Chore ito? SUMMARY Atsumetions | PRINCIPLES | ConstTRAWITS. ee od 2 6eing Concern | aRevenve Sacegnlin, Rerometay unk |S Bopide tuogntinn [ied inst ee! S hamal i eet ‘ QuaLicative — 1 Qasaceunsees 1 FRendamenval yeas VS phaneiog, yeahs Se concen —_ObECAWE ! FeAMEHOR PreAdE Financial iNermalin_! Kiceaa, AOA Ye egerting ante [Fics Uae Ceronony ATE wa © erctng |r "Ung! 1 deetentiat inuestes, | papas a Jouantins, Sd ek ee cea in ating decineeea 1 MOG eaamees OME aces , \ QUALITATIVE ChARACERETICS HYFUNDAINENTAL QuRLITES ©) RELEVANCE = te be relent, aciomiinas ingamation rom be capable og making diene io @ decision P-Readchoe value - ig N hase acon Timp to quiickive prceures vvea by imectar Wo Gam thsir cum Gptctahiong aon the Wet C= Congiematary, Vedue > tdevant infamaion Te tee cer ompine or encet sce tpetationt TM -Matavatity = ingemation ic mati if eng ® oF migttabing A cauld ingloerve decicins tte Uuig mae onthe Dosis of the spattt Firancid infamation weve Be Preaichve and 7 T 2025 | rr s_Acheal Sole | tm) bSm | Bm cept) oe | eK; SOK Cartant | Peadie uel rennet 1 Projected “ QUAUTAIVE CHARACKEENSTIES Rimany YiNE 6% TART PUNE Tao Aecamting Injamaion | Tee CUBATURE Chenders 4 cost) RARCHY OF ACCOUNTING UNITES ‘DD FANTFUL FERRESENTANION = mang thatthe Tenet a designe matin ah ety used oe sagged: LE -Commereness = a ingamation that & Tonrsany, (eng cesta 6 eevee N= Neots = 4 company cannot sled ingamatin (© tee ome Gok MIMCHINd parties ont onc: = Feee Gram Geter = bn ngamatien em tha FE fom roe Ube a mare cere (LiAheA) qtetntain a nance Sen. [EE] + som cerned SomPHVEOES = KE Ane an impoinment chad We strat K wath in gles FE Rene FS chen be srg Wena = hood or hod chard be ceperted Tee (oan Eegee - Beet Sheld be minimal aad can be acai Wind Jasin shad Ye aveided COIS 9 Ricleading etesentation of semething devignea te cteale Gaverate. imgrescion- Scanned with CamScannerCHASER. «ww F SuMMARY [ CONTINLATION J QUALITATIVE CHARACTERIENGS 2 ENHANCING SORLITIES NL> Meriatenty. + ccc oni independent measueets using the came methods, Adein Gator C= emtarsind Ny -intermation that it Treasted and ceqerted in a timer manne Ae Aged companies 1 considered Smpotable Le Sdtrestandottity + i Me quatily ingermation that tals ceasondoly infermed: cents: Mets Sea Ae SHGnigicanee T = Mimetnars - having ingermation avaleble be decision-makers begere loin Be capacity be ingioence decisions JdiGonal wjermation aloo Enhancing avatities YenGA DAN, > same metheds G- straight tine cerpedval Kampatd® YY * compotabte within the inducing Undastdndolo ly = ude donddate Wy ¢ roma! gece erst Vimetingss ~ Depeediable ems thatd twe lag Ie Se Beading —comesinas te _cotcotater shold be degtedated Recogni red Igmdiohehy Matteriaiy Relevance Compete tingh Free (tom emnoe Timely Raymientation P Compsare [ate fleas ingermedion about Race Blemenis LE & fardin Bolance cheet ~ contingent tah, = Rare Gabaihy 3 net fork gq. FS eg curtay occamting period buy Centigint (tabiliver trad ate Weewy B mteur bz canrot be estimated crald be incuded in NOVS to FLCEsPocknetes)- CIAS 34) By obligating tuent such os Warranty 4 enenls —4 Extimated a, Liabity for Lied % monte BASIC ELEMENTS, A Assy = BR pretent temenit fiotie conieeln aby He entity at a cut st post commis An femomic cesorre If A Mgnt thee hay the gotenxal te giodice tconami, Senet 1. -Latanrs - & resent obtigation 9% an entity © Umonsger on economic fefomred GeO read of gost cunt E - Rauty the ceridual interest im the accehe @ the emits apler deducing a te Vabities T -Ancome - Revs ard tains. Increases tn eememnit Woanethe dating He aeceunting Peas in He erm of inflows o encoshment Omthe we decreases of Vides that teulh in Incersses In tqudy, sHher than thure etlehing sepbesiong team way Rectcpants E = bepenses = toy Tarcet ord (asses Orettases in ceona(c Weretit dering He ccranting gericd inthe corm