financial accounting for company
WEEK 3 WORKSHOP TASKS (for submission at start of Week 3 workshop)
Review Question 4 (page 628 of text)
When reviewing the financial statements and supporting notes of a reporting entity, is it possible to establish all the individual types of income or expenses that the entity has incurred or received? If not, how does management determine which income and expenses should be disclosed?
NZ IAS 1 paragraph 88 requires entities to recognize all items of income and expense occurred in the trading period. However, it is impossible to establish all the individual types of income and expenses that incurred or received in the entity. Manager should disclose income and expenses that have effect on the profit and loss, total other comprehensive income, comprehensive income for the period, being the total of profit or loss and other comprehensive income. The profit and losses as well as other comprehensive income generated by an entity will have impact on the assets and/or liabilities of the entity. As the result of the requirements of some accounting standards, certain income and expenses will not be included in the statement of comprehensive income, but rather are adjusted directly against equity. Manager should choose expenses and incomes that do not belong to a specific equity account.
Review Question 5 (page 628 of text)
List some of the income and expenses that must be disclosed according to NZ IAS 1. Do these items have to be disclosed in the body of the statement of comprehensive income or can they be disclosed in the accompanying notes?
The minimum requirement information to be disclosed in the statement of comprehensive income are revenue; gains and losses arising from the derecognition of financial assets measured at amortised cost; share of the profit or loss of associated and joint ventures accounted for using the equity method; tax expenses, a single amount for total of discontinued operations. These information must be presented on the face of the
Review Question 4 (page 628 of text)
When reviewing the financial statements and supporting notes of a reporting entity, is it possible to establish all the individual types of income or expenses that the entity has incurred or received? If not, how does management determine which income and expenses should be disclosed?
NZ IAS 1 paragraph 88 requires entities to recognize all items of income and expense occurred in the trading period. However, it is impossible to establish all the individual types of income and expenses that incurred or received in the entity. Manager should disclose income and expenses that have effect on the profit and loss, total other comprehensive income, comprehensive income for the period, being the total of profit or loss and other comprehensive income. The profit and losses as well as other comprehensive income generated by an entity will have impact on the assets and/or liabilities of the entity. As the result of the requirements of some accounting standards, certain income and expenses will not be included in the statement of comprehensive income, but rather are adjusted directly against equity. Manager should choose expenses and incomes that do not belong to a specific equity account.
Review Question 5 (page 628 of text)
List some of the income and expenses that must be disclosed according to NZ IAS 1. Do these items have to be disclosed in the body of the statement of comprehensive income or can they be disclosed in the accompanying notes?
The minimum requirement information to be disclosed in the statement of comprehensive income are revenue; gains and losses arising from the derecognition of financial assets measured at amortised cost; share of the profit or loss of associated and joint ventures accounted for using the equity method; tax expenses, a single amount for total of discontinued operations. These information must be presented on the face of the