Module 1 - L1.1 to L1.3

<p>The relative importance of an item that could influence the decisions of users of financial statements. (A)</p> Signup and view all the answers

<p>Establishing the fundamental concepts that underlie the preparation and presentation of financial statements. (A)</p> Signup and view all the answers

<p>Using a combination of measurement bases, such as historical cost and fair value, depending on the nature of the asset or liability. (D)</p> Signup and view all the answers

<p>They may not cater to the specific information needs of all users due to their broad focus. (C)</p> Signup and view all the answers

<p>It allows for flexibility and interpretation within the IFRS framework to reflect the substance of transactions. (C)</p> Signup and view all the answers

<p>To provide users with information to make effective decisions and to give an account of resource management. (A)</p> Signup and view all the answers

<p>Existing and potential investors, lenders, and other creditors. (C)</p> Signup and view all the answers

<p>Statement of Financial Position. (C)</p> Signup and view all the answers

<p>Statement of Cash Flows. (D)</p> Signup and view all the answers

<p>Because of the significant level of resources managed and the decisions users make based on financial reports. (C)</p> Signup and view all the answers

<p>To provide financial information useful for making decisions about providing resources to the entity (C)</p> Signup and view all the answers

<p>To provide a detailed account of how managers have used the resources provided by users. (C)</p> Signup and view all the answers

<p>General Purpose Financial Statements. (A)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>Income, expenses and profitability for a reporting period on an accrual basis. (B)</p> Signup and view all the answers

<p>Both A and B. (C)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>Technology advancements can be incorporated into a whole suite of reporting tools to properly and efficiently address the information needs of users. (C)</p> Signup and view all the answers

<p>It requires the managers to give an account of how they have used the resources provided by those users. (C)</p> Signup and view all the answers

<p>Existing and potential investors, lenders, and other creditors (A)</p> Signup and view all the answers

<p>Providing information that meets the needs of the maximum number of primary users. (C)</p> Signup and view all the answers

<p>IFRSs take precedence over the Conceptual Framework in case of conflict, with explanations for departures provided. (D)</p> Signup and view all the answers

<p>Lenders are more concerned with short-term liquidation value in case of default, while investors focus on the long-term earning potential. (A)</p> Signup and view all the answers

<p>To provide a standardized framework that enhances transparency, accountability, and efficiency. (D)</p> Signup and view all the answers

<p>In the Basis for Conclusions of the relevant standard. (B)</p> Signup and view all the answers

<p>It required the Australian Accounting Standards Board to adopt IFRSs for specific reporting periods. (C)</p> Signup and view all the answers

<p>To offer detailed explanations of the IASB's considerations when developing or updating the standard. (A)</p> Signup and view all the answers

<p>International Accounting Standards (IASs) (A)</p> Signup and view all the answers

<p>When a member or members of the IASB do not approve the publication of the standard. (D)</p> Signup and view all the answers

<p>Management Discussion and Analysis (D)</p> Signup and view all the answers

<p>All paragraphs have equal authority; paragraphs in bold type highlight the main principles. (A)</p> Signup and view all the answers

<p>It denotes that the AASB standard is equivalent to an IAS. (C)</p> Signup and view all the answers

<p>Standard setters' choices may result in the needs of some users being met at the expense of others. (A)</p> Signup and view all the answers

<p>To offer practical explanations and demonstrate the application of the standard's main principles. (B)</p> Signup and view all the answers

<p>To assist primary users in making informed decisions. (B)</p> Signup and view all the answers

<p>Whether the supplier has substitution rights, whether there is an identified asset, and whether the customer has the right to control the use of the asset. (C)</p> Signup and view all the answers

<p>The entity should prioritize the information needs of lenders, as they represent the largest group of primary users. (A)</p> Signup and view all the answers

<p>It signifies that the paragraph contains additional requirements or clarifications specific to Australian entities. (B)</p> Signup and view all the answers

<p>It allows for different measurement approaches depending on the specific needs of the user group. (D)</p> Signup and view all the answers

<p>It refers to the date at which the standard becomes mandatory and if earlier adoption is permitted. (B)</p> Signup and view all the answers

<p>Comply with the International Financial Reporting Standards (IFRSs) (B)</p> Signup and view all the answers