oy aktlass or depletions of assets or incortencas of lidbilities Hat reault in ecetoaet _2n_eauity. Lather tian thase felting, te dictringting 2 fauty gorticnants RECOGNITION MEASUREMENT AND OiccLoguee CONCERTS ASSUMPTIONS «PRINCIPLES —_CONCIB AUNTS G- foing cmnceen, MeMeaanemm — C- Cost E ‘Beonomic Eaty — A-Revenve Recognition Ms monetany Orit E-Eypente Cecognibion P -eriodicihy E -Fu Dicdosure A= Accval THEO LeveL : THE “Bow” IMOLEMENTATION, RMD CONCEPTS - thee are concepy epiin _aAaEaear— how" companies Shad reeagnite meas, And eepork Financial elements and tutte Scanned with CamScanner.] 1 7 2 ee wewwvwuve®g wuvuwvwwvvwvwwe Cesetee «yo +: Summuey [oonnnvanon RMD concerts ASSUMPTIONS, B= foing Cont -cempany Ye lest lag enaghs fo ted Meets and commtennie Vecarknued cpeation 2 Vapey megiesiout ne due te wontergting = intone 2) E__- Ecarecmic Entity = company Keeps As activity “ssqatcte, yon ounms and oe eciness onde UM. + Monetary Grit = meme «5 the commas deanna Seonkigatetny CALELE isin Pre) ond stolodity Cractoring gour ¢ peo) oF HE erse Bo fevadaly = He peat cagany note NS temo ackvi kes in to Hone pected Conon sintein) Some burinesces eve Seaseral products (oie gloat 4 sux) Covey ceases net compatdete tings hae ciggectnt Beers geodials gered Pech ceason-) AL ~Aecva Gagig ¢ Accounting ~ Warsoctons range cf income fom are cecerded TH he grad in Cahich the tums caw (By Bit - cach only) BASIC PRINCIPLES oF ACCOUNTING M_- Meascement Princigtes © Hictosical Gst_-i genmally traght tbe 9 FARM ceerenntakin of the amawnt paid fr a giv en. fe Curent Value _- reclals condibions at the wreactement date WS fee Vale « Sopngioeondyan, 2) Value in ute Acces 4) Bubgitlinent Valve -Liabillly 4) Gomtent Cosh - Commyury valve after degeciaten BASIC PRINCIPLES OF AccoUNTING Lconnnuannas] Re Reorve Recogsition Principle “Whim an enbly Ayren 1 gergorm & Leevice oe fet) a podect fe a customer ,* has 4 _pectermane sbigatin “Requites ther comptinies etcegnize teemnue fn tre accamting errioa in Which the ertomonce FH SakeGied: & Sepmnse Recognien Pricciple - Aptos a using 4" FE athele oF teeming of Halbtity deing & period ms a cect of deluring or gladecing goods and/or cenderinn Services EXOEKSE RECOGNITION TPS oF cose ELAMONSIIp §—-_BECOHNETEN Product Cass cect celaincnip — S*eoBrite in + Matera trerseen cont 4 Sian revenue Starve (mating) 0 diced Coy BeoKenshle— weucees between Cost evene Reugnivon -“Mateniog, Priecigle” \ “Reed Wwurg Udon reoeata | GUN Deedesice Principle ~ Providing ingarmation Tmectone & inplotwe the Gudgement 2rd decicins FO0 Chama see Reovided: Hreaugh * @ Foanda\ stalemente 1 Mets & the Financial Slaltnants © Sopetem entary Sager mation inde Mee Renrancing qutdy “cemletenece”™ MRslanaken are in Hote be FS, Soy behind Me face q FS khat 6 RKcitar Scanned with CamScannerCAUAEE to ¥! SoMMARY [CoNMNUANON T Cost CONSTRAINT ~ Fete Principle 2 Camporia mush weigh the cote % providing We myamatin ageinse the benepit that can de deried geen ccing O° © Cte -matving odes ancl gaetnment egmcies Me Sot chneeh onatyers Torgae mating Final Unait ingormatbing! Ceauitementc: - Bin onda bs iucttey, Seauiring % parhecolar measuemens or dicdocue, “he Wenegi\s perceive be derived fran & wraxt Get fe He cast gerceted © be accatiated = wih Ae QNAVE OF HENCE ALASE FINinleWL BERANE Peorda Cron dal ingamolion Aer Level Swng” Dodes ne Seeking ently, oree nate (S Uiqul We evatires 4 poterlial inweslars, Medes Scanned with CamScannerww -~ wTrwvvev CHAPTER | THE OBSECIVE OF RENE RAL PORPOSE FINANCIAL BEPORTING #1o pride Ararcicl inprmethan Shot sre reperhing enbly thay ir aeful (© Mishey 4 potential tnvectors, Wendees ond other erediter in making decors elahing Prouding mracars the enbhy 7 Primary Usets of Financial Infamahon OAs eaeeto A Ca tunas LOE + LENS. hee arhor decicins imu BPE OO B27 Bouing ,selling cc hdding quhy ard