Module 1 - L.1.6 Part 2

<p>Disclosure of the fair value of the property. (C)</p> Signup and view all the answers

<p>Apply it consistently across all of its investment property. (D)</p> Signup and view all the answers

<p>A retail store owned and operated by the entity. (C)</p> Signup and view all the answers

<p>Cost model. (A)</p> Signup and view all the answers

<p>PPE is held for use in production or supply of goods/services or for administrative purposes, while investment property is held to earn rentals or for capital appreciation. (A)</p> Signup and view all the answers

<p>When the entity loses control of the recognised asset. (A)</p> Signup and view all the answers

<p>A right-of-use asset. (D)</p> Signup and view all the answers

<p>The fair value of plan assets, if any. (A)</p> Signup and view all the answers

<p>Current market yields on high-quality corporate bonds. (D)</p> Signup and view all the answers

<p>A choice between cost and fair value. (A)</p> Signup and view all the answers

<p>To provide additional information and explanations. (B)</p> Signup and view all the answers

<p>Professional judgement. (B)</p> Signup and view all the answers

<p>It lacks relevance for assets the entity doesn't intend to sell. (D)</p> Signup and view all the answers

<p>It is easily understood and inexpensive to implement. (A)</p> Signup and view all the answers

<p>A subjective assessment of influence on users' decisions. (A)</p> Signup and view all the answers

<p>Identifying concentrations of risk. (D)</p> Signup and view all the answers

<p>The amount should be described clearly and accurately as being an estimate, explaining its nature and limitations. (A)</p> Signup and view all the answers

<p>To ensure the selection made is most suitable and provides the most accurate representation of the organisation. (A)</p> Signup and view all the answers

<p>The Conceptual Framework. (A)</p> Signup and view all the answers

<p>Disclosure overload, which can hinder effective decision-making. (C)</p> Signup and view all the answers

<p>The fair presentation of the financial statements. (C)</p> Signup and view all the answers

<p>To provide additional information and explanations to assist users in understanding the financial statements. (D)</p> Signup and view all the answers

<p>That disclosures are clear and effective in informing users as to the entity’s financial performance and position. (C)</p> Signup and view all the answers

<p>Balancing the provision of relevant information that faithfully represents the entity with the need for comparable information across entities and periods. (A)</p> Signup and view all the answers

<p>They should not negatively impact the use of information disclosed. (C)</p> Signup and view all the answers

<p>The objective of financial reporting guides disclosures, ensuring users have useful information for decision-making. (C)</p> Signup and view all the answers

<p>It ensures that information provided is both relevant and reliable. (D)</p> Signup and view all the answers

<p>A biased or misleading representation of the organization. (B)</p> Signup and view all the answers

<p>It can lead to disclosure overload and hinder effective decision-making. (C)</p> Signup and view all the answers

<p>Items presented in the financial statements and items disclosed in the notes to the financial statements. (C)</p> Signup and view all the answers

<p>TAS 40 recognizes gains or losses from changes in fair value in profit or loss, while IAS 16 accumulates increases in OCI. (D)</p> Signup and view all the answers

<p>It may not accurately reflect the entity's operational performance due to external factors. (D)</p> Signup and view all the answers

<p>Because some entities may measure investment properties at cost, while others use fair value. (C)</p> Signup and view all the answers

<p>To evaluate whether the overarching objective of providing useful information for decision-making is being met. (B)</p> Signup and view all the answers

<p>It enables faster and easier predictions informed by vast amounts of data. (D)</p> Signup and view all the answers

<p>To provide a coherent set of objectives, assumptions, principles, and concepts within which those judgements are made. (C)</p> Signup and view all the answers

<p>The fair value of the investment properties. (D)</p> Signup and view all the answers

<p>By complying with applicable IFRSs. (D)</p> Signup and view all the answers

<p>Professional judgement involves determining the materiality of particular items. (D)</p> Signup and view all the answers

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

<p>Guidance set out in IAS 8. (D)</p> Signup and view all the answers

<p>When legal rules in that country or jurisdiction allow it and compliance with the IFRS would be very misleading. (B)</p> Signup and view all the answers

<p>The result for the year is affected by fair value movements. (D)</p> Signup and view all the answers

<p>Entities for which the Corporations Act applies. (C)</p> Signup and view all the answers

<p>Making decisions based on an objective review of relevant data. (C)</p> Signup and view all the answers