<p>They can internally obtain whatever financial information they need. (C)</p> Signup and view all the answers

<p>International Accounting Standards Board (IASB) (C)</p> Signup and view all the answers

<p>A lease that provides the customer with exclusive use of an asset for a period of one week. (D)</p> Signup and view all the answers

<p>Customer rents a truck from Supplier to transport cargo. (C)</p> Signup and view all the answers

<p>The truck is not explicitly specified in the contract, and Supplier has the right to substitute the truck. (B)</p> Signup and view all the answers

<p>It prepares financial statements. (C)</p> Signup and view all the answers

<p>Basis for Conclusions. (A)</p> Signup and view all the answers

<p>IFRSs. (D)</p> Signup and view all the answers

<p>Any entity required by law or regulation in jurisdictions adopting IFRS. (C)</p> Signup and view all the answers

<p>It offers a foundation for selecting and implementing accounting policies when specific guidance is lacking. (B)</p> Signup and view all the answers

<p>Corporations Act (A)</p> Signup and view all the answers

<p>An entity with enhanced disclosure securities on issue. (A)</p> Signup and view all the answers

<p>Exceeding two of three thresholds for revenue, gross assets, and number of employees. (A)</p> Signup and view all the answers

<p>Either general purpose or special purpose financial reports. (D)</p> Signup and view all the answers

<p>Special purpose financial reports. (C)</p> Signup and view all the answers

<p>A registered club. (D)</p> Signup and view all the answers

<p>An entity that is required, or chooses, to prepare financial statements. (A)</p> Signup and view all the answers

<p>An association registered under a state-based Incorporated Associations Act. (A)</p> Signup and view all the answers

<p>For-profit private sector entities with publicly listed securities. (C)</p> Signup and view all the answers

<p>General purpose financial reports. (C)</p> Signup and view all the answers

<p>Only Special Purpose Financial Reports (D)</p> Signup and view all the answers

<p>Associations (D)</p> Signup and view all the answers

<p>When its constituting document, created after 1 July 2021, necessitates it. (A)</p> Signup and view all the answers

<p>To provide clarity on the report's scope and limitations to users. (B)</p> Signup and view all the answers

<p>An indication of how it does not comply must be disclosed. (C)</p> Signup and view all the answers

<p>Tier 1 requires all recognition, measurement and disclosure requirements in Australian Accounting Standards, while Tier 2 contains substantially simplified disclosure. (A)</p> Signup and view all the answers

<p>For-profit private sector entities with public accountability. (C)</p> Signup and view all the answers

<p>Having debt or equity instruments traded publicly or holding assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. (C)</p> Signup and view all the answers

<p>When it prefers to comply with the full requirements of Australian Accounting Standards. (A)</p> Signup and view all the answers

<p>AASB 1060 General Purpose Financial Statements — Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities. (C)</p> Signup and view all the answers

<p>Based on whether they are ‘for-profit’ entities or ‘public-benefit’ entities then subclassified based on whether they are publicly accountable for their financial reports, and/or their size. (C)</p> Signup and view all the answers

<p>For-profit entities with total expenses greater than $30 million or Public benefit entities with total expenses greater than $30 million. (E)</p> Signup and view all the answers

<p>They are non-publicly accountable with total expenses less than $2 million which elect to be in Tier 3. (D)</p> Signup and view all the answers

<p>PBE Standards (D)</p> Signup and view all the answers

<p>Non-publicly accountable, not large, have total expenses &lt; $30 million (but &gt; $2 million), which elect to be in Tier 2. (A)</p> Signup and view all the answers

<p>For-profit private sector entities that do not have public accountability, not-for-profit private sector entities, and public sector entities other than the Australian Government and State, Territory and Local Governments. (C)</p> Signup and view all the answers

<p>To allow stakeholders to understand the extent to which the spcial purpose financial reports diverge from full Australian Accounting Standards. (A)</p> Signup and view all the answers

<p>A list of all shareholders. (A)</p> Signup and view all the answers

<p>Application of all recognition and measurement requirements in Australian Accounting Standards (D)</p> Signup and view all the answers

<p>The ineffectiveness of current disclosure requirements in accounting standards (B)</p> Signup and view all the answers