debs nclrumentc 9 PCI £ Providing ox ceting loons ond ther gous: of credit 7 LOG E® Brrcising rights opie om or othruice inewerre ,morogements chong tat onted the Ure oF the amhtys Roromig fcources 7 PCL + Frimany eis ed inpamahan olaat Pre rencmig cecries of the Hy, dono agcinet Hoe enBy ond changes inshore sesaurtes ond coin 77 Yow eyicientty ond gece the mbty mancgement ard gortniy beard rave Accharged tie cecganibihits © bee HE ens eroromic, ecouIees * General paper Gnancidl tents do vet 4 cannot provide inforination chat guna! feoremic conditions ond epectohins , pottical events ard pettical climate ord Industry ond company oullas * Geeta’ expore Enancia’ tepals ore cot Segignn’_te_chay the whe 2 teporting “entity, bud they gaude infomation te help rishing Ord potential invertors; ltnders ont other cradar * ethvinate tne valve og ently + Bowe cers 2 Manegement 7 OVW Parhes such os Cmyalas «| ond the Prmnee of he pubic othe than rovestars, Wenders and thee ceediteas , garrnment ond Ay ogencies roy algo find gent! puxpose Aranca! cegorks uapu\s UCOAOMEES, temper, ounees) INFORMATION NEEDS oF USERS 8 SEP Economie coxaces (A) and claims (t 4) # SERSCE Cranags in economic. muauters ond davms BCE Financial gertormmanre ceflected 4 accrual oanhog, PGCE Firamcial pergumance clades by gact coh claus #orer C1 chonges in econorme cesoures ond doims De weusting Flom finoncal pececamance FINANCIAL STATBMENTS: © Statement a Financial Position J Balance A‘LEE = ceparks chewing Uist a eet ard ViatoiW Hes, 2s Matement 9% Gapeehencive Income Weeme statement report showing cevenues againct epemses 4 cack Financial ongernarye 4. statement ef Cash Flaw Cah report chewing how ond where We at mreney, 4. Sokernent of cunts NEF worth Statement of chorges in equly 5 Other comprthensive income Resaces = Claims a Cloims q ceedlers Liaowries le + Assex = idoims of the ow her Capiral Scanned with CamScannerCAPLER 2: QUALITATIVE CHARACTERISTICS OF USEFUL FINANCIAL INFORMATION fle Whe centieh of cenyypta! Framecerk Guaitabue chaetnishes afe sUadiuded ynte 2 Parts *Y FUNDAMENTAL ~ Basic quati\ahve choragtaietic Mad on wnfermalon chodd posses a) RELEVANCE = ob ogtrcts: your decir, > Cagle ot making a diggecnee in the eciiens make by wees Reevent ingamation con be ceaifed 95 | Predichve udhe - con be ure Waid tue Happenings © Gngamatory Wake Con be ue 1e entire prdichene ond contin Lure hapgened in He pact EB Matenalily > induce and erdution may ORECA the decision making = Beperek, or the wudgeinent immatirial material if 4 ongect i rt ') FANIHFUL REPRESENTATION ~ befere oh ig cated Reliabidty -shodd cenoint Mee ih a Completeness = AY trancachons aie teearded ord dcclsed in te general eugae Geancial cepts @ Nevicolity = Free trom any biases 8 Free FRM erwe ~All ingermnation oFe conrech HE COST CONSTRAINT ON USEFUL FINANGIAL REPORTING # Cost is a Pervacive consttaint (gaaka buna: on H€ ingeemation that can ‘be arovided by Financia’ cegortog COST -BENSFIT - cost shadd be sabsficd by emits or the benifits clenved [rom the infamerken chadd otueign the cost Benigis 7 cost 7) ENWANCING -chorwdmshs (er impmrmmt sf Urando! iofermahar chevtd have VOUT V7 Werigiobitity = Nes ie Financial ctaltmerss aXe veF Talse wily seppecting daumens P diced Umificaion ~ vNiFiginy the amante Phusical axnting. BW lndiceck verigication * (teallahion based on ccords DPEainances Fantnte) cepresentahon FR C7 Comparability ~cheding the diggectnces cand likeness areng gieancial ingarmattion 6 Alntracomparaioilihy - period te geried cempatiton of om FS ®lntercomparability, « company Yo company comearicn OF oun FS to otmer Come: 3 Ory company chadd be Corcistent im ceporbing 10 be compara. R U > UNDERCTANDABILITY - FS challd be Understandable 4 anyone - chad be conceive ard eeu, 1 cemocgrrd T7 TIMELINERS - cepods rods be colbmvtied pemelly Tas oloadt Pre avorlateiihy