CFAS QUIZ

• Financial Capital Maintenance


  Profit is earned if the productive capacity at the end of the period exceeds the productive capacity at the beginning of the period
• Financial capital maintenance


  Profit is earned if the net assets at the end of the period exceeds the net assets at the beginning of the period
• Presentation of notes to financial statements in systematic manner is mandatory as far as practical
• Purpose of the notes to financial statements

  To provide disclosures required by IFRS
• Types of activities in financial statements

  • Operating activities (current liabilities and current assets)
  • Investing activities (non-current assets)
  • Financing activities (non-current liability and owners equity)
• Events after the end of reporting period


  Favorable or unfavorable events that occur between the year end and the date when financial statements are authorized for issue
• Financial statements authorized for issue

  When the management reviews the financial statements and authorizes them for issue
• Adjusting events after the reporting period


  Events that provide evidence of conditions that existed at the end of the reporting period
• Non-adjusting events after the reporting period


  Events that are indicative of conditions that arose after the reporting period
• Change in accounting policy

  Cumulative effect of the changes for prior periods be shown as an adjustment to beginning retained earnings for the earliest period presented
• Subsequent measurement of property, plant and equipment

  • Cost model
  • Evaluation model
• Insurance Contract


  A contract under which one party accepts significant insurance risk from another party by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder
• Insured Event


  An uncertain future event that is covered by an insurance contract and creates insurance risk
• Insurance Risk


  A risk, other than financial risk, transferred from the holder of a contract to the issuer
• Lease


  A contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration
• Lease Term


  The noncancellable period of a lease, plus or minus any lease extension, if reasonably certain to be exercised
• Contract


  An agreement between two or more parties that creates enforceable rights and obligations
• Customer


  A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration
• Transaction Price


  The amount of consideration to which an entity expects to be entitled inn exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties
• Joint Arrangement


  An arrangement of which two or more parties have joint control
• Joint Control


  The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control
• Significant Influence


  The power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies
• Control


  The power to govern the financial and operating policies of investee so as to obtain benefits from it
• Joint Operation


  A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement
• Joint Venture


  A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement
• Separate Vehicle


  A separately identifiable financial structure, including separate legal entities or entities recognized by statute, regardless of whether those entities have a legal personality
• Joint Operator


  It recognizes its own assets, liabilities, income and expenses plus its share in the joint operation's assets, liabilities, income and expenses
• Business


  An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants
• Consolidated Financial Statements


  The financial statements of a group in which the assets, liabilities, equity, income, expenses and cashflows of the parent and its subsidiaries are presented as those of a single economic entity
• Relevant Activities


  Activities of the investee that significantly affect the investee's returns
• Non-Controlling Interest


  Equity in a subsidiary not attributable, directly or indirectly, to a parent
• Share-Based Payment Transaction


  A transaction in which the entity acquires goods or services and pays for them by issuing its own equity instruments or cash based on the value of its own equity instruments
• Equity-settled


  One in which the entity receives goods or services and pays for them by issuing its shares of stocks or share options
• Cash-settled


  One in which the entity receives goods or services and incurs an obligation to pay cash at an amount that is based on the fair value of its own equity instruments
• Equity Instruments


  Contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities
• Grant Date


  The date at which the entity and the counterparty agree to, and have shared understanding of the terms and conditions of a share-based payment arrangement
• Intrinsic Value


  The difference between the fair value of the shares which the counterparty has the right to subscribe or receive and the subscription price if any that the counterparty is required to pay
• Share Based Compensation plan


  Arrangement whereby, in exchange for services, an employee is compensated in the form of or based on the entity's equity instrument
• Share option


  A contract that gives the holder the right but not the obligation to subscribe to the entity's share at a fixed or determinable price for a specified period of time
• Share Appreciation Right


  A form of compensation given to an employee whereby the employee is entitled to future cash payment based on the increase in the entity's share price from a specified level over a specified period of time