<p>To create a strategic plan addressing the impact of technological advancements on financial reporting and standard setting (D)</p> Signup and view all the answers

<p>To create a comprehensive global baseline of sustainability-related disclosure standards for investors (B)</p> Signup and view all the answers

<p>It demonstrated a response to the growing global demand for high quality and comparable sustainability disclosures. (D)</p> Signup and view all the answers

<p>IAS 19 Employee Benefits and IFRS 13 Fair Value Measurement (A)</p> Signup and view all the answers

<p>Depreciation, tax-effect accounting, leases, inventories, and employee benefits (D)</p> Signup and view all the answers

<p>The need to measure ‘performance’ from multiple perspectives (A)</p> Signup and view all the answers

<p>It positions financial reporting as a mere compliance exercise. (A)</p> Signup and view all the answers

<p>IFRS Accounting Standards (A)</p> Signup and view all the answers

<p>Enhancing the effectiveness of disclosures made in accordance with accounting standards. (D)</p> Signup and view all the answers

<p>Exposure Drafts on General Requirements for Disclosure of Sustainability-related Financial Information and Climate-related Disclosures (D)</p> Signup and view all the answers

<p>The standardization of hardware requirements for preparing financial reports. (A)</p> Signup and view all the answers

<p>To enable more effective measurement of performance without increasing the complexity of financial reporting. (D)</p> Signup and view all the answers

<p>They may not apply all recognition and measurement requirements in Australian Accounting Standards. (A)</p> Signup and view all the answers

<p>To promote global comparability and reduce differences in financial reporting standards. (D)</p> Signup and view all the answers

<p>Even if not required to report separately under IFRSs, an entity might need to provide IFRS-compliant information to a parent entity for consolidated statements. (C)</p> Signup and view all the answers

<p>The SEC eliminated the requirement for foreign companies registered with the US SEC to reconcile their IFRS-based financial statements to US GAAP. (A)</p> Signup and view all the answers

<p>Omitting topics not relevant to SMEs, such as segment reporting. (C)</p> Signup and view all the answers

<p>Entities must comply with a minimum set of Australian Accounting Standards. (A)</p> Signup and view all the answers

<p>It is currently undergoing its second comprehensive review by the IASB. (C)</p> Signup and view all the answers

<p>Improving the communication effectiveness of disclosures in financial statements. (B)</p> Signup and view all the answers

<p>Reducing differences in reporting standards among countries. (B)</p> Signup and view all the answers

<p>AASB 1060 includes similar disclosure requirements as IFRS for SMEs. (C)</p> Signup and view all the answers

<p>It simplifies many principles compared to the full IFRSs, such as amortizing goodwill. (C)</p> Signup and view all the answers

<p>The US SEC does not permit domestic issuers to adopt IFRSs. (C)</p> Signup and view all the answers

<p>SPFSs are prepared and presented in accordance with the specific information needs of the entity’s financial statement users. (B)</p> Signup and view all the answers

<p>Improving the structure of primary financial statements. (B)</p> Signup and view all the answers

<p>Enabling information to be delivered in an electronic format. (B)</p> Signup and view all the answers

<p>Using an alternative basis if required or permitted by local legislation, such as MPERS in Malaysia. (B)</p> Signup and view all the answers

<p>$13,000 (D)</p> Signup and view all the answers

<p>$33,000 (A)</p> Signup and view all the answers

<p>The carrying amount of assets is based on the assumption they will be recoverable through continued operations. (D)</p> Signup and view all the answers

<p>Relevance and Faithful Representation. (D)</p> Signup and view all the answers

<p>Helping users correct or confirm past evaluations by providing feedback. (A)</p> Signup and view all the answers

<p>Whether its omission, misstatement, or obscuring could be reasonably expected to influence decisions of primary users. (B)</p> Signup and view all the answers

<p>The transactions may be relevant due to the nature of the relationship between the directors and the entity, irrespective of the amounts involved. (D)</p> Signup and view all the answers

<p>An analyst uses a company's current financial results to forecast its future earnings and cash flows. (D)</p> Signup and view all the answers

<p>Because materiality application is considered entity-specific. (C)</p> Signup and view all the answers

