Accounting Research (1st Sem SY 2020-2021) Assignment 26

Javier, Jaypee T. January 13, 2021

Exercise 3

Access the AICPA IFRS resource page (www.ifrs.com). What are two featured IFRS news
items?

- Getting to grips with IFRS 16? No time to waste

January 16, 2020 - Any company with a portfolio of leased assets will be working
through the full implications of the new standard, IFRS 16 Leases, applicable for the first
time in 2019.
- IFRS news archive
January 13, 2020 - Need-to-know information on international standards in the
accounting and regulatory space.1

Exercise 10

Open up an IAS or IFRS.

a. What are the major organizational parts of the authority (placed in bold)?

b. Compare your answer in (a) to the major organizational parts of an IFRIC or SIC.

c. Are (a) and (6), for the most part, the same? If yes, how so? If not, how do they differ?

a. Major organizational parts of the authority are:

 Monitoring Board
 Trustees of IFRS Foundation
 International accounting standard board
 IFRS Interpretation committee
b. IFRIC is the implementing committee of IFRS. it consists of 14 members appointed by
IFRS foundation Trustees.
c. IFRIC is part of IFRS structure itself. so, the most parts cannot be same. IFRIC consists
only of members appointed by IFRS foundation Trustees. whereas IFRS structure is
having a large structure having many members, of which IFRIC is just a part.

Exercise 11

Use eIFRS to identify the accounting authority (citation) governing each of the following:

a. Service Concession Arrangements

b. Introduction of the Euro

c. Operating segments

d. Treasury share transactions

e. Agriculture

- a. IFRC 13
b. SIC 7
c. IFRS 8

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Accounting Research (1st Sem SY 2020-2021) Assignment 26
Javier, Jaypee T. January 13, 2021

d. IFRC 11 – IFRS 2
e. IAS 41

Exercise 14

Does IFRS have specific criteria (that is, bright lines) in determining whether to
classify a lease as a capital lease? Provide specific citation to support your answer.

- It was stated in AIS 17 Leases prescribes the accounting policies and disclosures
applicable to leases, both for lessees and lessors. Leases are required to be classified
as either finance leases (which transfer substantially all the risks and rewards of
ownership, and give rise to asset and liability recognition by the lessee and a receivable
by the lessor) and operating leases (which result in expense recognition by the lessee,
with the asset remaining recognized by the lessor).

Exercise 15

Is an entity required to account for a contract modification as a separate contract?

Provide specific citation to support your answer.

- As stated in IFRS 15-Revenue from contracts with Customer, it specifies when an IFRS
reporter will recognize revenue as well as requiring such entities to provide users of
financial statements with more informative, relevant disclosures. The standard provides
a single, principles based five-step model to be applied to all contracts with customers. It
was stated in this standard that a customer can apply all kinds of contracts.2

Exercise 17

Use the glossary to locate the definition of materiality.

a. What it the definition?

b. What authority can it be found in?

a. Information is material if omitting, misstating or obscuring it could reasonably be

expected to influence decisions that the primary users of a specific reporting entity’s
general purpose financial statements make on the basis of those financial statements.
b. IAS 1-Presentation of Financial Statements3
IAS 8- Accounting Policies, Changes in Accounting Estimates and Errors4

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Accounting Research (1st Sem SY 2020-2021) Assignment 26
Javier, Jaypee T. January 13, 2021

References:

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1
https://www.ifrs.com/
2
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/
3
https://www.ifrs.org/issued-standards/list-of-standards/ias-1-presentation-of-financial-statements/
4
https://www.ifrs.org/issued-standards/list-of-standards/ias-8-accounting-policies-changes-in-accounting-estimates-and-
errors/