1. When an entity departs from a standard, entity should
disclose the ff:
1.a. Management has concluded that FS
is fairly presented
1.b. It has complied with applicable
standards and interpretation, except that it has departed from a particular
requirement to achieve fair presentation.
1.c. The title of the standard or
interpretation from which entity has departed. The treatment adopted
1.d. Financial impact of the departure on
each item that would have been reported in complying with the
requirement
2. Going concern is relevant when mgt shall make an estimate
of the expected outcome of future events, such as recoverability of AR and useful
life of noncurrent assets
3. Uncertainties regarding the ability of the entity to continue
as a going concern shall be fully disclosed
4. Investment income is presented separately in the income
statement
5. Materiality is relativity and nature of an item(bribe)
6. Expenditure related to a provision and any reimbursement
from a third party can be offset and only the net expenditure is presented as
expense in the income statement
7. Offsetting can be displayed when gains and losses from
trading securities are netted against each other
8. Entity shall disclose comparative information in respect of
the previous period for all the amounts reported in the current period’s financial
statements
9. The outcome of uncertain events at the end of the
preceding period and is yet to be resolved, are disclosed in the current period
( legal dispute). Users shall benefit from information that an uncertainty existed
at the end of the immediately preceding period, and steps have been taken during
the current period to resolve the uncertainty.
10. When entity makes retrospective restatement, 3 statement
of FS shall be presented: end of the current period, previous period, beginning of
the earliest comparative period.
11. Financial structure-source of financing for assets. Indicates
how profits and cash flows will be distributed between creditors and owners
12. Financial flexibility- use its available cash for unexpected
requirements and investment opportunities or raise cash through borrowing and
sale of securities or sale of assets without disrupting normal operations.
13. Cash equivalents are held for the purpose of meeting short-
term cash rather than for investment purposes
14. In cash equivalents, what is important is the date of
purchase which should be 3 months or less before maturity
15. Financial asset held for trading or trading securities