<p>The nature and size of the item of financial information. (D)</p> Signup and view all the answers

<p>The entity should prepare financial statements on an alternative basis, which the Conceptual Framework does not specify. (C)</p> Signup and view all the answers

<p>Accrual basis accounting recognizes revenues when earned and expenses when incurred, regardless of cash flow, while cash basis accounting recognizes revenues and expenses only when cash changes hands. (A)</p> Signup and view all the answers

<p>When the entity expects to obtain greater economic benefits through continued use of the asset (C)</p> Signup and view all the answers

<p>By providing insights used to form expectations about past, present, or future events. (A)</p> Signup and view all the answers

<p>By ensuring the use of the same methods for the same items, either by different entities or by the same entity over different periods. (B)</p> Signup and view all the answers

<p>Uniformity may result in dissimilar items being treated or presented similarly, obscuring economic reality. (B)</p> Signup and view all the answers

<p>If obscuring the misstatement could reasonably be expected to influence decisions made by primary users of the financial reports. (A)</p> Signup and view all the answers

<p>It fails to reflect the differences in how economic benefits are expected to be derived from the two types of assets. (C)</p> Signup and view all the answers

<p>Disclosure enhances comparability by making users aware of the specific policies in place. (D)</p> Signup and view all the answers

<p>Confirming the market price used to measure the fair value of an asset traded in an active market. (A)</p> Signup and view all the answers

<p>Checking the inputs and processes used to determine reported information, such as a fair value model. (C)</p> Signup and view all the answers

<p>It assures users that financial information is faithfully represented. (B)</p> Signup and view all the answers

<p>Delays may reduce the relevance of that information to users’ decision making. (D)</p> Signup and view all the answers

<p>Unexpected events and delayed news can impact confidence and share prices. (B)</p> Signup and view all the answers

<p>The benefits from ensuring timeliness should be weighed against the costs of the decrease in the reliability of the information. (C)</p> Signup and view all the answers

<p>Technology has improved the timeliness of information disclosed by capturing and disseminating information more quickly. (D)</p> Signup and view all the answers

<p>Information to be clearly and concisely classified, characterized, and presented. (A)</p> Signup and view all the answers

<p>Reasonable knowledge of business and economic activities. (D)</p> Signup and view all the answers

<p>If it is difficult for users to understand because this would conflict with completeness. (C)</p> Signup and view all the answers

<p>Through artificial intelligence and machine learning applications, thereby making more information suitable to be disclosed. (C)</p> Signup and view all the answers

<p>Adopting the user's viewpoint to understand their informational needs, as if they lacked management's internal knowledge. (A)</p> Signup and view all the answers

<p>Difficulties in identifying relevant transactions and applying appropriate measurement techniques. (D)</p> Signup and view all the answers

<p>Identify the economic phenomenon about which information would be most useful to decision makers. (D)</p> Signup and view all the answers

<p>An investor analyzes a company's current financial performance against its past performance and against that of its competitors. (B)</p> Signup and view all the answers

<p>The current market value and potential future price volatility of the emission trading allowances. (A)</p> Signup and view all the answers

<p>There exist accounting solutions for all financial reporting problems. (C)</p> Signup and view all the answers

<p>The inherent uncertainty of predicting future events. (D)</p> Signup and view all the answers

<p>Adhering strictly to local regulatory requirements. (C)</p> Signup and view all the answers

<p>Professional judgment is required to make appropriate trade-offs among these characteristics. (B)</p> Signup and view all the answers

<p>Understanding how users believe the entity should be managed and perform its stewardship role. (D)</p> Signup and view all the answers

<p>Determine what specific information about the emission trading allowances would be most relevant. (B)</p> Signup and view all the answers

<p>The company should pursue the next most relevant type of information. (B)</p> Signup and view all the answers

<p>Maintaining consistent accounting policies and disclosing them transparently. (A)</p> Signup and view all the answers

<p>The disclosure was potentially useful to decision-makers and thus material. (D)</p> Signup and view all the answers

<p>There are no further steps. (D)</p> Signup and view all the answers

<p>To improve the consistency and verifiability of sustainability-related disclosures (D)</p> Signup and view all the answers

