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Financial Accounting 3 Concepts
Financial Accounting 3 Concepts
17 Current assets:
a Cash and cash equivalents
b Held for trading
c Expected to be realized within 12months(nontrade receivables)
d Realized, sold, or consumed(trade receivable, inventory, prepayments)
18 Operating cycle- between processing of assets and their realization in cash
2 An entity whose financial statements comply with PFRS shall make an explicit and
unreserved statement of such compliance in the notes.
3 An entity cannot rectify inappropriate accounting policies either by disclosure of the
accounting policies used or by notes or explanatory information
12 Noncurrent liabilities:
a Noncurrent portion of a long-term debt
b Finance lease liability
c Deferred tax liability
d Long-term obligations to entity officers
e Long-term deferred revenue\
23 Control is the power to govern the financial and operating policies of an entity
24 Affiliates- parent, subsidiaries, fellow subsidiaries
25 Key management personnel-POSDICON
26 Close family members of individual are related parties
27 Related party transactions and outstanding balances are eliminated in the
preparation of Consolidated FS
28 Accounting recognition of a transfer of resources is normally based on the price
agreed upon between the parties. Between unrelated parties, there may be a
degree of flexibility in the price setting process
29 Close family members of an individual includes the spouse, children and
dependents.
30 Adjusting events:
a Bankruptcy of customers
b Sale of inventories gives evidence about NRV
31 Nonadjusting:
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