et the iogermation once yor nen inres relevance B Scanned with CamScannerCHAPTER 3: FINANCIAL cTATEMENTS AND THE REPORING ENTITY FINANCIAL STATEMENTS REPORTING ENTITY + Financial sistemas provide seermatien, A ceportieg ently can enbvhy that ic cequicad , aihouk Koromic ceKCeS oF Hhe mperhing or cheosts , fo Prepare financial _clatimenis eehhy clams Ggamnst the enti and +8 ceporhing enbily can be a single tnhihy or eiranges ie tho cesaces ond cloions partion ef an Mnbily o can cemprige, mere Mat meet tne defimsbons of the elements rae coe enia Cranogement is responsible & Feancial clatem ents in griiding FS as Arey ceprecent the entity) # The object? f Financial claliment i¢ 40 reporting enbhy rol ofceciority > (gal enbhy, proude pinancia! ‘nfermaha oho the > reporting enthje accets, Vabithies equhy, TYPES OF FINANCIAL STATEMENT (PS Retakenchip) nceme ond _apenses that is ucetul bo CONSOLIDATED FINANCIAL STRIEMENTS Uses of financial staltments sn atersing, yeroude ingearmation about assets, Labi lbis, ne proxpecl tor equiby ,tacome and epences ¢ beth the 7 Fut net cach inslows 40 the etporting gotent ard As shacliones as 9 single ent Woerting enti Y's Assessing, management’ clewnelchp 7 eAEong FE na arg info chat parmt 4 Of te enhhjs Ronee «Psourrer Sdosiciory Pin, PH mnort idly P-S Relationship | FS ate PERSPECTIVE ADGPTED In FS pieeented io a conselidaled ‘evel 8 FS provide ingamaton abo Nancacheng ord other eurmts vitwed prem te UNCONSGLIDATED FINANCIAL STATEMENTS Petsprchve CoAne cefecting enbby os TES of She parent jot shout As cebsidiares whale wor fron MWre QeEspOC WE oF 2 Designed 40 provide ingamaton alas she ory park cular qoug g enhtys sishng Porenté —acsete, iabiliies | equby income ard cr potential inurcters, lendis or ther expences ,ard not ahad thie of He creditors Sogdian, GOING CONCERN AssomprioM COMBINED FINANCIAL STATEMENTS *Wgessumed thet the enhhy Gi 2K FS cm fuck’) hich the reporbey ently cantinue in operahin ger the compriter 2 er more enthes that ore Forreaole fhce one hos erther wet all linked by a parent -subsidiony the intinhoo nor the ned © enter velahorship Vgidahen or % cease trading - SE such an intention er need eriele, the Financial ctalémen!s may have bo be prepared en adiggerent basi Scanned with CamScannerCIAPTER 4: ELEMGAIS oF PINANCIAL STATE MENTS ASSET +A preseee Roromie SeiKce contaliel by She enkly as acevo f gach cumndy Ae ecomanme cesoutre iS. a ight thet hos she gotental © podwe toramic renee is in varias forms RIGHT Ce. some are below) © RIGHE WAT CORRESPOND B AN OBLIFANGA! oF ANOTHER PARTY 2 mest othe Fre on auset ic het fuly controlled by an miihy bt arly ger righty ue that asset bu ip 8 Cortespond 4 ar chiigation ¢ oncther arky hat entails eccnomic resource frat is an asset a) Righk 42 seceive coh (receivables), Bb) ighis & receive goss of secuces: 2 ©) Rights ‘vo echonge ecoremic _resarces GAL oncther pathy om favara le (ans) tems (other Financial inghroments Sich Os Bauily Investment, Debt Investment) 3) Rights © beep gem on cbigaton Orcthe parhy ‘ tonster an ttonamic fesoute ig a Specipitd Urrertain futee BRIGHTS THAT Do Not CORRESPOND To AN OBLIGATION OF ANOTHER PARTY Doignt or shysialcbiede such as Peperty, plant and Equipment Inventories Examples of such cighic ore a right se & physical okyecl or crrgnt te Tene rom the rerdual valve 9 4 Leased _chyecd Boeignis ase inte\lechal oroperly Clrtangible assets) PARAGRAPHS INCORPIRATED IN RIGHTS ParaGedeh 4-2 sho enblye tight 40 obtain the Renamnic benepits produced by such goods or cervirrs triste mementorily uobl the ently consumes the goods or Services: (Yer already consumed the asset © ho rere sceremic enegits) PARAGRAPH 4-4 + Nok all of an enbhy's wqnis are asses op on ently oF the ently emt occurs (right of we asset) TE! Asset is rch netesson'y ned by the PACABRLPH 4:10 tnhly it chad only be