀OR฀EQUITY ฀AND฀

B ฀ 2ECOGNITION฀OF฀THAT฀ELEMENT฀PROVIDES฀USERS฀OF฀THE฀FINANCIAL฀STATEMENTS฀WITH฀INFORMATION฀THAT฀IS฀ USEFUL ฀IE฀WITH฀

x฀2ELEVANT฀INFORMATION฀ABOUT฀THE฀ELEMENT฀ x฀!฀FAITHFUL฀REPRESENTATION฀OF฀THE฀ELEMENT฀

2ECOGNITION฀IS฀SUBJECT฀TO฀COST฀CONSTRAINTS฀THE฀BENEFITS฀OF฀THE฀INFORMATION฀PROVIDED฀BY฀RECOGNISING฀ AN฀ELEMENT฀SHOULD฀JUSTIFY฀THE฀COSTS฀OF฀RECOGNISING฀THAT฀ELEMENT฀฀

)LLUSTRATION฀฀

4HE฀PREVIOUS฀Conceptual Framework REQUIRED฀AN฀ELEMENT฀TO฀BE฀RECOGNISED฀IF฀฀฀

A ฀ 4HE฀INFLOW฀OR฀OUTFLOW฀OF฀FUTURE฀ECONOMIC฀BENEFITS฀WAS฀PROBABLE฀AND฀ B ฀ 4HE฀ITEM฀COULD฀BE฀MEASURED฀WITH฀RELIABILITY฀

(OWEVER ฀THESE฀CRITERIA฀WERE฀NOT฀APPLIED฀CONSISTENTLY฀WITHIN฀)&23S฀&OR฀EXAMPLE ฀DIFFERENT฀STANDARDS฀ USE฀DIFFERENT฀LEVELS฀OF฀PROBABILITY฀IN฀DETERMINING฀WHEN฀ELEMENTS฀SHOULD฀BE฀RECOGNISED฀฀

5NDER฀)!3฀฀Provisions, Contingent Liabilities and Contingent Assets ฀ONE฀OF฀THE฀CRITERIA฀FOR฀ RECOGNISING฀A฀PROVISION฀IS฀THAT฀OUTFLOWS฀SHOULD฀BE฀PROBABLE฀(OWEVER ฀CONTINGENT฀CONSIDERATION฀IN฀ RESPECT฀OF฀A฀BUSINESS฀COMBINATION฀UNDER฀)&23฀฀Business Combinations ฀IS฀RECOGNISED฀WHETHER฀OR฀NOT฀ IT฀IS฀PROBABLE฀)NSTEAD฀THE฀LEVEL฀OF฀UNCERTAINTY฀IS฀TAKEN฀INTO฀ACCOUNT฀IN฀THE฀MEASURE฀OF฀FAIR฀VALUE฀

)!3฀฀ALSO฀REQUIRES฀A฀PROVISION฀TO฀BE฀RELIABLY฀MEASURABLE฀BEFORE฀IT฀CAN฀BE฀RECOGNISED฀3OME฀PARTS฀ OF฀)!3฀฀Employee Benefits฀ALSO฀INCLUDE฀THE฀RELIABLE฀MEASUREMENT฀CRITERION฀(OWEVER ฀OTHER฀)&23S฀ DO฀NOT฀INCLUDE฀THIS฀CRITERION฀฀

4HE฀REVISED฀Conceptual Framework฀RECOGNITION฀CRITERIA฀REMOVES฀THE฀PROBABILITY฀AND฀RELIABILITY฀CRITERIA฀ AND฀REPLACES฀IT฀WITH฀RECOGNITION฀OF฀AN฀ELEMENT฀IF฀THAT฀RECOGNITION฀PROVIDES฀USERS฀WITH฀RELEVANT฀ INFORMATION฀THAT฀IS฀A฀FAITHFUL฀REPRESENTATION฀OF฀THAT฀ELEMENT฀7HILE฀THIS฀WILL฀NOT฀REMOVE฀THE฀ INCONSISTENCIES฀IN฀RECOGNITION฀CRITERIA฀THAT฀CURRENTLY฀EXIST฀ACROSS฀)&23S ฀IT฀DOES฀PROVIDE฀A฀BASIS฀FOR฀BOTH฀ THE฀)!3"฀TO฀CONSIDER฀WHEN฀DEVELOPING฀NEW฀STANDARDS฀AND฀REVISING฀EXISTING฀STANDARDS฀AND฀FOR฀ PREPARERS฀TO฀CONSIDER฀WHEN฀DEVELOPING฀ACCOUNTING฀POLICIES฀FOR฀WHICH฀NO฀ACCOUNTING฀STANDARD฀EXISTS฀฀

฀$ERECOGNITION฀

$ERECOGNITION฀NORMALLY฀OCCURS฀PARA฀ ฀

  • ฀&OR฀AN฀ASSET฀n฀WHEN฀CONTROL฀IS฀LOST฀฀
  • &OR฀A฀LIABILITY฀n฀WHEN฀THERE฀IS฀NO฀LONGER฀A฀PRESENT฀OBLIGATION฀

4HE฀REQUIREMENTS฀FOR฀DERECOGNITION฀AIM฀TO฀FAITHFULLY฀REPRESENT฀BOTH฀PARA฀ ฀฀

A ฀฀ !NY฀ASSETS฀AND฀LIABILITIES฀RETAINED฀AFTER฀DERECOGNITION฀AND฀฀ B ฀฀ 4HE฀CHANGE฀IN฀THE฀ENTITYS฀ASSETS฀AND฀LIABILITIES฀AS฀A฀RESULT฀OF฀DERECOGNITION฀

4O฀GIVE฀A฀FAITHFUL฀REPRESENTATION ฀IT฀MAY฀ALSO฀BE฀NECESSARY฀TO฀PROVIDE฀EXPLANATORY฀INFORMATION฀ANDOR฀ TO฀PRESENT฀SEPARATELY฀RELATED฀INCOMEEXPENSES฀AND฀RETAINED฀COMPONENTS฀IN฀THE฀FINANCIAL฀STATEMENTS฀฀

