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Acounting Theory Task Gama
Acounting Theory Task Gama
Acounting Theory Task Gama
NIM : C1L013009
ACCOUNTING THEORY ASSIGNMENT
CLASSIFICATION
RECOGNITION
IAS No.1
These components are
recognized in other
comprehensive income
and are not reclassified
to profit or loss in
subsequent periods.
Changes in revaluation
surplus may be
transferred to retained
earnings in subsequent
periods as the asset is
used or when it is
derecognized (see IAS
16 and IAS 38).Analysis
of expenses recognized
in profit or loss using a
classification based on
either their nature or
their function within the
entity, whichever
provides information
that is reliable and more
relevant. The amount of
dividends recognized as
distributions to owners
during the period, and
the related amount of
dividends per share.
IAS No.2
When inventories are sold,
the carrying amount of
those inventories shall be
recognized as an expense in
the period in which the
related revenue is
recognized. The amount of
any write-down of
inventories to net realizable
value and all losses of
inventories shall be
recognized as an expense in
the period the write-down or
loss occurs. The amount of
any reversal of any writedown of inventories, arising
from an increase in net
realizable value, shall be
recognized as a reduction in
the amount of inventories
recognized as an expense in
the period in which the
reversal occurs.
IAS No.7
Some transactions, such
as the sale of an item of
plant, may give rise to a
gain or loss that is
included in recognized
profit or loss. Only
expenditures that result
in a recognized asset in
the statement of
financial position are
eligible for
classification as
investing activities. The
total amount of interest
paid during a period is
disclosed in the
statement of cash flows
whether it has been
recognized as an
expense in profit or loss
or capitalized in
accordance with IAS 23
Borrowing Costs.
IAS No.8
To the extent that a change in an
accounting estimate gives rise to
changes in assets or liabilities, or
relates to an item of equity, it is
recognised by adjusting the
carrying amount of the related
asset, liability or equity item in
the period. Prospective
application of a change in
accounting policy and of
recognising the effect of a change
in an accounting estimate,
respectively,are recognising the
effect of the change in the
accounting estimate in the current
and future periods.The effect of a
change in an accounting estimate,
shall be recognised prospectively
by including it in profit or loss in
the period of the change.A change
in the estimate of the amount of
bad debts affects only the current
periods profit or loss and
therefore is recognised in the
current period. The effect of the
change relating to the current
period is recognised as income or
expense in the current period. The
effect on future periods is
IAS No.10
An entity shall adjust the
amounts recognized in its
financial statements to
reflect adjusting events
after the reporting
period. An entity shall
not adjust the amounts
recognized in its
financial statements to
reflect non-adjusting
events after the reporting
period. If dividends are
declared after the
reporting period but
before the financial
statements are authorized
for issue, the dividends
are not recognized as a
liability at the end of the
reporting period because
no obligation exists at
that time.
MEASUREMENT
The classification of
items in the financial
statements shall be
retained from one period
to the next. Comparative
information shall be
included for narrative
and descriptive
information when it is
relevant to an
understanding of the
current periods financial
statements.
Each material class of
similar items shall be
presented separately in
the financial statements.
Items of a dissimilar
nature or function shall
be presented separately
unless they are
immaterial.
Inventories shall be
measured at the lower of
cost and net realisable
value.
Cost of inventories
The cost of inventories shall
comprise all costs of
purchase, costs of
conversion and other costs
incurred in bringing the
inventories to their
present location and
condition.
An investment entity, as
defined in IFRS 10
Consolidated Financial
Statements, need not
apply paragraphs 40(c)
or 40(d) to an
investment in a
subsidiary that is
required to be measured
at fair value through
profit or loss. Cash
flows arising from
changes in ownership
interests in a subsidiary
that do not result in a
loss of control shall be
classified as cash flows
from financing
activities, unless the
subsidiary is held by an
investment entity, as
defined in IFRS 10, and
is required to be
measured at fair value
through profit or loss.
Changes in ownership
interests in a subsidiary
that do not result in a
loss of control, such as
the subsequent purchase
or sale by a parent of a
DISCLOSURE
subsidiarys equity
instruments, are
accounted for as equity
transactions (see IFRS
10), unless the
subsidiary is held by an
investment entity and is
required to be measured
at fair value through
profit or loss.
The separate disclosure
of cash flows arising
from investing activities
is important because the
cash flows represent the
extent to which
expenditures have been
made for resources
intended to generate
future income and cash
flows. The separate
disclosure of cash flows
arising from financing
activities is important
because it is useful in
predicting claims on
future cash flows by
providers of capital to
the entity. An entity
shall disclose, together
with a commentary by
management, the
amount of significant
cash and cash
equivalent balances held
by the entity that are not