canfralled by the enh % be consicter of accef hn enh\y cannot have @ right fo eb4gin troromic benepis From itself CBe- instruments 4 Equi hy Seccaites, 1 is issued by the entiy bu can be Tepurbased , like repurchased shares become treasry share: The treacumy share that vas regqviced 1S net past of asset anymere «tis @ deduchion fo equity) Scanned with CamScannervw ~-~--wrvvvvusy CAACTER 4: ELEMENTS OF PINANC/AL STATEMBNTS: [ contiNuatiodl ] PAMGRARA 4-(L #1) princigle toch of an ontily’s rights is a Separate asses” However , fer accounting pages related Hghis an often lteated os © single und aca that is a siege acced GSinvlar wights /ebiigatens cn be Sceoumed for os one beyuse He cmcgpt end of ocant Ord can be treatel a5 single Aqamd In accep 4 o Single Gariity ge Wali Whies) PARAG eden 4.2 cases the seh eights orising rom Wal _cunerchip sicd_cbyict is orcuned for os & Single acset Conceptually, the anemic +10 mony cetacce is the set ot rghis, trot the physical eject CB Inlang ble assets, intellectual Pepertes, copy ight , hademadk Franchise an be aaanfed os Single aeset intangiole aciet in FD PARA APH 4-12 + le some CES , Bis eecertgin abet & night evict Omit that eitemce crerfainly i retolued = for prample , by. court tuling - 1 iS Greertain uhether Fhe anthy Fos a Hight and, Consequently whether an otiet cris ts. CProvision IAS 33) (B. Lawsuit empensation ) POTENTIAL TO PRODUCE ECONOMIC BENEFITS + Ao eerumic Cesare 6 right that has the palenial » youre, scan dre pene te “A Sight cam meet the dkfinibien ¢ on Feerconve cesaure and herve Can be an ofsed ,fm if the inal Wy that) alt produce erenemic enesie i¢ bow + ho eorcmic cece cald piadvee freremic benepits by seating er enabling A ode, yor Brample ne cr mere of the Ff V) Receive contractual cosh glows oF another eonemic reloute 2D Erdnange ecanomic Ceo tint arether por ly on favevtable terms 3) Peaduce cach inglow er ovoid cosh oplew 4) Geceive cach or ether ecoromic tearces by Calling the econanic taourres S)ectinguich Uiobivhes by Harsgervieg the ecersoimic. Keser CONTROL Damather premise oF Loang an aKset is that eniy dnadd conte Mra anced © Accetcing, uhether contol erists helpe * identigy the economic Sauce fer hich the enty aca Bn enbly Gnas on ecoremic reseucce ip > hes tne recent ability to direct the Ke of She economic F506 apd _chtoin the economic benefits that may flee gran it For an entity te conttel on economic saree, She GUE ecenomic benetits prom tot cecacce must flew grem the enbhy eilinge dicect'y or indicactl cathg_than to onother party SV Gertie! f ah eccnomic (esaxce “ually arises abit’ a\_ rights. fom on ty entree | Scanned with CamScanner¢ CHAPTER. 4: ELEMENTS OF FINANCIAL STATRMBNTS [ CONTINUATION ] ¢ ® Hai sgn wantions in the © Wupes of Optiqahons: 4 MS eepacke te SaMpicant_voratiens ers of u emont ot the erononmic benefit praticad by Legal Obligahons - many eblgatins ae v en Ronomic Crane moy indicate thal the estabbliched by contract, lAgitla bion er = ently cents the cesoure Similan mieans ond ace lyally v © grineigal ey angoge on agent tocortange anperceelie by He porly (= parker) a gales op goods centalled by the principal to tuhern they art owed © Ig an agit _has_cudedy — an enenic (e Promissory notes 7 holes payable, v fesorce contol the princigal , thot Bends poysble ,morlgogt payable economic cesoute is net on onset of acoats gaysdle ) ¢ trg_agent &. Inventories © Conctructive abligahons «obligations Cc Consignor (Poncigal) —Consignee (Agent) flor on sts cutenany piactin, Qm Owner Qa os Seller wl ulieheel ices or sprific slattminie ag Mecdnardise, (Product Cornission ig the anhly has ne prockcalahitty h — & oc 6 3 career weit tt Uh those ga LAABALITIES prockices ,galicies of slalements. A peecent cbligation @ the ently b toruger Cr Clean og , warranty -? ret based on resoure as a est of gost eumic low ‘eA on