AT฀THE฀SAME฀TIME฀ OR฀

$ERECOGNISE฀PART฀OF฀A฀RECOGNISED฀ ASSET฀IF฀CONTROL฀OF฀THAT฀PART฀IS฀LOST฀

2ECOGNISE฀
AN฀EXPENSE฀
$ERECOGNISE฀฀
AN฀ASSET฀
2ECOGNISE฀฀
A฀LIABILITY฀

BPP Tutor Toolkit Copy

฀4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀ ฀

฀ ฀

฀#HAPTER฀฀-EASUREMENT฀

4HE฀Conceptual Framework฀DESCRIBES฀THE฀DIFFERENT฀MEASUREMENT฀BASES฀USED฀IN฀)&23S฀ AND฀THE฀FACTORS฀TO฀CONSIDER฀IN฀SELECTING฀A฀MEASUREMENT฀BASIS฀)&23S฀USE฀A฀MIXED฀ MEASUREMENT฀ APPROACH ฀WHICH฀MEANS฀THAT฀DIFFERENT฀MEASUREMENT฀BASES฀ARE฀ USED฀FOR฀DIFFERENT฀CLASSES฀OF฀ELEMENTS฀4HIS฀IS฀OPPOSED฀TO฀A฀SINGLE฀MEASUREMENT฀BASIS฀ IN฀WHICH฀ALL฀ITEMS฀ARE฀MEASURED฀USING฀THE฀SAME฀BASIS ฀EG฀ALL฀ITEMS฀ARE฀MEASURED฀AT฀ FAIR฀VALUE฀4HE฀)!3"฀BELIEVES฀PARA฀"# ฀THAT฀A฀MIXED฀MEASUREMENT฀APPROACH฀ PROVIDES฀THE฀MOST฀USEFUL฀INFORMATION฀TO฀PRIMARY฀USERS฀OF฀FINANCIAL฀STATEMENTS฀฀ )NDIVIDUAL฀)&23S฀SPECIFY฀WHICH฀PARTICULAR฀MEASUREMENT฀BASIS฀SHOULD฀BE฀USED฀IN฀MOST฀CIRCUMSTANCES฀ 4HE฀MEASUREMENT฀PRINCIPLES฀IN฀THE฀Conceptual Framework฀WILL฀THEREFORE฀MAINLY฀BE฀USED฀BY฀THE฀)!3"฀ TO฀ DEVELOP฀ 3TANDARDS฀ (OWEVER ฀ PREPARERS฀ OF฀ FINANCIAL฀ STATEMENTS฀ CAN฀ USE฀ THE฀ MEASUREMENT฀ PRINCIPLES฀TO฀HELP฀THEM฀CHOOSE฀A฀MEASUREMENT฀BASIS฀WHERE฀A฀CHOICE฀IS฀OFFERED฀IN฀A฀3TANDARD฀฀

฀-EASUREMENT฀BASES฀ 4HERE฀ARE฀TWO฀MAIN฀MEASUREMENT฀BASES฀฀ x฀(ISTORICAL฀COST฀AND฀฀ x฀#URRENT฀VALUE฀WHICH฀INCLUDES฀FAIR฀VALUE ฀VALUE฀IN฀USE ฀FULFILMENT฀VALUE฀AND฀CURRENT฀COST ฀

(ISTORICAL฀COST฀FOR฀AN฀ASSET฀IS฀THE฀COST฀THAT฀WAS฀INCURRED฀WHEN฀THE฀ASSET฀WAS฀ACQUIRED฀OR฀CREATED฀ AND ฀ FOR฀ A฀ LIABILITY ฀ IS฀ THE฀ VALUE฀ OF฀ THE฀ CONSIDERATION฀ RECEIVED฀ WHEN฀ THE฀ LIABILITY฀ WAS฀ INCURRED฀ (ISTORICAL฀COST฀IS฀UPDATED฀AS฀THE฀ASSET฀IS฀CONSUMED฀OR฀AS฀THE฀LIABILITY฀IS฀SETTLED฀!DDITIONALLY ฀IF฀AN฀ ASSET฀CARRIED฀AT฀HISTORICAL฀COST฀SUFFERS฀AN฀IMPAIRMENT฀LOSS ฀THE฀HISTORICAL฀COST฀CARRYING฀AMOUNT฀OF฀THE฀ ASSET฀IS฀ADJUSTED฀TO฀REFLECT฀THAT฀IMPAIRMENT฀LOSS฀

#URRENT฀VALUE฀USES฀INFORMATION฀AVAILABLE฀AT฀THE฀REPORTING฀DATE฀TO฀UPDATE฀THE฀CARRYING฀AMOUNTS฀OF฀ ASSETS฀AND฀LIABILITIES฀฀

