ACCA AAA OnDemand Courses - 中信楷岚 - Kaplan-CITIC

ISA 1 presentation of fianancial statements:

provide formats for classfication and presentation of fiancial statements and disclosures.
Items of OCI must be classfied as either ites that may be reclassfied to profit or loss in future periods, or thosw which will not be reclassfied in future period

ISA 2 inventories

defination:items in the ordinary course of business(oe associaled raw materials and work-in-progress)
valued at lower of cost and estimated selling price less selling cost for each seperate item or product
the cost of inventory includes all cost of getting the items or producr to current location and condition

ISA 7 statement of cash flows

reconciles cash and cash equivalents year -on -year

* cash equivalents are short-tern, highly liquid and readily convertible to a know amount of cash

three standard headings

*operating activities

*Investing activities

*Financing activities

cash generated from operations can be derived using the direct method or the indirect method

*indirect method begins with profit before tax and the adjests it for non-cash items, as well as for items that related to investing or financing activities

IAS 8 Accounting policies, changes in accounting estimates and errors

Accounting policies should be appropriate and relevant, be cosisitentlu applied and be disclosed
Changes in estimates are taken to statenet of profit or loss in current and future perios
Changes in accounting policies and the correction of prior errors require the restatement of comparative information and opening reserves

IAS 10 events after the reporting period

definition- those events between the reporting date and date of approval of fianancial statents
adjuseing events- those which provide additional evidence of the situation existing at the report date e.g. insolvency of major debetor
non-adjusting events - those which do not provide evidence of situation at the reporting date ,but may become adjusting event if going concern basis threatened

IAS 12 Income taxes

Deferred tax is accounted for on tenporary differnces (difference between thw carrying abount and tax base of asset and liabilities)

if the tax base is higher then = deferred tax asset

if the tax base is lower then = deferred tax liabilities

Temporary differences include:

IAS 16 Property, Plant & equipment

valued at cost= all expenditure attributable to bringing the asset into working condition as well as directly attributable borrowing cost

subsequent expenditure is capitalisaed

revaluation：

revalue all items in the same ckass
gains are recorded in OCI(other comprehensive invome)
losses are recorded in OCI untill the revaluation reserves is reduced to nil. any excess loss is recored in P/L

IAS 19 Employee benfits

not in FR syllabus
defined contribution scheme:

1. definition = no further obligation exists to contribute further funds to pension schem

2. recognise annual cost of pension contribution in P/L

defined benifit scheme

1. Net interests component charged in P/L in the year---- discountted to net obligation at start yesr

2. the service component is charged to P/L in the year:

current service cost

+ past service costs recognised in full when announced

+ gains and losses on curtailments and settlements

3. remeasurement components presented in other comperhensive income.

IAS 20 Accouting for government grants

Match revenue grant against expense to which they relate
match capital grants with assets to which they related in one of two ways:

1. recognise the grant as deffered income and then release it to P/L over the usefull life of the asset

reduce the cost of the asset by the grant received

IAS 21 the effects of changes in foreign exchange rate:

1. functional currency is the currency of the primary economic environment where the entity operates:

subsidiary will have same functional currency as parents if it has little autonomy
determined based primary factors, such as on currency of sales and purchases
if inconclusive considory secondary factors, such as currency of financing

rules in individual financial statements:

using exchange rate rulling at the date of transation to record transaction in overseas currency
montary items are re-translated as SOFP rate with gain or loss to P/L
Non-monetary items(e.g. PPE ,inventory) are not restated

rules in group finacial statements：