custornary practices) e« + Fer aNiahithy 10 enact, 3 criteria must all be sahspies fim sme seatensjan enhly’s dy or rupn- @) the ently hor a1 celigatin Glnivhy 40 fransper an ecnemic reserre i « BD the chligaken is te honstee an cendificral on @ porticuar pute action Kcoromnic feSGACE That the ently Asele moytube CIAS 20 < ©) the chligation ie © present obligation Acceunting for Govnmment Brant) PPE ©. pep rary fov. fives Land Cécet) — Building = Condition). Until the condhion is e OBLIGATION hot yet gulelled the i should # An dpligalion i addy or (Crensibitny thad an be coaxed as UNGARNEO REVENLE QA enhty hos ne practical ability to avoid las 20 e: 7A veqdcement fer one parky to_tecegnive a lalylity ond menue it ator SPeipiad aman! cher not Bln some cases ik is corettorn wheter an = QUT ingly, thet the other pathy Cer parties) rust cbligaten cists. (VAS 34) Xecogn'se_an _garet or measere it at the some e ene en. e ea Scanned with CamScannerv a CHAPTER 4: ELEMENTS OF FINANCIAL STATEMENTS [ CONTINUATION] TRANSFER OF AN E(oNOMIC RESOURCE a0 caheny this must have the gotental fo regice the enithy ty _RONEREE can economic FOIE te awother carly (or parties] * he cbligahen depeaihion of ox lictathy even if the Pichatsly of a Wronagerg tence vregoumre is ow + Aaligatiens to Vranseer an eccnomic cedimin , the oblgarton con meet can meet the rsa inckde © VY) Obiigation y poy cash YW obliqahan ty deliver goods or provde seruices Cunearned severe) 3) Abligahen ty exchange eenanic tesorces with arother garhy Unfavourable terms 4) Obligation ts Hanssen ecenamie serci pied uncertain feee_cvent occurs S)obligation 4 iccue @ Piecrciol cence ig o fosteument ig that Pinoncial rctum ent ic / will_ebligue the eras (6 fonsere on eenome coccerce CBr Accaunts Ryable thet has icrved pteniscory rete) @ Incteoc! f eeiing an chligaton fronsper an sconemic fescue 4 the pachy that has the Fight to rereive Ghat reser sonhes_comehimer decide ty, for tramp 1) gee cbligahin by neqohahig a release poem _the cbligghtn 2) Wransger the obligaian fo thiedear hy Cin the favre yeur ebligattin onl toe transferred thrie) parky (Banie) 3) RyAe shad cbNigakin by Heanspir om Rencinic Seauce With opwthir ebligahay by entering at» a yew Hranmetion (Debt restruchring , Ceplace with o new Wabiliy ) PRESENT OBLIGATION AS A RESULT OF PACT EVENTS * Aocesen! ebligalion eicls of orteslt of pact funk if VS The annly has difady, enegd. or ale achens DAs consequence the emily ll or may rave te Wansger an eccrcmic (lance thot 1) wed rok stheruiise have hed Honpe © the enachwent ef legislaben ix_hot Aselp_seeveibns fo give an entity a present oblgatin * > cresent obligation can ist wen if o Mamicer %F ecoremic ceiectrs cannot be engerre! or! seme _geict in the felve id ecenomc UNIT OF ACCOUNT # the unt of acount 1s the right er the qe f rights, Hhe_obligation or the grap of ohlgahiene er the grove a rights ard ligation 70 Cahich cage ten criterion measremint cencepts Te applied 2A ont of accant is selected to provide Useful ingamatien fuchi) which imp bes that "the ingermaiticn previded_abot Phy acset er abiity and abo any related income and eepenses Mash be relevant 2) the ingermation providéd abet the asset or Nidbwhy ard aboot any related inceme ore! penser must featheuly “pierced the subclone of the tranruchan er other event gran which they hove arisny « Weating a set cp eights: ond cbligatin + 9 stngle Unit ef account_dgters gfom segcettirg acsets cond Vabalihes. CIAS 4, offsethiagis ret altourh) Scanned with CamScannerCMAPTER 4: ELEMENTS OF FINANCIAL STATEMENTS [continuation] UNIT OF ACCOUNT £ CONTINUATION T fe Possible emily of occctry inclide * @) on idval right or inctvickal obliga hen b)_atyrights a obligahon, or alt nights and obigatinr, arising ftom @ Single sarce, fer ecomple “A fentract OA shgwap + obligahons /or rights a) a 9@— Ff aghts and for