&AIR฀VALUE฀&AIR฀VALUE฀IS฀THE฀PRICE฀THAT฀WOULD฀BE฀RECEIVED฀TO฀SELL฀AN฀ASSET ฀OR฀PAID฀TO฀TRANSFER฀A฀
LIABILITY ฀IN฀AN฀ORDERLY฀TRANSACTION฀BETWEEN฀MARKET฀PARTICIPANTS฀AT฀THE฀MEASUREMENT฀DATE฀PARA฀฀
AND฀)&23฀฀!PPENDIX฀!
฀
6ALUE฀IN฀USE฀6ALUE฀IN฀USE฀IS฀THE฀PRESENT฀VALUE฀OF฀THE฀CASH฀FLOWS ฀OR฀OTHER฀ECONOMIC฀BENEFITS ฀THAT฀
AN฀ENTITY฀EXPECTS฀TO฀DERIVE฀FROM฀THE฀USE฀OF฀AN฀ASSET฀AND฀FROM฀ITS฀ULTIMATE฀DISPOSAL฀PARA฀ ฀฀
&ULFILMENT฀VALUE฀&ULFILMENT฀VALUE฀IS฀THE฀PRESENT฀VALUE฀OF฀THE฀CASH ฀OR฀OTHER฀ECONOMIC฀RESOURCES ฀
THAT฀AN฀ENTITY฀EXPECTS฀TO฀BE฀OBLIGED฀TO฀TRANSFER฀AS฀IT฀FULFILS฀A฀LIABILITY฀PARA฀ ฀
#URRENT฀COST฀OF฀AN฀ASSET฀4HE฀CURRENT฀COST฀OF฀AN฀ASSET฀IS฀THE฀COST฀OF฀AN฀EQUIVALENT฀ASSET฀AT฀THE฀
MEASUREMENT฀DATE ฀COMPRISING฀THE฀CONSIDERATION฀THAT฀WOULD฀BE฀PAID฀AT฀THE฀MEASUREMENT฀DATE฀PLUS฀
THE฀TRANSACTION฀COSTS฀THAT฀WOULD฀BE฀INCURRED฀AT฀THAT฀DATE฀PARA฀ ฀
#URRENT฀COST฀OF฀A฀LIABILITY฀4HE฀CURRENT฀COST฀OF฀A฀LIABILITY฀IS฀THE฀CONSIDERATION฀THAT฀WOULD฀BE฀
RECEIVED฀FOR฀AN฀EQUIVALENT฀LIABILITY฀AT฀THE฀MEASUREMENT฀DATE฀MINUS฀THE฀TRANSACTION฀COSTS฀THAT฀WOULD฀BE฀
INCURRED฀AT฀THAT฀DATE฀PARA฀ ฀฀

฀4HE฀DEFINITION฀OF฀FAIR฀VALUE฀IN฀THE฀Conceptual Framework฀IS฀CONSISTENT฀WITH฀THAT฀IN฀)&23฀฀Fair Value Measurement฀฀

#URRENT฀COST฀AND฀HISTORICAL฀COST฀ARE฀BOTH฀ENTRY฀VALUES ฀THEY฀gREFLECT฀PRICES฀IN฀THE฀MARKET฀IN฀WHICH฀ THE฀ENTITY฀WOULD฀ACQUIRE฀THE฀ASSET฀OR฀WOULD฀INCUR฀THE฀LIABILITYg฀PARA฀ ฀&AIR฀VALUE ฀VALUE฀IN฀ USE฀AND฀FULFILMENT฀VALUE฀ARE฀EXIT฀VALUES฀฀ &AIR฀VALUE฀REFLECTS฀THE฀PERSPECTIVE฀OF฀MARKET฀PARTICIPANTS ฀WHEREAS฀VALUE฀IN฀USE฀AND฀FULFILMENT฀ VALUE฀REFLECT฀ENTITY SPECIFIC฀ASSUMPTIONS฀PARA฀ ฀

4HERE฀ARE฀SEVERAL฀AREAS฀OF฀ DEBATE฀ABOUT฀ MEASUREMENT฀2EFER฀TO฀THE฀ TECHNICAL฀ARTICLE฀ g-EASUREMENTg฀WRITTEN฀BY฀ THE฀3"2฀EXAMINING฀TEAM ฀ AVAILABLE฀IN฀THE฀%XAM฀ 2ESOURCES฀SECTION฀OF฀THE฀ !##!฀WEBSITE฀฀

+EY฀TERMS฀

BPP Tutor Toolkit Copy

฀4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀ ฀

฀ ฀

฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀
5SUALLY ฀THE฀MOST฀EFFICIENT฀WAY฀OF฀APPLYING฀THE฀FUNDAMENTAL฀QUALITATIVE฀CHARACTERISTICS฀IN฀ORDER฀TO฀
SELECT฀A฀MEASUREMENT฀BASIS฀IS฀TO฀FOLLOW฀THE฀STEPS฀GIVEN฀IN฀SECTION฀฀฀
 ฀฀ /THER฀FACTORS฀฀

x฀ #OST฀ CONSTRAINT฀ DO฀ THE฀ BENEFITS฀ OF฀ THE฀ INFORMATION฀ PROVIDED฀ BY฀ THE฀ SELECTED฀ MEASUREMENT฀BASIS฀JUSTIFY฀THE฀COSTS฀PARA฀ ฀ x฀ %NHANCING฀ QUALITATIVE฀ CHARACTERISTICS฀ EG฀ CONSISTENTLY฀ USING฀ THE฀ SAME฀ MEASUREMENT฀BASIS฀AIDS฀COMPARABILITY ฀VERIFIABILITY฀IS฀ENHANCED฀BY฀USING฀MEASURES฀THAT฀ CAN฀BE฀INDEPENDENTLY฀CORROBORATED฀PARAS฀ ฀ ฀฀฀

฀#HAPTER฀฀0RESENTATION฀AND฀DISCLOSURE฀

%FFECTIVE฀COMMUNICATION฀OF฀INFORMATION฀IN฀FINANCIAL฀STATEMENTS฀MAKES฀INFORMATION฀MORE฀RELEVANT ฀
CONTRIBUTES฀TO฀A฀FAITHFUL฀REPRESENTATION฀OF฀FINANCIAL฀POSITION฀AND฀PERFORMANCE฀AND฀ENHANCES฀
UNDERSTANDABILITY฀AND฀COMPARABILITY฀OF฀INFORMATION฀฀
%FFECTIVE฀PRESENTATION฀AND฀DISCLOSURE฀REQUIRES฀PARA฀ ฀
฀ ฀ ฀ ฀ ฀ ฀

