FRS and SSAP

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FRS 18 - Accounting policies
Three main concepts- 1) ACCrual concept -final accounts should be
prepared on accrual basis
2) Going concern- final accounts to be prepared
on the assumption that business
continue trading for foreseeable future.
3) Materiality-accounting treatment of small items in
the financial statements
4 objectives -relevance, reliability, understandability, comparability

FRS 15 - Accounting for Tangible Fixed assets
-Depreciation
SSAP 5 - Accounting for value added tax
-sales reported in P&L should not include VAT
-irrecoverable Vat should be included in cost of item
SSap 9- Stocks and longterm contracts
-stock valued at lower of cost and Net realisable value.
SSAP 21 - Accounting for leases and hire purchase contracts
-2 types of leases 1) oerating lease
2) finance lease

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For Objectives remember CURRy but no y
Comparability
Understandability
Relevance
Reliability

Concepts are MAGiC but no i
Materiality
Accruals
Going Concern