MODULE 1: DEVELOPMENT OF FINANCIAL REPORTING FRAMEWORK

INTRODUCTION – THE HISTORY AND DEFINITION OF ACCOUNTING

HC - Acquisition cost

FV – SELLING COST

Current cost – when you are replacing an asset

Realizable value- inventories (impairment) A/R (Allowance for doubtful of accounts)

VALUATION BY FACT

FUND THEORY- NON-PROFIT (NGO’s UNRESTRICTED, RESTRICTED,)

REALIZATION-

Relevance – capable of making a difference in the user’s decisions. The financial information is relevant
when it has a predictive value and confim

Intercomparability – results offs from other corporations same line of business.

Intracomparability – results of fs prom other periods

TIME – YOU WERE ABLE TO PREPARE THE FINANCIAL STATEMENTS

UNDERSTANDABILITY –

CLASSIFIED (CURRENT, NON-CURRENT) PRESENTED, CLEARLY, AND CONCISELY.

Chapter 3:

Conceptual framework – financial statements

IFRS BOX – cash flows, contribution/distribution, assumptions, estimates