฀0ROFIT฀OR฀LOSS฀AND฀OTHER฀COMPREHENSIVE฀INCOME฀PARAS฀n ฀

4HE฀STATEMENT฀OF฀PROFIT฀OR฀LOSS฀IS฀THE฀PRIMARY฀SOURCE฀OF฀INFORMATION฀ABOUT฀AN฀ENTITYgS฀PERFORMANCE฀ )N฀DEVELOPING฀3TANDARDS ฀THE฀)!3"฀WILL ฀IN฀PRINCIPLE ฀REQUIRE฀ALL฀INCOME฀AND฀EXPENSES฀TO฀BE฀INCLUDED฀ IN฀THE฀STATEMENT฀OF฀PROFIT฀OF฀LOSS฀(OWEVER ฀IN฀EXCEPTIONAL฀CIRCUMSTANCES ฀THE฀)!3"฀MAY฀DECIDE฀THAT฀ INCOME฀OR฀EXPENSES฀ARISING฀FROM฀A฀CHANGE฀IN฀THE฀CURRENT฀VALUE฀OF฀AN฀ASSET฀OR฀LIABILITY฀SHOULD฀BE฀ CLASSIFIED฀AS฀OTHER฀COMPREHENSIVE฀INCOME฀/#) ฀4HIS฀WILL฀ONLY฀BE฀THE฀CASE฀WHERE฀IT฀PROVIDES฀ MORE฀RELEVANT฀INFORMATION฀OR฀A฀MORE฀FAITHFUL฀REPRESENTATION฀฀

3IMILARLY ฀IN฀PRINCIPLE ฀/#)฀IS฀RECLASSIFIED฀TO฀PROFIT฀OR฀LOSS฀IN฀A฀FUTURE฀PERIOD฀WHEN฀DOING฀SO฀RESULTS฀IN฀ THE฀PROVISION฀OF฀MORE฀RELEVANT฀INFORMATION฀OR฀A฀MORE฀FAITHFUL฀REPRESENTATION฀(OWEVER ฀IF฀FOR฀ SOME฀ITEMS฀THERE฀IS฀NO฀CLEAR฀BASIS฀FOR฀DETERMINING฀WHEN฀THE฀APPROPRIATE฀FUTURE฀PERIOD฀WOULD฀BE ฀THE฀ )!3"฀MAY ฀IN฀DEVELOPING฀3TANDARDS ฀DECIDE฀THAT฀SPECIFIC฀ITEMS฀OF฀/#)฀SHOULD฀NOT฀BE฀RECLASSIFIED฀฀

&OCUSING฀ON฀PRESENTATION฀
AND฀DISCLOSURE฀OBJECTIVES฀
AND฀PRINCIPLES฀RATHER฀
THAN฀ON฀RULES฀
#LASSIFYING฀INFORMATION฀
BY฀GROUPING฀SIMILAR฀ITEMS฀
AND฀SEPARATING฀DISSIMILAR฀
ITEMS฀
!GGREGATING฀
INFORMATION฀APPROPRIATELY฀
SO฀THAT฀IT฀IS฀NOT฀OBSCURED฀
BY฀UNNECESSARY฀DETAIL฀OR฀
EXCESSIVE฀AGGREGATION฀
-EASUREMENT฀INCONSISTENCY฀5SING฀
DIFFERENT฀MEASUREMENT฀BASES฀FOR฀RELATED฀
ASSETS฀AND฀LIABILITIES฀CAN฀RESULT฀IN฀
MEASUREMENT฀INCONSISTENCY฀ACCOUNTING฀
MISMATCH ฀-ORE฀USEFUL฀INFORMATION฀MAY฀BE฀
PROVIDED฀BY฀SELECTING฀THE฀SAME฀MEASUREMENT฀
BASIS฀FOR฀RELATED฀ASSETS฀AND฀LIABILITIES฀
-EASUREMENT฀UNCERTAINTY ฀WHICH฀
ARISES฀WHEN฀A฀MEASURE฀MUST฀BE฀ESTIMATED฀
AND฀CANNOT฀BE฀DETERMINED฀BY฀OBSERVING฀
PRICES฀IN฀AN฀ACTIVE฀MARKET฀(IGH฀LEVELS฀OF฀
MEASUREMENT฀UNCERTAINTY฀MAY฀RESULT฀IN฀
INFORMATION฀THAT฀IS฀NOT฀A฀FAITHFUL฀
REPRESENTATION฀฀ PARA฀ ฀
&AITHFUL฀REPRESENTATION฀฀
IS฀AFFECTED฀BY

BPP Tutor Toolkit Copy

฀฀

฀

฀3TAKEHOLDER฀PERSPECTIVE฀
)NVESTORS฀TEND฀TO฀FOCUS฀THEIR฀ANALYSIS฀ON฀PROFIT฀AND฀LOSS฀RATHER฀THAN฀/#) ฀AND฀MANY฀ACCOUNTING฀RATIOS฀
ARE฀CALCULATED฀USING฀PROFIT฀OR฀LOSS฀FOR฀THE฀YEAR ฀RATHER฀THAN฀TOTAL฀COMPREHENSIVE฀INCOME฀!S฀SUCH ฀THE฀
CLASSIFICATION฀OF฀INCOME฀AND฀EXPENSES฀AS฀PROFIT฀OR฀LOSS฀OR฀AS฀/#)฀CAN฀POTENTIALLY฀HAVE฀A฀SIGNIFICANT฀
EFFECT฀ON฀HOW฀AN฀INVESTOR฀PERCEIVES฀THE฀PERFORMANCE฀OF฀THE฀ENTITY฀฀
!฀ COMMON฀ MISCONCEPTION฀ IS฀ THAT฀ PROFIT฀ OR฀ LOSS฀ IS฀ FOR฀ REALISED฀ GAINS฀ AND฀ LOSSES ฀ AND฀ /#)฀ FOR฀
UNREALISED฀(OWEVER ฀THIS฀DISTINCTION฀IS฀ITSELF฀CONTROVERSIAL฀AND฀THEREFORE฀OF฀LIMITED฀USE฀IN฀DETERMINING฀
THE฀PROFIT฀OR฀LOSS฀VERSUS฀/#)฀CLASSIFICATION฀