Shares of various Nypes icsued lay the entity: 7 some sbligations — whe ently tw eve amather equly claim * Digement classes oF equity cloims , such as erdinary shares and preperence chares, ray conger Chrant) on ther holder's diggotend vightc, (Ex rights (receive seme oF the Ff. Flom tre entity @) Pividends - it ane mntiby decides fo pay dividends tb elignle heldes- &) Proceeds FEM chakiseying equity dams either iin ful on quaint in part at other Hones ©) Other Equity, downs or all = © ce © © Scanned with CamScannerCIAOTER 4° ELEMENTS OF EiNuACIAL STATEMENTS. [ContINUATION] Income & EXPENSES \NCOME 7 Revenue + Sains * Revenve are income prom oni nary, cance of busines 4 from primacy ope catiens &. Sales * Gains are income not arising ier exdinany ance of losiness > From incidental cr otner Mransochiong & Uhe busines be fovestment gains , rent ingame 2 \ncame is (nereasesin Asset ot Deceases in Viabilities | that cecclt te ineetases in equiy aher thon those loting t cntvibufons pam Waders of equby claims ‘Yoccease in Acset (Soles) Cast, wy Revenve/saes =X 2) Decerase, in Giadoithy CRrepagmente) Dr-Unearnad revenve —*** Dee Revenue /income > Conee fulflted) 3) cealibbctons of the helders Clrvest ment) aalincame is the imply of ceeurces “anang From epetakenc en nt that may increase aseet ond decteate Wabi her EXPENSES > outtlow oo asses t Laces 7 ort decreases In _asitly or (elecreuse) Increases in Liabilities , that cad in decteaces in equity other Moan thase celoing © conteiontions Yo Wages & equity Sots #) Decrease in Asset CPregord Eiptnse? Seeense wae Arpad Bpense san Besed is vied ) qiincstas in Voloity Cused service bX oot ead) Slants perce ‘te Solaris eoysigle kine 3) Decctose in equ “CDecceases celauntd camming 4) diswiorkiens to Wakes Cowidends acd withdrawal ) Scanned with CamScannerCOPTER 5 RECOBNITION AND ObREcobNITION when 1 amend ond chen 10 imine in te ceed RECOGNITION # Recording , inclusion a element 1155 Yue eraces oF Capheing for indbosion te tre SEP ox SCI an dtm that meets the. ekginibion of one OE the elomenth of Fironcia! (sition) ctalements 9 Asset, Liabilities , equity iacome or expenses © Nw eerded it 8) Probabate shat thie Gal be on inglow cond abtlan | ceases 1b) Meagualele “amunt cauld be measured! cctably 4 ieudes depicting toms in ene ge those Statements 9 either alone er in aggregaticn Wuty alte berms —alinckaled in ene teem) Fr Gh and cach equvultints 1 wads ord by Menthay amant ard indudiay that arent in che oF mee ‘alc in thot ctatement Recognition Links the ehments ¢ the SFP ore Sel RECOGNITION CRITERIA © Only ttems that meets the defin ben % on gcset ja labity or equity are steogrine in SEP © Only items that erteic the ceginibien © Socome Aperge ate tecoynized lovhe SCL Cinancig! performance) Who acset or Vabslity is cecogniard only if iF eee income perpensts ce shores in eauly provids ues uith ‘ingermotion Habis wregul (telat § Faithgully_ceyrecented) UNCERTAINTY EXISTENCE UNCERTAINTY ~ IFiS Uncertain’ Ghether on auseh oc Voki hy, Oni + MEASUREMENT UNCERTANTY, = OCs x lay ras! be measued Ww be rrognized Ww many coses cred PPE Scanned with CamScannerCHAPTER © MEASUREMENT # Recagration is auhag the amanr or muatding Woe amaint on the fore Bnanciq! ctalemnens STMEASUREMENT 15 the proms 9 quankiying, 1 monetary tts an clement cecagniaad im the Financial statement (Putting Peso vale) Measurement Basis is an idmbpied frare Ee Mistercal cart, fait valve /Fupilmnent value og am item leeing Meaciced +A Stondard may peas to derive how to icnglement the meaccement Baris selected in that standard: the desctighion cad indode. 