DFS Accounting Standards - quick tests

noodles

Just to keep us all remembering

Q - Define IAS 10

reddwarf

"Events after the Statement of Financial Position

Adjusting and non adjusting events.

Events favourable and unfavourable that occur between the Ss of FP date and the date of publication/authorisation.

Adjusting events evidence conditions that existed at the SOFP date.

Non adjusting indicative of conditions that arose after the SOFP date."



Apparently we don't get any marks for knowing the IAS numbers!!

jewels.p

Ref. Reddwarf's comments about not getting any marks for remembering numbers in IAS's.

I noticed that on the Past Exam Papers it doesnt really ask for the numbers it usually tells you the number doesnt it?

reddwarf

I think if you quote the principle of the standard not knowing the number doesn't matter a jot! I think some of the questions give you the number and others not.

On another point re osborne work book exam 4, task 1.2 part b) about the fire

I think it is unclear here whether or not the statements have been published. The narrative says the directors of the co wanting to take over the prospective co have 'obtained the latest financial statements' -

I have decided if this type of ambiguity happens in a question in the exam to state 'I have assumed the statements are not authorised or published' or are published - depending.

Clearly this would affect whether or not a disclosure is possible. Just thought I'd mention this....

Esme

Describe Impairment losses

emmap2

Esme wrote: »

Describe Impairment losses

Impairment losses arise when the carrying amount of a non-current asset is higher than the recoverable amount.

What is deferred tax?

noodles

Deferred tax - ias 12 ?? is the difference between the carrying asset and the capital allowance balance.

noodles

Q - define IAS 27 - provisions and contingents

noodles

silly me - meant to say consolidated statements - just had a beer - hicup

reddwarf

Deferred tax is the taxable difference arising from timing differences when capital allowances are more than depreciaton and may be allowable against income tax resulting in the taxable profit being a different amount from the profit shown in the income statement in an accounting period. This saving in corporation tax will later reverse. IAS12 Income taxes states that deferred tax liablities should be recognised for all temporary taxable differences. This is the non current liability in the statement of FP arising from this sort of timing difference.