Overview of IFRS Standards and IFRS 1

The process of measuring a financial asset or liability at fair value plus/minus transaction costs.

The price at which an asset or liability could be exchanged between willing parties.

The value at which a financial asset is measured, if designed to collect cash flows.

Requirement that the asset must generate cash flows solely of principal and interest.

Classification for assets held to collect cash flows and sell the assets.

The process of changing the classification of financial assets when business model changes.

Obligations of an entity that are measured at amortised cost, except for certain exceptions.

A method for amortising financial liabilities to reflect their true cost over time.

A financial report at the start of a period showing assets, liabilities, and equity.

Revising previous financial statements due to new accounting policies or errors.

Requirement for entities to state their financials comply with IFRS Standards unreservedly.

Financial statements must present an accurate and fair view of company finances.

Assumption that an entity will continue to operate for the foreseeable future.

Guidelines for inventory cost measurement and expense recognition.

Estimated selling price of inventory minus selling costs.

Methods used to assign costs, e.g., FIFO, weighted average, specific identification.

Events after the reporting period that do not affect financial statements but require disclosures if material.

International Financial Reporting Standard that supersedes IAS 11 for construction contracts.

The progress of contract activity expressed as a percentage for revenue recognition.

Recognizing revenue based on the reliable estimate of a construction contract's outcome.

Recognizing an expense immediately when total contract costs are likely to exceed total contract revenue.

International Accounting Standard that prescribes the treatment of income taxes.

An obligation for unpaid taxes that are recognized as a liability on the financial statements.

Excess payment of current tax recognized as an asset.

Costs incurred when an entity borrows funds.

An individual or entity connected to the reporting entity.

Ability to govern financial policies of an entity.

Power to participate in financial and operating policy decisions.

Individuals with authority for planning and controlling activities.

Entities that are members of the same group are related.

Earnings per share calculated using the net income attributable to common shares and average shares outstanding.

Earnings per share that accounts for the potential dilution from convertible securities and options.

A calculation used to determine the average number of shares outstanding during a reporting period.

Financial statements covering a shorter period than the fiscal year, providing updates on financial performance.

Required elements in an interim report, including financial statements and explanatory notes.

Adjusting net income to reflect earnings for common equity holders, crucial for EPS calculations.

The impact of contracts, such as options and warrants, on the calculation of diluted EPS.

Previous financial data included for analysis in interim reports to enhance comparison.

The distinction relies on the obligation to deliver cash or financial assets.

If the number of shares is not fixed, it affects equity classification.

An instrument like a convertible note divided into equity and liability parts.

The equity part is calculated as the fair value difference of the compound instrument.

Offset only when legally enforceable and intent to set-off or settle simultaneously.

Standard for calculating and presenting earnings per share (EPS) for public entities.

Both must be presented equally in financial statements, reflecting profit per share.

Dilution refers to potential reduction in EPS or increase in loss per share from share issuance.