<p>Qualitative Characteristics (A)</p> Signup and view all the answers

<p>The inclusion of an item in financial statements (A)</p> Signup and view all the answers

<p>By providing a common framework for developing accounting standards (B)</p> Signup and view all the answers

<p>To gain insight when facing issues not explicitly covered by standards (A)</p> Signup and view all the answers

<p>An asset's carrying amount should not exceed its recoverable amount (A)</p> Signup and view all the answers

<p>The measurement bases including historical cost and current value (D)</p> Signup and view all the answers

<p>Users (A)</p> Signup and view all the answers

<p>The requirements of the specific IFRS take precedence (B)</p> Signup and view all the answers

<p>To evaluate management performance (B)</p> Signup and view all the answers

<p>Performance (C)</p> Signup and view all the answers

<p>By prioritizing international alignment with necessary modifications (D)</p> Signup and view all the answers

<p>Guides when and how effects of transactions should be recognized and measured (B)</p> Signup and view all the answers

<p>Elements of Financial Statements (C)</p> Signup and view all the answers

<p>They have to decide whether to recognize it under existing categories or disclose it separately. (C)</p> Signup and view all the answers

<p>Some users may find certain information more relevant than others depending on their context. (D)</p> Signup and view all the answers

<p>Preparers and users may have diverging views on what is considered useful. (A)</p> Signup and view all the answers

<p>Entities are unable to meet all users' varying information needs efficiently. (A)</p> Signup and view all the answers

<p>When the sale occurs, regardless of cash movement. (D)</p> Signup and view all the answers

<p>They enable the capture and reporting of large volumes of data, aiding efficiency. (D)</p> Signup and view all the answers

<p>The going concern assumption. (C)</p> Signup and view all the answers

<p>When projecting future economic benefits and management plans. (D)</p> Signup and view all the answers

<p>To present information that may assist in user decision-making processes. (C)</p> Signup and view all the answers

<p>Recording revenues upon cash receipt. (D)</p> Signup and view all the answers

<p>Users may misinterpret complex information, hindering effective decision-making. (D)</p> Signup and view all the answers

<p>Some investors may prioritize environmental information, while others may ignore it. (D)</p> Signup and view all the answers

<p>Specific user needs may not be fully addressed due to limited resources. (B)</p> Signup and view all the answers

<p>Observable prices other than those included within Level 1 (A)</p> Signup and view all the answers

<p>They improve the relevance or representation of faithful information. (D)</p> Signup and view all the answers

<p>It may enhance comparability but fails to ensure usefulness. (D)</p> Signup and view all the answers

<p>It balances the costs of providing information against the benefits derived. (B)</p> Signup and view all the answers

<p>Comparability (B)</p> Signup and view all the answers

<p>It could lower the costs while increasing the benefits provided to users. (B)</p> Signup and view all the answers

<p>The complexity of the entity’s transactions (A)</p> Signup and view all the answers

<p>Reason and implications of the change in accounting policy (C)</p> Signup and view all the answers

<p>To facilitate informed decision-making by users (D)</p> Signup and view all the answers

<p>It defines the threshold for how much information must be disclosed. (D)</p> Signup and view all the answers

<p>When compliance costs outweigh the benefits for small transactions (C)</p> Signup and view all the answers

<p>Improving the decision usefulness of reported information (D)</p> Signup and view all the answers

<p>Continuous engagement with user feedback (B)</p> Signup and view all the answers

The process of documenting an entity's financial status through reports.

Financial statements designed to meet the common needs of a wide range of users.

A structure guiding the preparation of consistent financial statements globally.

Attributes that make financial information useful for decision making.

The principle that dictates whether information is significant enough to influence decisions.

A measurement approach using both cost and fair value for financial reporting.

Global accounting standards ensuring consistency and comparability in financial statements.

The application of skills and insights in decision-making during financial reporting.

Management's accountability for using resources effectively for stakeholders.

Users who rely on financial reports for investment and lending decisions.

Also known as the balance sheet, shows assets, liabilities, and equity at a point in time.

Reports income, expenses, and profitability over a reporting period.

Shows cash inflows and outflows during a specific period.

Ensuring financial statements are similar in presentation for analysis.

Recognizes income and expenses when they are earned or incurred, not when cash is exchanged.

