Common branches of Accounting

1. Financial Accounting Expense Recognition Principles

2. Management Accounting 1. Matching concept
3. Cost Accounting 2. Systematic and rational allocation
4. Auditing 3. Immediate recognition
5. Tax Accounting
6. Government Accounting Two Concepts of Capital
7. Fiduciary Accounting 1. Financial concept of capital
8. Estate Accounting 2. Physical concept of capital
9. Social Accounting
10. Institutional Accounting Concepts of Capital Maintenance
11. Accounting systems 1. Financial capital maintenance
12. Accounting research 2. Physical capital maintenance

Qualitative Characteristics of Conceptual Framework PAS 1

1. Fundamental qualitative characteristics To meet the objective financial statements provide info
2. Enhancing qualitative characteristics about an entity’s​​:
1. Assets (economic resources)
Fundamental Qualitative Characteristics 2. Liabilities (economic obligations)
1. Relevance 3. Equity
2. Faithful representation 4. Income
5. Expenses
Enhancing Qualitative Characteristics 6. Contribution by, and distributions to, owners
1. Comparability 7. Cash flows
2. Verifiability
3. Timeliness General features of financial statements
4. Understandability
1. Fair presentation and compliance with PFRSs
Classifications of Relevance 2. Going concern
1. Predictive Value 3. Accrual basis of accounting
2. Confirmatory Value 4. Materiality and aggregation
5. Offsetting
Four – step Materiality Process 6. Frequency of reporting
1. Identify 7. Comparative information
2. Assess 8. Consistency of presentation
3. Organize
4. Review Statement of financial includes the line items that
present the following amount:
Characteristics of a Faithful representation 1. Property, plant and equipment
1. Completeness 2. Investment property
2. Neutrality 3. Intangible assets
3. Free from error 4. Financial assets
5. Investments accounted for using the equity method
Types of Verifiability 6. Biological assets
1. Direct verification 7. Inventories
2. Indirect verification 8. Trade and other receivables
9. Cash and cash equivalents
Potentials of Economic benefits 10. Assets held for sale, including disposal groups
1. Productivity 11. Trade and other payables
2. Convertibility into cash or cash equivalents 12. Provisions
3. Capability to reduce cash outflows 13. Financial liabilities
14. Current tax liabilities & current tax assets
Classifications of an Obligating event 15. Deferred tax liabilities & deferred tax assets
1. Legal obligation 16. Liabilities included in disposal groups
2. Constructive obligation 17. Non-controlling interests
18. Issued capital and reserves attributable to owners of the 2. First-In, First-Out (FIFO)
parent 3. Weighted Average
Presentation of OCI
1. Those for which reclassification adjustments is ​allowed PAS 7
2. Those for which reclassification adjustment is ​not
allowed Classification of cash flows
1. Operating activities
Type of other comprehensive income 2. Investing activities
1. Changes in revaluation surplus 3. Financing activities
2. Remeasurements of the net defined benefit liability
(asset)
3. Fair value changes in FVOCI Operating activities may be reported as:
4. Translation differences on foreign operations
1. Direct method
5. Effective portion of cash flow hedges
2. Indirect method
Purpose of financial statements
PAS 8
1. Primary objective: To provide info about the financial Two types of accounting changes
position, financial performance, and cash flows of an 1. Change in accounting policy
entity that is useful to a wide range of users in making 2. Change in accounting estimate
economic decisions
2. Secondary objective: to show the results of
management’s stewardship over the entity’s resources. PAS 10

Structures of Notes Two types of events after the reporting period

1. adjusting events after the reporting period

1. General information on the reporting entity
2. non-adjusting events after the reporting
2. Statement of compliance with the PFRS and Basis of
preparation of financial statements period
3. Summary of significant accounting policies PAS 12
4. Disaggregation (breakdowns) of the line items in the
other financial statements and other supporting Differences in the tax laws
information
5. Other disclosures required by PFRS 1. permanent differences
6. Other disclosures not required by PFRS but the 2. temporary differences
management deems relevant to the understanding of
the financial statements. examples of permanent differences

1. interest income on government bonds and

PAS 2
treasury bills
Examples of Inventories
2. interest income on bank deposits
1. Merchandise purchased by trading entity and held for
resale. 3. dividend income
2. Lang and other property held for sale in the ordinary classifications of temporary differences
course of business
3. Finished goods, goods undergoing production and raw 1. taxable temporary differences
materials and supplies awaiting use in the production 2. deductible temporary differences
process by a manufacturing entity
classifications of timing differences
Cost of inventories comprises​​:
1. Purchase cost 1. tax base
2. Conversion cost 2. tax base of an asset
3. Other cost 3. tax base of liability

Cost formulas
1. Specific identification
PAS 16

Capitalization of the following subsequent expenditure

1. replacement costs
2. major inspections

PAS 17

two ways of conducting foreign activities

1. foreign currency transaction

2. foreign operations

PAS 24

key management personnel compensation

1. short -term employee benefits

2. post -employment benefits
3. other long-term benefits
4. termination benefits
5. share - based payment

PAS 28

Types of investment

1. investment measured at fair - (nature of

relationship with investee : regular investor )(
applicable reporting standard : PFRS 9)
2. investment in associate (nature of relationship
with investee : significant influence )( applicable
reporting standard : PAS 28)
3. investment in subsidiary (nature of relationship
with investee : control )( applicable reporting
standard : PFRS 3 and PFRS 10)
4. investment in joint venture (nature of relationship
with investee : Joint control )( applicable reporting
standard : PFRS 11 and PAS 28)

PAS 33

Types of earnings per share

1. basic earnings per share

2. diluted earnings per share