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Assignment Question

Assignment Question.

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Assignment Question

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  1. Assignment Question The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events, and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework. The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation. [IAS 1.15]

  2. Assignment Question – cont’d By using the relevant international accounting standards (IASs) which are taught in the module APC311, you are required to provide critical discussions on the above statement.

  3. Assignment Question – cont’d Your assignment should aim to provide readers with comprehensive knowledge and critical reviews of this area covering, for example: • A knowledge of different accounting treatments in individual accounting standards • A knowledge of implications of different accounting treatments on usefulness of financial statements • Your own understandings of, comments on, arguments and contributions to the topic, such as key qualitative characteristics, true and fair view/fair presentation, creative accounting, etc.. • Any other important issues which you think should be addressed

  4. Some Key words • Fair presentation: • Qualitative characteristics • Individual accounting standards • Usefulness of financial statements to various users • Critical discussions • Needs a good understanding of the question • Arguments, comments, discussions, suggestions, etc. • Not only introduction, description, and copy & paste

  5. Understanding • What is fair presentation? or • What is the usefulness of financial statements? • How can financial statements be fairly presented (or useful to users)? • What are individual IASs/IFRSs? • How do different accounting treatments in individual IASs/IFRSs impact on the fair presentation? (creative accounting)

  6. Understanding • True and fair view/fair presentation • 4 qualitative characteristics • IASs/IFRSs: • Accounting for leases (IAS 17) • Accounting for borrowing costs (IAS 23) • Accounting for tangible fixed asset (IAS 16) • Accounting for provisions (IAS 37) • Accounting for impairment of assets (IAS 36) • Accounting for intangible assets (IAS 38) • Accounting for purchased goodwill (IFRS 3) • ……….

  7. Understanding **Different accounting treatments have different impacts on financial statements**

  8. Fair Presentation IAS17 IAS23 Understandability Relevance IAS38 IFRS3 F. P. Reliability Comparability IAS16 IAS36 IAS36

  9. Tips • Understand the question • Review all topics delivered in the module • Do homework on creative accounting issue • Read recommended (Sunspace) and other relevant readings • Knowledge in your work: • Precise and concise • Relevant and comparative • Essential and in-depth • Constructive and innovative

  10. Other issues • Submission • Library • Friday 20th May 2011

  11. Questions?

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