Show Menu
Cheatography
  1. Home >
  2. Business and Marketing >

C1: Financial Reporting and Accounting Standards Cheat Sheet (DRAFT) by

Chapter One; International Financial Reporting Standards.

This is a draft cheat sheet. It is a work in progress and is not finished yet.

Objective of Financial Reporting

• Genera­l-p­urpose financial statements
• Capital providers
• Entity perspe­ctive
• Decisi­on-­use­fulness

Standa­rd-­Setting Organi­sations

• IOSCO
• IASB
• Hierarchy of IFRS

Financial Reporting Challenges

• Political enviro­nment
• Expect­ations gap
• Signif­icant financial reporting issues
• Ethics
• Intern­ational conver­gence
 

Financial Statements and Financial Reporting

Charac­ter­istics of accounting are:
the identi­fic­ation, measur­ement, and commun­ication of financial inform­ation about economic entities to interested parties.
 
Financial Statem­ents:
1. Statement of Financial Position
2. Statement of Compre­hensive Income (Income Statement)
3. Statement of Cash Flows
4. Statement of Changes in Equity
5. Note Disclo­sures

Accounting and Capital Allocation

  

High Quality Standards

LO3: Explain the need for high-q­uality standards.
 
Global­isation demands a single set of high-q­uality intern­ational accounting standards. Some elements:
1. Single set of high-q­uality accounting standards establ­ished by a single standa­rd-­setting body.
2. Consis­tency in applic­ation and interp­ret­ation.
3. Common Disclo­sures.
4. Common high-q­uality auditing standards and practices.
5. Common approach to regulatory reviews and enforc­ement.
6. Education and training market partic­ipants.
7. Common delivery systems (e.g., eXtensible Business Reporting Language - XBRL).
8. Common Approach to corporate governance and legal frameworks around the world.