21642 Chapter Notes - Chapter 2: International Accounting Standards Board, Corporations Act 2001, Deferral
13 Jun 2018
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Department
Course
Professor
Measuring and Reporting Financial Position II
Current Assets:
-Cash
-Marketable securities
-Accounts receivable
-Inventories
-Prepaid expenses e.g. insurance
Non-current Assets:
-Tangible assets e.g. facilities and equipment
-Investments
-Intangible assets e.g. goodwill, licenses
Equity:
-Contributed capital
-Retained earnings
-Shareholder equity
Current Liabilities:
-Accounts payable
-Tax payable
-Accrued expenses - recognised in the books before it is paid for
-Unearned revenue - amount received in advance of providing products
-Provisions
-Current portion of long term debt
Non-current Liabilities:
-Loans
-Provisions
Legal factors influencing the form and content of finial reports:
•Requirement to use accounting standards - Corporations Act 2001
•Generate accounting standards - International Accounting Standards Board (IASB) and
Australian Accounting Standards Board (AASB)
•Enforce accounting standards - Australian Securities & Investment Commission (ASIC)
•Enforce accounting standards and own rules - • Australian Stock Exchange (ASX)
AASB Conceptual Framework:
•Economic entity - financial activities of a business can be separated fro those of the business
owner
•Time period - economic information can be meaningfully captured and communicated over short
periods of time
•Monetary unit - accountant assume that the dollar is the most effective means to communicate
economic activity
•Going concern - accountants assume that a company will continue to operate into the
foreseeable future
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Accrued expenses - recognised in the books before it is paid for. Unearned revenue - amount received in advance of providing products. Legal factors in uencing the form and content of nial reports: requirement to use accounting standards - corporations act 2001, generate accounting standards - international accounting standards board (iasb) and. Australian accounting standards board (aasb: enforce accounting standards - australian securities & investment commission (asic, enforce accounting standards and own rules - australian stock exchange (asx) Content factor in uencing the form and content of nial reports: qualitative characteristics - relevance, faithful representation, understandability, comparability, historic cost notion, conservatism, double entry convention. Probable that economic bene ts will be received. Ownership and control of items passed to buyer. Stock approach to calculating pro t - difference between opening gure and closing gure for net assets msg equal changes in equity over the same period, useful when records are unavailable.