)T฀COULD฀BE฀ARGUED฀THAT฀/#)฀IS฀DEFINED฀IN฀OPPOSITION฀TO฀PROFIT฀OR฀LOSS฀n฀THAT฀IS ฀ITEMS฀THAT฀ARE฀NOT฀PROFIT฀ OR฀LOSS฀n฀OR฀EVEN฀THAT฀IT฀HAS฀BEEN฀USED฀AS฀A฀gDUMPING฀GROUNDg฀FOR฀ITEMS฀THAT฀ENTITIES฀DO฀NOT฀WISH฀TO฀ REPORT฀IN฀PROFIT฀OR฀LOSS฀2ECLASSIFICATION฀FROM฀/#)฀HAS฀BEEN฀SAID฀TO฀COMPROMISE฀THE฀RELIABILITY฀OF฀BOTH฀ PROFIT฀OR฀LOSS฀AND฀/#)฀ )N฀ ฀AS฀A฀RESULT฀OF฀A฀JOINT฀OUTREACH฀INVESTOR฀EVENT ฀THE฀)!3"฀WAS฀ASKED฀TO฀DEFINE฀WHAT฀FINANCIAL฀ PERFORMANCE฀IS ฀CLARIFY฀THE฀MEANING฀AND฀IMPORTANCE฀OF฀/#)฀AND฀HOW฀THE฀DISTINCTION฀BETWEEN฀PROFIT฀OR฀ LOSS฀AND฀/#)฀SHOULD฀BE฀MADE฀IN฀PRACTICE฀)&23฀&OUNDATION ฀ ฀P ฀ ฀4HE฀REVISED฀Conceptual Framework฀DOES฀GO฀SOME฀WAY฀TO฀ADDRESS฀THESE฀ISSUES ฀HOWEVER ฀IT฀DOES฀NOT฀DEFINE฀THE฀CONCEPTS฀OF฀ PROFIT฀OR฀LOSS฀SO฀SOME฀OF฀THESE฀QUESTIONS฀REMAIN฀UNANSWERED฀฀

฀#HAPTER฀฀#ONCEPTS฀OF฀CAPITAL฀AND฀CAPITAL฀MAINTENANCE฀

4HE฀CONCEPT฀OF฀CAPITAL฀MAINTENANCE฀LINKS฀THE฀CONCEPTS฀OF฀CAPITAL฀AND฀THE฀CONCEPTS฀OF฀PROFIT฀฀

x฀4HE฀MEASUREMENT฀OF฀PROFIT฀DEPENDS฀ON฀THE฀METHOD฀USED฀TO฀VALUE฀CAPITAL฀ x฀0ROFIT฀IS฀ONLY฀GENERATED฀IF฀THE฀CAPITAL฀AT฀THE฀END฀OF฀THE฀REPORTING฀PERIOD฀IS฀GREATER฀THAN฀THAT฀AT฀ THE฀START ฀IE฀ONLY฀INFLOWS฀OF฀ASSETS฀IN฀EXCESS฀OF฀AMOUNTS฀NEEDED฀TO฀MAINTAIN฀CAPITAL฀ARE฀PROFITS฀฀ 4WO฀CONCEPTS฀PARAS฀n ฀฀

฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀

x฀)F฀PRIMARY฀USERS฀ARE฀CONCERNED฀MAINLY฀WITH฀THE฀MAINTENANCE฀OF฀NOMINAL฀INVESTED฀CAPITAL ฀THEN฀ THE฀FINANCIAL฀CONCEPT฀OF฀CAPITAL฀SHOULD฀BE฀USED฀-OST฀ENTITIES฀ADOPT฀A฀FINANCIAL฀CONCEPT฀OF฀ CAPITAL฀ x฀)F฀PRIMARY฀USERS฀ARE฀CONCERNED฀MAINLY฀WITH฀THE฀OPERATING฀CAPABILITY฀OF฀THE฀ENTITY ฀A฀PHYSICAL฀ CONCEPT฀OF฀CAPITAL฀SHOULD฀BE฀ADOPTED฀฀

• ฀฀ #APITAL฀REFERS฀TO฀THE฀NET฀ASSETS฀OR฀EQUITY฀
OF฀THE฀ENTITY฀฀
• ฀฀ 0ROFIT฀IS฀MADE฀IF฀THE฀FINANCIAL฀AMOUNT฀OF฀
NET฀ASSETS฀AT฀THE฀END฀OF฀THE฀REPORTING฀
PERIOD฀IS฀GREATER฀THAN฀THE฀FINANCIAL฀
AMOUNT฀AT฀THE฀START ฀AFTER฀EXCLUDING฀
CONTRIBUTIONS฀FROM ฀AND฀DISTRIBUTIONS฀TO ฀
OWNERS฀฀
• #APITAL฀REFERS฀TO฀THE฀PRODUCTIVE฀
CAPACITY฀OF฀THE฀ENTITY
• ฀฀ 2EQUIRES฀THE฀USE฀OF฀THE฀CURRENT฀COST฀
BASIS฀OF฀MEASUREMENT฀฀
• ฀ 0ROFIT฀IS฀MADE฀IF฀THE฀OPERATING฀
CAPABILITY฀AT฀THE฀END฀OF฀A฀REPORTING฀
PERIOD฀IS฀GREATER฀THAN฀THAT฀AT฀THE฀START ฀
IE฀OVER฀AND฀ABOVE฀INCREASES฀DUE฀TO฀
CHANGES฀IN฀PRICES฀฀

