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    Adi Ruzaini Di Eddy
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    The document is a tutorial on the framework of accounting that covers: 1. The conceptual framework for financial reporting which establishes the concepts and principles used in developing accounting standards. 2. The underlying assumptions in preparing accounting information such as accrual basis, going concern concept and consistency. 3. How materiality relates to providing relevant information by focusing on items that could influence decisions if omitted or misstated. 4. Identifying when qualitative characteristics of useful financial information like comparability and understandability may not be present in different business situations involving accounting method changes and complex hedging transactions.

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    The document is a tutorial on the framework of accounting that covers: 1. The conceptual framework for financial reporting which establishes the concepts and principles used in developing accounting standards. 2. The underlying assumptions in preparing accounting information such as accrual basis, going concern concept and consistency. 3. How materiality relates to providing relevant information by focusing on items that could influence decisions if omitted or misstated. 4. Identifying when qualitative characteristics of useful financial information like comparability and understandability may not be present in different business situations involving accounting method changes and complex hedging transactions.

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    227 views1 page

    Tutorial 2 1

    Uploaded by

    Adi Ruzaini Di Eddy
    The document is a tutorial on the framework of accounting that covers: 1. The conceptual framework for financial reporting which establishes the concepts and principles used in developing accounting standards. 2. The underlying assumptions in preparing accounting information such as accrual basis, going concern concept and consistency. 3. How materiality relates to providing relevant information by focusing on items that could influence decisions if omitted or misstated. 4. Identifying when qualitative characteristics of useful financial information like comparability and understandability may not be present in different business situations involving accounting method changes and complex hedging transactions.

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    of 1

    CIA 1001 – Introductory Accounting

    Semester 2, 2018/2019

    Tutorial 2 – Framework of Accounting


    1. What is the Conceptual Framework for Financial Reporting?

    2. What is the underlying assumptions in preparing accounting information?

    3. Explain how materiality is related to the provision of relevant information?

    4. For each of the following situation, identify the qualitative characteristics that may
    not be present, by providing appropriate justification for your answer:
    - Syarikat Permata has decided to issues the first quarter financial report only after
    the second quarter report has been prepared, in an effort that there are no long
    intervals in the between the issuance of the report.
    - Guna Industries switched from weighted average to FIFO in 2013 and switched back
    from FIFO to weighted average method in 2014 for inventories.
    - Normad Construction entered into several transactions for the purpose of hedging in
    the current period. However no disclosure were made with regards to these
    transactions to avoid confusion amongst users of financial statements as the
    transactions involved were complex.

    5. Dusun Pak Ngah is an eco-resort in Jelebu, Negeri Sembilan. Dusun Pak Ngah offers
    Guests a choice of ten kampung houses scattered within two acres of fruits and
    vegetables orchards. Facilities includes accommodations with breakfast, basic
    facilities for self catering, a barbeque pit and access to the natural swimming pool.
    Guests can enjoy guided jungle trekking and river rafting for additional charges.
    Fruits and vegetables from the orchard can be enjoyed free of charge within the
    Dusun area but are charged current market price for takeaways. Dusun Pak Ngah
    also provides lunch, dinner and food for barbeque with advanced orders and
    payments. All enquiries and bookings are made online. Payments are made in
    advance for confirmation of bookings. Cancellations made within 48 hours will be
    refunded with a 20 % cancelation fee.
    Required : Identify the different types of revenue for Dusun Pak Ngah and determine
    when each revenue should be recognized?

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