Homework on Standard Setting/ Conceptual Framework and IAS/PAS No. 1
A. Identification- Write the word(s) best described by the statements below:
1. The financial report that shows the reporting entity’s economic resources and claims. 2. Refers to the ability of the business to raise cash to meet unexpected cash requirements. 3. Refers to the capacity of financial information to make a difference in the decisions made by users.
4. An entity-specific aspect of relevance which is based on the nature or magnitude of the item.
5. The underlying accounting assumption explicitly stated in the IFRS framework.
6. An enhancing qualitative characteristic of financial information that allows different knowledgeable and independent observers to reach a consensus.
7. A fundamental qualitative characteristic other than relevance. 8. A concept in capital maintenance that requires the adoption of the current cost basis of measurement.
9. Portray the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics.
10. The entity responsible for the preparation and presentation of financial statements. 11. Sets out the recognition, measurement, presentation and disclosure requirements of transactions and events that are important in financial statements.
12. Contain information in addition to that presented in the statement of financial position, statement of comprehensive income, statement of changes in equity and the statement of cash flows.
13. An overall consideration that requires the selection and application of appropriate accounting policies.
14. A committee appointed by the FRSC that issues implementing guidelines on PFRS.
15. The required number of approval from the IASB members for an exposure draft to be published for public comment.
B. Fill in the blanks – Write the word(s) to make the statements complete and correct.
1. _______________ sets out the concepts that underlie the preparation and presentation of financial statements for external users.
2. A major characteristic of relevant information that allows the users to forecast the outcome of future events is ____________________.
3. __________________ is a measurement basis which refers to the amount of cash or cash equivalents that would have to be paid if the same or an equivalent asset was acquired currently.
4. Timeliness means that information is available to decision-makers in time to be capable of influencing _________________.
5. __________________ is a concept in capital maintenance which is also known as the net assets approach.
6. __________________ is the standard setting body in the USA which is currently working closely with IASB.
7. Under the function of expense method of presenting expenses in the income statement, expenses are classified according to its________________________.
8. The FRSC is composed of ______ members with a ______ year term and renewable for another term.
9. One of the overall considerations in the preparation of financial statements is _________________________ which states that immaterial amounts should be grouped together with amounts of a similar nature or function.
10. General purpose financial reports represent _________________ in words and numbers.
11. _______________________ is a resource controlled by the enterprise as a result of past events and from which future economic events are expected to flow to the enterprise.
12. _______________________ are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity other than those relating to distributions to equity participants.
13. ______________________ is a circumscribed area of economic activities whose financial information has the potential to be useful to existing and potential...
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