We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byJarrett Skipworth
Modified over 2 years ago
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 1.4 Quiz and Discussion Section 1 SMEs Section 2 Concepts & Pervasive Principles
© 2011 IFRS Foundation 2 This PowerPoint presentation was prepared by IFRS Foundation education staff as a convenience for others. It has not been approved by the IASB. The IFRS Foundation allows individuals and organisations to use this presentation to conduct training on the IFRS for SMEs. However, if you make any changes to the PowerPoint presentation, your changes should be clearly identifiable as not part of the presentation prepared by the IFRS Foundation education staff and the copyright notice must be removed from every amended page. This presentation may be modified from time to time. The latest version may be downloaded from: http://www.ifrs.org/IFRS+for+SMEs/SME+Workshops.htm The accounting requirements applicable to small and medium ‑ sized entities (SMEs) are set out in the International Financial Reporting Standard (IFRS) for SMEs, which was issued by the IASB in July 2009. The IFRS Foundation, the authors, the presenters and the publishers do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this PowerPoint presentation, whether such loss is caused by negligence or otherwise.
© 2011 IFRS Foundation 3 Case study* about Section 1 Small and Medium-sized Entities * see case study in Module 1 of the IFRS Foundation training material
© 2011 IFRS Foundation 4 Section 1 – Discussion questions Case study 1 - multinational group - consolidated FS using full IFRSs - stock exchange listed parent - subsidiaries not listed - local law permits use the IFRS for SMEs except -IFRS for SMEs is not permitted for J -IFRS for SMEs is required for D (even if publicly accountable) Which subs can use the IFRS for SMEs?
© 2011 IFRS Foundation 5 Section 1 – Discussion questions Case study 1 continued Information about subsidiaries A retails food. It is in the process of issuing debt in a domestic stock exchange B operates a private school. It holds refundable deposits. Deposits are refunded when child’s application is declined or the child leaves the school. Deposits are forfeited if a child declines to take up a place at the school.
© 2011 IFRS Foundation 6 Section 1 – Discussion questions Case study 1 continued Information about subsidiaries continued C operates a travel agency. It holds deposits for prebooked package holidays. Deposits are refunded only if cancelled more than 60 days before travel. D retails food. As a ‘side-line’ it also takes deposits from its customers in return for a promise to return capital plus interest.
© 2011 IFRS Foundation 7 Section 1 – Discussion questions Case study 1 continued Information about subsidiaries continued E retails food. It also provides employees with short-term interest-free loans so that they can purchase annual rail cards to travel between their homes and place of work. Employees repay the loan in 12 equal monthly instalments (deducted from their salaries).
© 2011 IFRS Foundation 8 Section 1 – Discussion questions Case study 1 continued Information about subsidiaries continued J retails food. Local law does not permit J to use the IFRS for SMEs.
© 2011 IFRS Foundation 9 Section 1 – Discussion questions Case study 1 continued The group wants to simplify the process of preparing its consolidated financial statements. Can the group follow any of the following options?
© 2011 IFRS Foundation 10 Section 1 – Discussion questions Case study 1 continued Option 1: Require subs to use the recognition and measurement (R&M) requirements of full IFRSs and provide the disclosures required by the IFRS for SMEs. Option 2: Require subs use the R&M requirements of the IFRS for SMEs, except for financial instruments, which would be R&M in accordance with full IFRSs (ie IAS 39), and provide the disclosures required by the IFRS for SMEs.
© 2011 IFRS Foundation 11 Section 1 – Discussion questions Case study 1 continued Option 3: Require subs to use the R&M requirements of the IFRS for SMEs, except for borrowing costs, which would be recognised and measured in accordance with full IFRSs (ie IAS 23), and provide the disclosures required by the IFRS for SMEs. Option 4: Require subs to use the IFRS for SMEs.
© 2011 IFRS Foundation 12 Questions about Section 2 Concepts and Pervasive Principles
© 2011 IFRS Foundation 13 Section 2 – Discussion questions Question 1: The objective of general purpose financial statements prepared in accordance with the IFRS for SMEs is: a.to inform government statistics? b.to support the entity’s tax return? c.to meet all the information needs of all the users of an entity’s financial statements? d.to inform economic decision-making by a broad range of users that are not in a position to demand reports tailored to their needs (eg investors and creditors)?
© 2011 IFRS Foundation 14 Section 2 – Discussion questions Question 2: The qualitative characteristic ‘reliability’ means: a.free from material error and bias and a faithfully representation of the economic phenomenon? b.precision (eg little or no uncertainty in a measurement)? c.historic cost? d.fair value?
© 2011 IFRS Foundation 15 Section 2 – Discussion questions Question 3: Expenses are recognised in comprehensive income (profit or OCI): a.using the matching basis—on the basis of a direct association between the costs incurred and the earning of specific items of income? b.using the accrual basis—items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items? c.at the discretion of management?
© 2011 IFRS Foundation 16 Section 2 – Discussion questions Question 4: Prudence implies that in preparing financial statements management should: a.have a bias toward understating assets and income and overstating liabilities and expenses? b.have a bias toward understating liabilities and expenses and overstating assets and income? c.be neutral (ie no bias) and cautious in the exercise of judgements needed in making estimates?