Prospective data provided to help users with future decision-making.

Various methods used beyond GPFS, such as updates and sustainability reports.

Significant consequences from decisions made based on financial reporting.

Effective allocation and usage of financial resources by managers.

Critical due to reliance of stakeholders on reported data for decision-making.

Regular communication provided to investors concerning company performance and expectations.

The board responsible for developing and issuing IFRSs.

Entity that develops accounting standards for Australia.

International Accounting Standard for the presentation of financial statements.

A system for numbering AASB standards to align with IFRS.

Date when a new accounting standard becomes applicable.

Section providing rationale behind the development of a standard.

Practical examples included to clarify application of standards.

Section in a standard indicating objections from IASB members.

Standard outlining accounting for lease agreements.

Lease agreements with a duration of 12 months or less.

List of defined terms relevant to financial reporting standards.

Initial statements explaining the purpose and application of a standard.

The right to govern the use of an identified asset during its lease term.

A specific asset recognized in a lease agreement that is clearly defined.

An entity required or choosing to prepare financial statements.

Financial reports aimed at meeting the needs of various stakeholders.

The structure outlining how financial statements should be prepared.

An entity with enhanced disclosure securities on issue.

A limited company with up to 50 shareholders.

A proprietary company meeting two out of three size criteria.

Any company distinct from a proprietary company.

A yearly report required from certain companies by law.

Reports prepared for specific needs and not general use.

Regulations entities must follow in Australia for financial reports.

Laws that dictate which entities must prepare financial reports.

Requirements imposed by law or governing bodies for entities.

A legal document detailing the terms of a partnership.

A legal document outlining the terms for a trust's operation.

A contractual arrangement whereby two or more parties undertake financial reporting together.

The standard for presenting financial statements in Australia.

Standard that outlines the preparation of cash flow statements.

Defines accounting policies, estimates, and handling errors.

Special Purpose Financial Statements required for specific entities.

Financial statements must accurately reflect the financial position.

Various groups that rely on financial reporting for different needs.

IASB project aimed at improving disclosure requirements.

Global standards for sustainability-related disclosures.

International Sustainability Standards Board for sustainability disclosures.

Rules and guidelines for financial reporting compliance.

How advancements affect financial reporting and analysis.

Challenges in meeting diverse information needs of stakeholders.

Voluntary disclosures that provide additional context.

Standard that outlines the application of reporting tiers.

Ongoing initiatives aimed at improving financial reporting.

Information entities must provide for transparency in financial reporting.

Significant accounting policies that impact financial statements significantly.

A model distinguishing between Tier 1 and Tier 2 reporting requirements.

Entities must meet all recognition, measurement, and disclosure requirements.

Requirements similar to Tier 1 but with simplified disclosures.

Entities are publicly accountable if they have traded instruments or fiduciary responsibilities.

The authority setting accounting standards in New Zealand.

Categorization of entities based on their business objectives.

Reduced reporting requirements for entities, easing compliance.

Regulatory authority overseeing financial reporting in New Zealand.

Recording revenues and expenses when they are earned or incurred, not when cash is exchanged.

Recording transactions only when cash is received or paid.

Legislation that governs companies in Singapore, including financial statement requirements.

Malaysian legislation that outlines company regulation and financial reporting obligations.

The process of following International Financial Reporting Standards for financial reporting.

Malaysian Private Entities Reporting Standard for eligible private entities in Malaysia.

Combined financial reports that include all subsidiaries and parent entities' data.

Initiatives to harmonize financial reporting standards across countries.

A simplified version of IFRS designed for small and medium-sized entities.

Financial statements prepared for specific purposes or audiences, not universally applicable.

Determining the significance of information in financial reporting.

Delivering financial information through digital means.

Additional narratives accompanying financial statements to provide context and clarity.

Collaboration between the US and international standards boards to align accounting practices.

A process to update and amend the IFRS for SMEs based on feedback and changes.

Reports designed for a broad range of users to make informed decisions.

The requirements for specific data by users to make decisions.

Differing data requirements from various primary user groups.

The estimated selling price of an asset minus selling costs.

The present value of future cash flows from an asset.

When IFRS provisions differ from the Conceptual Framework.