3TAKEHOLDER PERSPECTIVE

&INANCIAL฀CAPITAL฀MAINTENANCE฀ 0HYSICAL฀CAPITAL฀MAINTENANCE฀

BPP Tutor Toolkit Copy

฀฀

฀

x฀$O฀NOT฀MEET฀THE฀DEFINITION฀OF฀FINANCIAL฀ASSETS฀AS฀THEY฀DO฀NOT฀GIVE฀A฀CONTRACTUAL฀RIGHT฀TO฀RECEIVE฀ CASH฀OR฀OTHER฀FINANCIAL฀ASSETS ฀฀

x฀$O฀NOT฀HAVE฀ANY฀PHYSICAL฀SUBSTANCE฀AND฀THEREFORE฀CANNOT฀BE฀ANY฀FORM฀OF฀TANGIBLE฀ASSETS฀ ฀ALTHOUGH฀FOR฀COMMODITY฀BROKER TRADERS฀THEY฀MAY฀MEET฀THE฀DEFINITION฀OF฀INVENTORIES฀BUT฀THIS฀IS฀ ฀BEYOND฀THE฀SCOPE฀OF฀3"2 ฀

x฀!RE฀THEREFORE฀PROBABLY฀INTANGIBLE฀ASSETS฀#RYPTOCURRENCIES฀APPEAR฀TO฀MEET฀THE฀CRITERIA฀IN฀ ฀ )!3฀฀Intangible Assets IN฀THAT฀THEY฀ARE฀IDENTIFIABLE ฀THEY฀ARE฀NON MONETARY฀AS฀THEY฀DO฀NOT฀ ฀RESULT฀IN฀FIXED฀OR฀DETERMINABLE฀AMOUNTS฀OF฀MONEY ฀AND฀DO฀NOT฀HAVE฀PHYSICAL฀SUBSTANCE

!฀RECENT฀REPORT฀BY฀%9฀COMMENTED฀THAT฀g4HE฀NUANCED ฀CONSTANTLY฀EVOLVING฀NATURE฀OF฀THE฀CRYPTO ASSET฀ PHENOMENON ฀COUPLED฀WITH฀THE฀LACK฀OF฀RELEVANT฀FORMAL฀ACCOUNTING฀PRONOUNCEMENTS ฀PRESENTS฀COMPLEX฀ CHALLENGES฀FOR฀PREPARERS฀OF฀FINANCIAL฀INFORMATIONg฀ ฀P ฀฀

4HE฀CHALLENGES฀PRESENTED฀BY฀THIS฀AREA฀OF฀ACCOUNTING฀ARE฀COMPLEX฀AND฀THE฀CURRENT฀DISCUSSION฀FOCUSES฀ ON฀APPLYING฀EXISTING฀)&23S฀RATHER฀THAN฀APPLYING฀THE฀Conceptual Framework฀4HIS฀IS฀EXPECTED฀AS฀THE฀ )!3"฀ANTICIPATES฀THE฀USE฀OF฀THE฀Conceptual Framework฀BY฀A฀PREPARER฀TO฀DEVELOP฀AN฀ACCOUNTING฀ POLICY฀TO฀BE฀RARE฀฀

%THICS฀NOTE฀

%THICS฀IS฀A฀KEY฀ASPECT฀OF฀THE฀SYLLABUS฀FOR฀THIS฀PAPER฀%THICAL฀ISSUES฀CAN฀BE฀EXAMINED฀IN฀ANY฀PART฀OF฀THE฀ PAPER฀AND฀AT฀LEAST฀ONE฀QUESTION฀WILL฀INCLUDE฀ETHICAL฀ISSUES฀FOR฀DISCUSSION฀!฀REVISION฀OF฀ETHICAL฀ PRINCIPLES฀FROM฀!##!gS฀Code of Ethics and Conduct฀IS฀COVERED฀IN฀#HAPTER฀฀n฀0ROFESSIONAL฀AND฀ ETHICAL฀DUTY฀OF฀THE฀ACCOUNTANT฀9OU฀NEED฀TO฀BE฀ALERT฀FOR฀ACCOUNTING฀TREATMENTS฀THAT฀MAY฀BE฀BEING฀USED฀ TO฀ACHIEVE฀A฀PARTICULAR฀ACCOUNTING฀EFFECT฀SUCH฀AS฀OVERSTATING฀REVENUE ฀PROFIT฀OR฀ASSETS ฀

3OME฀POTENTIAL฀ETHICAL฀ISSUES฀THAT฀COULD฀COME฀UP฀INCLUDE฀

x฀-ISUSE฀OF฀gTRUE฀AND฀FAIR฀OVERRIDEg฀)!3฀ ฀WHEN฀IT฀IS฀NOT฀APPROPRIATE฀TO฀USE฀IT฀

x฀!PPLICATION฀OF฀Conceptual Framework฀PRINCIPLES฀WHICH฀RESULT฀IN฀A฀DIFFERENT฀ACCOUNTING฀ TREATMENT฀TO฀THAT฀REQUIRED฀BY฀A฀3TANDARD฀THE฀3TANDARD฀ALWAYS฀TAKES฀PRECEDENCE ฀

BPP Tutor Toolkit Copy

฀4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀ ฀

฀ ฀

#HAPTER฀SUMMARY฀

฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀
4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀
฀4HE฀#ONCEPTUAL฀&RAMEWORK฀FOR฀&INANCIAL฀2EPORTING฀

0URPOSE฀OF฀THE฀#ONCEPTUAL฀&RAMEWORK฀฀ s฀ !SSIST฀)!3"฀TO฀DEVELOP฀)&23S฀THAT฀ARE฀BASED฀ON฀CONSISTENT฀CONCEPTS฀ s฀ !SSIST฀PREPARERS฀TO฀DEVELOP฀ACCOUNTING฀POLICIES฀IN฀CASES฀WHERE฀THERE฀IS฀NO฀APPLICABLE฀)&23฀OR฀WHERE฀A฀CHOICE฀OF฀ POLICY฀EXISTS฀AND฀฀ s฀ !SSIST฀ALL฀IN฀THE฀UNDERSTANDING฀AND฀INTERPRETATION฀OF฀)&23S฀ #ONTENT฀