© 2011 IFRS Foundation 17 Section 2 – Discussion questions Question 5: Recognition criteria determine when to recognise an item. Measurement is determining the monetary amounts at which to measure an item. Uncertainties about the extent of future cash flows: a.only affect the decision about whether to recognise? b.only affect the estimation of the amount at which to measure the item? c.could affect both recognition and measurement?
© 2011 IFRS Foundation 18 Section 2 – Discussion questions Question 6: How many measurement bases does the IFRS for SMEs specify for the measurement of assets? a.one—historical cost b.one—fair value c.two—historical cost and fair value d.many—including historical cost, fair value, value in use, estimated selling price less costs to complete and sell, etc
1 International Financial Reporting Standards IFRS for SMEs IFRS Foundation-World Bank 18–20 October 2011 Sarajevo, Bosnia and Herzegovina Copyright ©
The Arab Society of Certified Accountants (ASCA) 1 International Financial Reporting Standards IFRS for SMEs Joint DUBAI SME-ASCA-IFRS Foundation Workshop.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 1.3 Sections 1 and 2 Scope and concepts.
International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 3.3 Quiz and Discussion Section 29 Income Tax.
The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation or the IASB IASC Foundation International.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 1.7 Quiz and Discussion Section 23 Revenue.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 3.8 Quiz and Discussion Section 9 Consolidated and Separate Financial Statements Section 19 Business Combinations.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 3.4 Quiz and Discussion Liabilities Sections 20, 21 & 28.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 2.5 Quiz and Discussion Assets Sections 13–18 & 27.
© 2006 KPMG, the Trinidad and Tobago member firm of KPMG International, a Swiss cooperative. All rights reserved. The KPMG logo and name are trade marks.
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 3.7 Quiz and Discussion Section 35 Transition.
Financial Statements 2 Lecture 3 Conceptual Framework.
By Samuel Bediako & Mo Zhang IFRS for Small and Medium Entities(SME)
Will you be reporting equity in your balance sheet in 2005?
© 2011 IFRS Foundation 1 The IFRS for SMEs Topic 1.1 Introduction.
SFRS FOR SMALL ENTITIES Who qualifies to be small entity: Based on IFRS for SMEs: Does not have public accountability. Who is public? Publishes general.
Financial Statements 2 Lecture 3 Conceptual Framework 1.
Slide 25.1 Alan Melville, International Financial Reporting, 3rd Edition, © Pearson Education Limited 2011 Chapter 25 - SMALL AND MEDIUM-SIZED ENTITIES.
Module n° 1 - Page 1./ THE CONCEPTUAL FRAMEWORK: ACCOUNTING POLICIES AND CONVENTIONS INTERNATIONAL FINANCIAL REPORTING STANDARDS.
Copyright© Dorling Kindersley India Pvt Ltd Financial Accounting for Management 4 Conceptual Framework of Financial Statements.
1 © 2006 IASC Foundation, all rights reserved. The IASB Project on Accounting Standards for SMEs Paul Pacter IASB Director of Standards for Small and Medium-sized.
Chapter 2 Conceptual Framework For Financial Reporting 1.
Theoretical Structure of Financial Accounting INTERMEDIATE ACCOUNTING I CHAPTER 1.
Intermediate Financial Accounting I Conceptual Framework Underlying Financial Reporting.
IAS 21 The Effects of Changes in Foreign Exchange Rates.
0 Glencoe Accounting Unit 4 Chapter 19 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Accounting for a Corporation A corporation may.
Benoît Lebrun Chairman, Accounting Working Party FEE 7 June 2005 Advanced program in accounting and auditing regulation Accounting Directives.
Andrew F. Brathwaite Cyril Soeri June IFRS for SMEs Exposure Draft ◦ Questions ◦ Proposed amendments ◦ Other IASB Guide for Micro-sized Entities.
Connolly – International Financial Accounting and Reporting – 4 th Edition CHAPTER 1 FRAMEWORK FOR FINANCIAL REPORTING.
1 Financial Statements by Binam Ghimire. Learning Objectives 1.Understand various types of finance to raise 2.Deciding which assets to buy 3.Recognition.
1 ANNUAL IFRS WEEK IAS 27 Separate Financial Statements.
Chapter 2. Objective test 2 On 1 April ABC Ltd purchased and received equipment to be used in the production of items that will be sold. The equipment.
Accounting (Basics) - Lecture 2 Consolidated and separate financial statements.
– Prepared By – Rajat Dua. Objectives Basis of presentation of Financial Statements Comparability To setout the framework for preparation of financial.
Rangajewa Herath B.Sc. Accountancy and Financial Management(Sp.)(USJ) MBA-PIM(USJ), ACA.
14-1. Accounting Principles and Reporting Standards Section 1: Generally Accepted Accounting Principles Chapter 14 Section Objectives 1.Understand the.
Conceptual Framework u By the end of this class you should be familiar with …. u Activities of the firm u Major items in the Balance sheet and Income Statement.
© 2017 SlidePlayer.com Inc. All rights reserved.