Financial Accounting and Reporting All
questions are answered perfectly,
guaranteeing an outstanding grade
A group of companies - Answer A parent and all its subsidiaries.
Acquisition date - Answer The date on which the acquirer obtains control of the acquiree.
Asset - Answer A present economic resource controlled by the entity as a result of past
events. An economic resource is a right that has the potential to produce economic benefits.
Borrowing costs - Answer Interest and other costs that an entity incurs in connection with the
borrowing of funds.
Cash equivalents - Answer Short-term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash flows - Answer These are inflows and outflows of cash and cash equivalents.
Property, plant and equipment - Answer A grouping of assets of a similar nature and use in an
entity's operations.
Confidentiality - Answer To respect the confidentiality of information acquired as a result of
professional and business relationships. Confidential information must not be disclosed outside
the organisation without authority, unless there is a duty or right to disclose, or disclosure is in
the public interest and permitted by law.
1
, Consolidated financial statements - Answer The financial statements of a group in which the
assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are
presented as those of a single economic entity.
Costs of disposal - Answer Incremental costs directly attributable to the disposal of an asset
or cash generating unit excluding finance costs and income tax expense.
Current asset - Answer An asset shall be classified as current when it satisfies any of the
following criteria:
- it is expected to be realised in, or is intended for sale or consumption in, the entity's normal
operating cycle
- it is held primarily for the purpose of being traded
- it is expected to be realised within 12 months after the reporting period
- it is cash or a cash equivalent (as defined in IAS 7, Statement of Cash Flows), unless it is
restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period.
All other assets should be classified as non-current assets.
Current liability - Answer A liability shall be classified as current when it satisfies any of the
following criteria:
- it is expected to be settled in the entity's normal operating cycle
- it is held primarily for the purpose of being traded
- it is due to be settled within 12 months after the reporting period
- the entity does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting period.
All other liabilities should be classified as non-current liabilities.
2
questions are answered perfectly,
guaranteeing an outstanding grade
A group of companies - Answer A parent and all its subsidiaries.
Acquisition date - Answer The date on which the acquirer obtains control of the acquiree.
Asset - Answer A present economic resource controlled by the entity as a result of past
events. An economic resource is a right that has the potential to produce economic benefits.
Borrowing costs - Answer Interest and other costs that an entity incurs in connection with the
borrowing of funds.
Cash equivalents - Answer Short-term, highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash flows - Answer These are inflows and outflows of cash and cash equivalents.
Property, plant and equipment - Answer A grouping of assets of a similar nature and use in an
entity's operations.
Confidentiality - Answer To respect the confidentiality of information acquired as a result of
professional and business relationships. Confidential information must not be disclosed outside
the organisation without authority, unless there is a duty or right to disclose, or disclosure is in
the public interest and permitted by law.
1
, Consolidated financial statements - Answer The financial statements of a group in which the
assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are
presented as those of a single economic entity.
Costs of disposal - Answer Incremental costs directly attributable to the disposal of an asset
or cash generating unit excluding finance costs and income tax expense.
Current asset - Answer An asset shall be classified as current when it satisfies any of the
following criteria:
- it is expected to be realised in, or is intended for sale or consumption in, the entity's normal
operating cycle
- it is held primarily for the purpose of being traded
- it is expected to be realised within 12 months after the reporting period
- it is cash or a cash equivalent (as defined in IAS 7, Statement of Cash Flows), unless it is
restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period.
All other assets should be classified as non-current assets.
Current liability - Answer A liability shall be classified as current when it satisfies any of the
following criteria:
- it is expected to be settled in the entity's normal operating cycle
- it is held primarily for the purpose of being traded
- it is due to be settled within 12 months after the reporting period
- the entity does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting period.
All other liabilities should be classified as non-current liabilities.
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