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

<p>A book of rules for compliance. (D)</p> Signup and view all the answers

<p>They require a combination of conceptual and practical knowledge to diagnose and solve. (C)</p> Signup and view all the answers

<p>Mask poor results by providing information in a manner that is not easily interpreted or analyzed. (A)</p> Signup and view all the answers

<p>To provide users with information to enable them to achieve effective decision making. (A)</p> Signup and view all the answers

<p>Determining the useful life of an asset for depreciation purposes. (D)</p> Signup and view all the answers

<p>Tangible assets used in the production or supply of goods or services, for rental to others, or for administrative purposes. (D)</p> Signup and view all the answers

<p>To provide financial information about the reporting entity that is useful to its primary users for making decisions about providing resources to the entity. (B)</p> Signup and view all the answers

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

<p>The IFRS takes precedence. (A)</p> Signup and view all the answers

<p>Accrual basis of accounting and going concern. (A)</p> Signup and view all the answers

<p>Relevance and faithful representation (A)</p> Signup and view all the answers

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

<p>Requirement for the entity to have a present obligation, obligation to transfer an economic benefit, present obligation exists as a result of past events. (C)</p> Signup and view all the answers

<p>An increase in assets or a reduction in liabilities, and an increase in equity, other than as a result of a contribution from owners. (A)</p> Signup and view all the answers

Property held to earn rentals or for capital appreciation, not for production or sale.

Includes land for long-term appreciation, leased buildings, and undeveloped land for investment.

A measurement model allowing entities to value investment properties based on current market conditions.

A measurement model that values investment property based on its original purchase cost.

TAS 40 prescribes this model based on the purpose and nature of the asset.

IAS 40 requires the same measurement basis to be applied across all investment properties.

Entities using the cost model must disclose the fair value of their investment property.

Different measurement bases provide various qualitative insights for financial reporting.

Accounting standard for investment property distinct from TAS 16.

Standard regulating accounting for property, plant, and equipment.

TAS 16 allows choice between methods for valuing assets.

Income not included in profit or loss but affects equity.

In TAS 40, changes in fair value for investment properties are recognized immediately.

The quality ensuring that information can be compared across entities and periods.

Entities using cost model must disclose fair value in notes.

Increases in asset values not yet realized through a transaction.

Judgement about the significance of financial information.

The skill of making informed decisions beyond strict rules.

IFRSs prioritize broad principles over specific rules.

Financial reporting's goal is to provide relevant data for decision-making.

Use of technology to enhance decision-making and analysis.

The foundation of concepts that guide the development of accounting standards.

Achieving accurate representation in financial reporting via IFRSs compliance.

Guidelines selected and applied as per IAS 8 for financial statements preparation.

Extra information provided when IFRSs alone aren’t sufficient for clarity.

An exception allowing different accounting treatment when specific IFRS misleads.

Requirements to disclose when IFRS departures occur under rare circumstances.

Maintaining uniformity in how information is disclosed over periods.

Provides useful financial information to external users for decision-making.

Recording revenues and expenses when earned or incurred, not cash flow.

The assumption that an entity will continue its operations in the foreseeable future.

Attributes that enhance the usefulness of financial information for decision-makers.

Relevance and faithful representation are essential for useful financial information.

Assets, liabilities, equity, income, and expenses as key financial statement components.

Resources controlled by an entity expected to provide future benefits.

Present obligations to transfer economic benefits due to past events.

Amounts included in financial reports that cannot be determined exactly.

Financial information that accurately reflects the economic phenomena it represents.

Too much information in financial reports that can confuse users.

To provide additional context and clarity to the financial statements.

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

Information that assists users in understanding financial statements.

The ability to compare financial information across periods and entities.

Standards that determine if information should be disclosed in financial reports.

A structured approach to develop estimates for financial reporting.

Conditions under which items can be included in financial statements.

The clarity and openness of information provided in financial statements.

The process of removing a recognized asset or liability from the financial statements.

The methods used to measure assets and liabilities, including historical cost and fair value.

The price an asset would sell for in an orderly market transaction at a specific date.

The original purchase price of an asset, plus any related transaction costs.

A standard requiring lessees to recognize right-of-use assets and lease liabilities.

A standard that measures long-term employee benefits at present value of obligations.

Mandatory information provided to explain and enhance understanding of financial statements.