A requirement for reporting that accurately reflects the financial position.

Regulators, public, and employees seek different financial information.

An organization that establishes accounting standards and practices.

A financial statement detailing changes in equity capital over time.

Companies whose shares are offered to the general public on stock exchanges.

Profit calculated by recognizing revenue and expenses when earned or incurred, not when cash is received or paid.

Profit calculated based on cash transactions, only recognizing income and expenses when cash is exchanged.

Accrual measures expected profits widely, while cash shows actual money exchanged.

Assumes a business will continue to operate in the foreseeable future, influencing asset valuation.

Information that can influence users' decisions based on its predictive or confirmatory value.

Information is considered material if its omission or misstatement could affect decision-making.

Financial information must be confirmed or substantiated by independent observers.

Financial information should be available to users in time for them to make decisions.

Information should be presented clearly so users can comprehend its meaning without confusion.

Total cash received during the period from sale of products or services, which may differ from sales recorded.

Sales made where payment is expected to be received at a later date, increasing accounts receivable.

Cost incurred for an insurance policy, impacting profit calculation during its coverage period.

Assets may be valued based on their potential future contributions to revenue or service delivery.

Disclosure of financial information regarding sustainability-related matters.

Financial reporting aimed at meeting the needs of a wide range of users.

International standards serving as a baseline for sustainability disclosures.

Attributes that make financial information useful for decision-making.

Formal records of the financial activities and position of a business.

Conditions under which financial transactions are recorded in financial statements.

Methods used to determine the monetary amounts at which items are recognized.

Responsibility of management to use resources effectively.

Investors and creditors relying on reports for decision-making.

When an IFRS is inconsistent, the standard overrides the Framework.

Guidance provided for standards development and reporting consistency.

Removal of an asset or liability from the financial statements.

A right that has the potential to produce economic benefits.

International Financial Reporting Standard for fair value measurement.

A classification of inputs used for fair value measurement.

Quoted prices for identical assets or liabilities in active markets.

Observable prices for similar assets or liabilities, not identical.

Unobservable inputs for asset or liability valuation.

Features improving relevance and representation of financial info.

The trade-off between the cost of providing information and its benefits.

Modifications in the principles used for financial reporting.

Extra information provided to clarify financial statements.

Basic rules guiding preparation of International Financial Reporting Standards.

Financial information that accurately reflects reality.

An event or transaction that generates useful financial information.

The significance of financial information in decision-making processes.

What users believe should be shown in financial reports based on discussions or availability.

Looking at decisions from the user's viewpoint to assess relevant information.

Balancing the importance of relevance and accuracy in financial information.

Excess permits held under emission trading schemes that can be sold.

Using qualitative characteristics to improve the usefulness of financial reports.

The extent to which needed financial information can be accessed for reporting.

Impacts that financial transactions have on the entity's reports.

Instructions or recommendations provided by governing bodies for financial reporting.

The primary aim of financial reporting to provide relevant information for decision making.

The process where preparers decide which information to include for users’ needs.

Users' understanding of financial information affecting its perceived usefulness.

Different users have distinct preferences and requirements from financial statements.

Users and preparers may view the usefulness of information differently.

Limitations that prevent full disclosure of all potentially useful information in reports.

Recognizes revenue and expenses when they occur, not when cash is exchanged.

Revenues are acknowledged when earned rather than when cash is received.

Expenses are recorded when incurred, irrespective of cash outflow.

The process of allocating the cost of a tangible asset over its useful life.

External factors influencing financial reporting context and user interpretations.

Provides a structure for making informed financial reporting decisions.

Lack of clear rules for new financial reporting items due to rapid technological change.

Recognition that information relevance can vary widely among different stakeholders.

Using past and current data to forecast an entity’s upcoming financial status.

Using the same methods for reporting financial information over time or across entities.

The practice of revealing the accounting methods used in preparing financial statements.

Confirmation of information from actual market prices or data.

Assessing reported information through calculations or models that rely on inputs.

An individual presumed to have knowledge of business and economic activities when reading financial statements.

The influence of advancements on the accessibility and analysis of financial information.

Expected gains from assets in ongoing operations versus discontinued operations.

The necessity of outlining accounting policies and any changes that affect financial statements.