HSCS Training & Consulting

IFRS Course 1st Lecture

CH 1 the IASB & Regulatory Framework
Q1- There are the 4 different bodies involved in the IFRS
setting process Give a brief description of each one
highlighting their role in the standard setting process? Dec 11
8 marks

Q2- Describe the IFRS Foundation's standard setting process

including how standards are produced, enforced and
occasionally supplemented.
10 marks
Q3- Discuss the benefits and the barriers to Global
Harmonization to IFRS.
8 marks
Q4- Explain in what ways IFRS differs from US GAAP.
4 marks
IFRS first time Adoption Issues / challenges / requirements /
Exemptions.
CH2 The Conceptual Framework
Q1- what is meant by the conceptual framework for IFRS?
Q2- What are the main purposes of the conceptual framework?
Q3- What are the pros and cons of the existence of conceptual
framework?
Q4- Identify 4 users of FS and explain what information they
are likely to want?
Main Points of the Conceptual framework:
The objective of financial Reporting.
Accrual basis (trx recorded once they occur)

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Underlying Assumption Going Concern (No intention

to liquidate)
Qualitative Characteristics of useful Financial
information:
- Relevance relevant inf. Can make difference in
decision making.
- Faithful representation (complete,neutral,free from error)
Substance over form

- Comparable accounting policies applied retrospectively /

Estimates No

- Verifiable means able to be proved

- Timeliness inf. Available in time (for instance if ur.
comp. needs a loan to do a project for a customer )
- Understandability
The Elements of Financial Statements
Statement of Financial Position:
- Assets- resources controlled past event-future economic
benefits

- Liability- Provision

(present obligation-past event-outflow of economic

benefits)

- Equity ( Assets liabilities )

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Financial Performance Statement of Profit or Loss:
- Income Gains ( disposal of NCA)
- Expenses Losses (disposal of NCA)
Recognition of Elements of Financial Statements:
- Probability of future economic benefits
- Reliable Measurement..if can't be estimated should not be
recorded

Measurement of FS elements:
- Historical Cost
- Current cost No discounting for liabilities

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- Realizable Value = amount obtained by selling the

asset
- Present Value: present discounted value of future net
cash flows
Fair Presentation and compliance with IFRS
- Compliance with IFRS should be disclosed
- All relevant IFRS must be followed if compliance with
IFRS is disclosed
- Inappropriate accounting treatment is not allowed and
can't be justified.