  1. The objective of general purpose financial reporting฀ ฀g4O฀PROVIDE฀FINANCIAL฀ INFORMATION฀ABOUT฀THE฀REPORTING฀ENTITY฀THAT฀IS฀USEFUL฀TO฀EXISTING฀AND฀POTENTIAL฀ INVESTORS ฀LENDERS฀AND฀OTHER฀CREDITORS฀IN฀MAKING฀DECISIONS฀ABOUT฀PROVIDING฀RESOURCES฀TO฀THE฀ENTITYg฀
  2. Qualitative characteristics of useful financial information฀ x &UNDAMENTAL฀QUALITATIVE฀CHARACTERISTICS฀RELEVANCE฀AND฀FAITHFUL฀REPRESENTATION฀฀ x %NHANCING฀QUALITATIVE฀CHARACTERISTICS฀COMPARABILITY ฀VERIFIABILITY ฀TIMELINESS ฀UNDERSTANDABILITY฀ ฀ x฀3UBJECT฀TO฀COST฀CONSTRAINT฀
  3. Financial statements and the reporting entity฀ x /BJECTIVE฀OF฀FINANCIAL฀STATEMENTS฀g4O฀PROVIDE฀FINANCIAL฀INFORMATION฀ABOUT฀THE฀REPORTING฀ENTITYS฀ASSETS ฀ LIABILITIES ฀EQUITY ฀INCOME฀AND฀EXPENSES฀THAT฀IS฀USEFUL฀TO฀USERS฀OF฀FINANCIAL฀STATEMENTS฀IN฀ASSESSING฀THE฀ PROSPECTS฀FOR฀FUTURE฀NET฀CASH฀INFLOWS฀TO฀THE฀REPORTING฀ENTITY฀AND฀IN฀ASSESSING฀MANAGEMENTS฀ STEWARDSHIP฀OF฀THE฀ENTITYS฀ECONOMIC฀RESOURCESg฀฀ x 'OING฀CONCERN฀IS฀ASSUMED฀ ฀ x฀2EPORTING฀ENTITY฀CAN฀BE฀PART฀OF฀AN฀ENTITY ฀A฀SINGLE฀ENTITY฀OR฀A฀GROUP฀OF฀ENTITIES฀
  4. The elements of financial statements฀ x !SSET฀gA฀PRESENT฀ECONOMIC฀RESOURCE฀CONTROLLED฀BY฀THE฀ENTITY฀AS฀A฀RESULT฀OF฀PAST฀EVENTSg฀ x ,IABILITY฀gA฀PRESENT฀OBLIGATION฀OF฀THE฀ENTITY฀TO฀TRANSFER฀AN฀ECONOMIC฀RESOURCE฀AS฀A฀RESULT฀OF฀PAST฀EVENTSg฀ x %CONOMIC฀RESOURCE฀gA฀RIGHT฀THAT฀HAS฀THE฀POTENTIAL฀TO฀PRODUCE฀ECONOMIC฀BENEFITSg฀ x )NCOME฀g)NCREASES฀IN฀ASSETS ฀OR฀DECREASES฀IN฀LIABILITIES ฀THAT฀RESULT฀IN฀INCREASES฀IN฀EQUITY ฀OTHER฀THAN฀THOSE฀ RELATING฀TO฀CONTRIBUTIONS฀FROM฀HOLDERS฀OF฀EQUITY฀CLAIMSg฀ x฀%XPENSES฀g$ECREASES฀IN฀ASSETS ฀OR฀INCREASES฀IN฀LIABILITIES ฀THAT฀RESULT฀IN฀DECREASES฀IN฀EQUITY ฀OTHER฀THAN฀THOSE฀ RELATING฀TO฀DISTRIBUTIONS฀TO฀HOLDERS฀OF฀EQUITY฀CLAIMSg฀
  5. Recognition and derecognition 2ECOGNISE฀AN฀ASSET ฀LIABILITY ฀INCOME ฀EXPENSE฀OR฀EQUITY฀WHEN฀ ฀฀)T฀MEETS฀THE฀DEFINITION฀OF฀AN฀ELEMENT฀ ฀฀)T฀PROVIDES฀RELEVANT฀INFORMATION฀THAT฀IS฀A฀FAITHFUL฀REPRESENTATION฀AT฀COST฀THAT฀DOES฀NOT฀OUTWEIGH฀BENEFITS฀ $ERECOGNISE฀ x฀!N฀ASSET฀WHEN฀CONTROL฀IS฀LOST฀ x฀ !฀LIABILITY฀WHEN฀THERE฀IS฀NO฀LONGER฀A฀PRESENT฀OBLIGATION฀
  6. Measurement฀฀ x -AY฀BE฀AT฀ n฀ (ISTORICAL฀COST฀฀ n฀ #URRENT฀VALUE฀INCLUDES฀FAIR฀VALUE ฀VALUE฀IN฀USE ฀FULFILMENT฀VALUE฀AND฀CURRENT฀COST ฀ &ACTORS฀TO฀CONSIDER฀IN฀SELECTING฀A฀MEASUREMENT฀BASISBASES฀ x .ATURE฀OF฀INFORMATION฀PROVIDED฀BY฀THE฀BASIS฀ x -UST฀BE฀USEFUL฀n฀RELEVANT฀AND฀FAITHFUL฀REPRESENTATION฀ x฀!LSO฀CONSIDER฀COST฀CONSTRAINT฀AND฀ENHANCING฀QUALITATIVE฀CHARACTERISTICS฀
฀&AIR฀PRESENTATION฀AND฀COMPLIANCE฀
WITH฀)&23S฀฀฀

