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No3 - Analyze Frs
No3 - Analyze Frs
No3 - Analyze Frs
Objective Study
2010
17 October
To prescribe the accounting treatment of revenue arising from certain types of transaction and
events. The primary issue in accounting for revenue is determining when to recognize revenue.
This Standard identifies the circumstances in which these criteria will be met, therefore revenue
will be recognized. It also provides practical guidance on the application of these criteria.
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
CHAPTER 2: FRS 5(PART 2)-NON CURRENT ASSETS HELD FOR SALE
AND DISCONTINUED OPERATIONS
Objective Study
To specify the accounting for assets held for sale and the presentation and disclosure of
discontinued operations. Specifically, the requirements of the FRS 5 are:
a) Assets that meet the criteria to be classified as held for sale are to be measured at the
lower of carrying amount and fair value, less costs to sell and depreciation on such assets
to cease; and
b) Assets that meet criteria to be classified as held for sale are to be presented separately on
the face on the balance sheet. The results of discontinued operations should be presented
separately in the income statement.
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
Objectives Study
To prescribe the criteria for selecting and changing accounting policies, together with the
accounting treatment and disclosure of changes in accounting policies, changes in accounting
estimates and corrections of errors. The standard is intended to enhance the relevance and
reliability of an entity’s financial statements and the comparability of those financial statements
over time and with the financial statements of other entities.
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
Objective Study
To prescribe when an entity should adjust its financial statements for events after the balance
sheet date; and the disclosures that an entity should give regarding the date when the financial
statements were authorized for issue and about events after the balance sheet date. This standard
also specifies that if events after the balance sheet date show that a going concern assumption is
not appropriate; the entity should not prepare its financial statements on a going concern basis.
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
ASSETS
Objective Study
a) Ensure that proper recognition criteria and measurement bases are applied to provisions,
contingents liabilities, and contingents assets; and
b) Suitable information is disclosed in the notes to enable users to understand their nature,
timing and amount
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
Objective Study
This FRS deal with the principal issue in accounting for income taxes of how to account for the
current and future tax consequence of:
a) The future recovery(settlement) of the carrying amount of assets (liabilities) that are
recognized in an entity’s balance sheet; and
b) Transactions and other events of current period that are recognized in an entity’s financial
statements.
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)
Objective Study
To prescribe the presentation of a cash flow statement by a reporting entity. A cash flow
statements provides information about historical changes in cash and cash equivalent during the
reporting period. A cash flow statement is necessary to help users in making assessment on
liability of an entity to generate cash and utilize it, and assist users in making an economic event.
2010
17 October
(Source from FRS Requirement & Applications in Financial Accounting & Reporting, PEARSON)