Fnst

Dipak Thanki

Hi,

Last time I sat my exam on task 2.3, I really struggled with these two questions.

Identify the two recognition criteria referred to in the framework.

-I've look through my notes, is accruals concept and going concern the answer?

State the two assumptions underlying the preparation of financial statements, as specified in the framework.

-No idea about this one.

Any help would be appreciated.

Thanks

Henry

Hi,
In terms of the assumptions under which financial statements are prepared you are correct that these assumptions will be based on accurals concept and going concern.

The recognition criteria refers to recognising the elements [assets, liabs etc] of financial statements. You recognise the element if it is probable that future economic benefits will flow to or from the entity. Secondly, if the value or cost of the element can be reliably measured.

Hope this helps.

Dipak Thanki

Thanks for the help!

geek84

Hi

I have got my financial statements exam next week. Could someone be kind enough to give me an idea of which IAS's to mostly concentrate on - there seems to be about 20 of them, and I don't know whether I need to learn them all by heart!

By the way, how long is the exam?

Thank You.

Jo Clark

Hello Geek

The exam is 2.5 hours. As mentioned in other posts you really can't second guess what IAS's you may be tested on and therefore need to have an understanding of all those covered in your study text.

If you search this forum there are several threads about this - in particular check the thread with a post from Steve Collings.

Good luck next week.


JC

niccham79

Dipak, I had the same questions as you last time.
Luckily I knew accruals and going concern were 2.3a but I didn't have a clue on 2.3 b either so just want to say thank you very much Henry as you've really helped me just in case I get this question again (re-sit in 2 weeks!).. )