)N฀ORDER฀TO฀ACHIEVE฀FAIR฀PRESENTATION ฀AN฀ENTITY฀MUST฀ COMPLY฀WITH฀ x )NTERNATIONAL฀&INANCIAL฀2EPORTING฀3TANDARDS฀)&23S ฀)!3S฀ AND฀)&2)#฀)NTERPRETATIONS ฀฀ x 4HE฀Conceptual Framework for Financial Reporting฀

BPP Tutor Toolkit Copy

฀4HE฀FINANCIAL฀REPORTING฀FRAMEWORK฀ ฀

฀ ฀

+NOWLEDGE฀DIAGNOSTIC฀

฀฀ &AIR฀PRESENTATION฀AND฀COMPLIANCE฀WITH฀)&23S฀฀ ฀
฀)N฀ORDER฀TO฀ACHIEVE฀FAIR฀PRESENTATION ฀AN฀ENTITY฀MUST฀COMPLY฀WITH฀

฀ x฀)NTERNATIONAL฀&INANCIAL฀2EPORTING฀3TANDARDS฀)&23S ฀)!3S฀AND฀)&2)#฀)NTERPRETATIONS ฀฀ ฀ x฀4HE Conceptual Framework for Financial Reporting

฀ 4HE฀#ONCEPTUAL฀&RAMEWORK฀

฀4HE฀Conceptual Framework฀ESTABLISHES฀THE฀OBJECTIVES฀AND฀PRINCIPLES฀UNDERLYING฀FINANCIAL฀ STATEMENTS฀AND฀UNDERLIES฀THE฀DEVELOPMENT฀OF฀NEW฀STANDARDS฀

฀4HE฀PURPOSE฀OF฀THE฀Conceptual Framework฀IS฀TO฀฀

฀ x฀!SSIST฀)!3"฀TO฀DEVELOP฀)&23S฀THAT฀ARE฀BASED฀ON฀CONSISTENT฀CONCEPTS฀

฀ x฀!SSIST฀PREPARERS฀TO฀DEVELOP฀ACCOUNTING฀POLICIES฀IN฀CASES฀WHERE฀THERE฀IS฀NO฀APPLICABLE฀)&23฀ OR฀WHERE฀A฀CHOICE฀OF฀POLICY฀EXISTS฀AND฀฀

฀ x฀!SSIST฀ALL฀IN฀THE฀UNDERSTANDING฀AND฀INTERPRETATION฀OF฀)&23S฀

฀4HE฀OBJECTIVE฀OF฀GENERAL฀PURPOSE฀FINANCIAL฀REPORTING฀IS฀TO฀PROVIDE฀FINANCIAL฀INFORMATION฀ABOUT฀THE฀ REPORTING฀ENTITY฀THAT฀IS฀USEFUL฀TO฀EXISTING฀AND฀POTENTIAL฀INVESTORS ฀LENDERS฀AND฀OTHER฀CREDITORS฀IN฀ MAKING฀DECISIONS฀ABOUT฀PROVIDING฀RESOURCES฀TO฀THE฀ENTITY฀฀

฀5SEFUL฀INFORMATION฀IS฀INFORMATION฀THAT฀IS฀RELEVANT฀AND฀A฀FAITHFUL฀REPRESENTATION฀OF฀WHAT฀IT฀PURPORTS฀ TO฀REPRESENT฀

฀!N฀ELEMENT฀SHOULD฀BE฀RECOGNISED฀IN฀THE฀FINANCIAL฀STATEMENTS฀WHEN฀

฀฀฀)T฀MEETS฀THE฀DEFINITION฀OF฀AN฀ELEMENT฀

฀฀฀)T฀PROVIDES฀RELEVANT฀INFORMATION฀THAT฀IS฀A฀FAITHFUL฀REPRESENTATION฀AT฀A฀COST฀THAT฀DOES฀NOT฀ OUTWEIGH฀BENEFITS฀

฀!฀RECOGNISED฀ELEMENT฀SHOULD฀BE฀DERECOGNISED฀WHEN฀

฀ x฀#ONTROL฀OF฀AN฀ASSET฀IS฀LOST฀ ฀ x฀4HERE฀IS฀NO฀LONGER฀A฀PRESENT฀OBLIGATION฀FOR฀A฀LIABILITY฀

฀%LEMENTS฀MAY฀BE฀MEASURED฀AT฀HISTORICAL฀COST฀OR฀CURRENT฀VALUE ฀AS฀SPECIFIED฀IN฀EACH฀PARTICULAR฀ )&23฀4HE฀)!3"฀WILL฀CONSIDER฀CERTAIN฀FACTORS฀WHEN฀DETERMINING฀THE฀MOST฀APPROPRIATE฀ MEASUREMENT฀BASIS฀FOR฀A฀3TANDARD฀฀

฀ ฀

BPP Tutor Toolkit Copy

฀฀

฀

&URTHER฀STUDY฀GUIDANCE฀

&URTHER฀READING฀

9OU฀SHOULD฀MAKE฀TIME฀TO฀READ฀THE฀FOLLOWING฀ARTICLES฀WHICH฀WERE฀WRITTEN฀BY฀A฀MEMBER฀OF฀THE฀3"2฀
EXAMINING฀TEAM฀4HEY฀ARE฀AVAILABLE฀IN฀THE฀STUDY฀SUPPORT฀RESOURCES฀SECTION฀OF฀THE฀!##!฀WEBSITE฀

Profit, loss and other comprehensive income

Concepts of profit or loss and other comprehensive income

Bin the clutter (Reducing disclosures)

Measurement

WWWACCAGLOBALCOM฀฀

BPP Tutor Toolkit Copy

Was this document helpful?

SBR Chapter 1-4

Course: Association of Chartered Certified Accountants - ACCA (PAC150)

181 Documents
Students shared 181 documents in this course
Was this document helpful?
฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Conceptual Framework for Financial Reporting฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Conceptual Framework for Financial Reporting฀฀฀฀฀Conceptual Framework for Financial Reporting ฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Conceptual Framework฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
BPP Tutor Toolkit Copy