4) Speapuing (ehnigues that way or mos! be used treckimate a meas applying @ parkcdar measwoment batis ©) Seecitying cimptigied measutrnent dpproch Shatis “key 1 ptovide inpamakan colar te tral ptSvided by ce prefered emeasveanent basis © Explaining how te modigy a measere ment bacis. be by eecleding Gtomthe Fupilment hat the ently cnay gail So pup) that Nobeviy (own gedit cide) MEASUREMENT @ASEs © 2010 = Conceptual pramewock Ynete 4 measurement Bates ') Wideical cost 2) Fair value | Carert value 3) Reaizdole valve Receivables 4) Precent valve © 2018 - Revised Cenceptual Frameverk icenly cessed of 2 meaitement Bases 1) Wistovical cost 2) Current Valve, ace. ~~ rT rr vr we wUVvuuvuuvuegeuUuuUEEY CSpeci pied the initial and sdosequent Ute) Valve ear Vatilhy whe eet of the easily HISTORICAL cast Clic) + Ristelcal con is the Entry erie or Entry Valve % acquire an atiet ox te incr Kai hy AC ef the Original acquigitien cost ain acset Te the cast incurred in acquiring, creating senrideratin paid + transection cost e he go Liabibhy 1s the wndderatio Ceceived te incest thy abildy muws ©) mransechen_cost the asst compricing he whe application = WC meascrrment is te meante Financia) auset ord Fiharcial Gabides ab arpertized cost | RMORTIZED COST ceplets the ectimate sf gure Cath flour decanted ota tole determined aticital tteogniton Be measures pwvide menetary ingamatir abak acces, Vabities ard eehehed income ond epenge , ving the infarmatin decived ,at Keast io pork, giem she peice | the Mransachon or ther eumt thet gue rise them, We = _ORIAINAL TRANACKON Cost / PRICE Re dors cet ceflect changes in aves, except 4 the ectent that tose changes celate 40 Imparment ofan ascet er Vabinhy. Be in Wah cats payayle 4 nates Payable at rrcerded at WC \mpaicmnent = decttasein ang valve of a0 asceh & O Nabilhy fy. Depresiahon Cte 5 tung, moghore ying, anayaran rae gore Maacaitt ang asset ) CMERANON oid “Mura, ageano Yong Wrayee Fin od 4 Me Gao fngosced at omettt0d coc? Scanned with CamScannerCohapreg ¢ Meagumement [com riMuAton J © He eg 2n asset hen AS eae oF eat 5 the value of the casts incosted in acquicing ot cttating the axe, ceengni sing tHE cxrCichraten_poid lo oxquice ex cc60N@ tne amet pos) ‘rontocton cast Consderaten paid - Ghtn acquiring an ocset there tall be cther Han sochion cog that Yo lull incur are Cull Lust he added of pork oF Hiskeical est of an onset Bes IAS 2 Inumiodes ~ recAl at purchased price Cacqeieition. cost) 4 clictetly attritevloble cost (dreact cast) st han sacten cosh rudh 05 freight tare} ard dbs BHC Fa labily ahen vis nace token ce Ig the Uake of the Sensidtratin seceived tv incur or take on the _libitty rinus-) Rensoction cat fx. Berds Royale - when thee is Band issue cat “CS incurted on the issuance op a bend Bards ie g Sutil t indebhedoess — - # celica op indeblalness: vs -premicery ete > Promiceary cole - anyence con create BS O hegotiakle inshummnt PA nececanly egaty regis red anty MEO the Gigs Sign cf fhe maver then i is alteady an ioshumend 7 Bras * needs to be registered b> SEC thus could dle incur bend icsve cost that can decrear the cagrying /idlerical value the habinly, © ome cay Yo appy HE mmanutment boris W Firancal asset and Financial “abil ies {5 Ne measue Hem at amerkzed cast amazed cost 16 acexteled cath et realizable yale at they at® Samethat simlor f amertized cosh is moa Illy we be encantered in Heancial acsete Irauever cosh i rot included in amor Weed cos, 8 dats ule ceccivalotet A. Reenabig legs allevonre fer ( aki ancerts in pela. ceceionla 1 Ua have ame haaher fable 2'n Wabi Hes robes paysite Ul have omertizad cegh or Fell go & the gesrest cf amarhzahen berewhized cash is also part of Nistorical cast 8 MS & omoget is pated ove Hime © depict if applicable: Dhe ceosumplion a gard a ah g the Kccmomit W52ate that canshlote the acer (depreciation op omer hzation) Cihe value det pot change by the amant 1S being updated spay cenauanp tion “Ee supplies ) 2) Beye teaivd thet bing Pat ec al of the atset C Received payment prem custemer / debtor) D) The epee sf eumts that cous part sal op tne wisteical cad gq the Ager fo be ve longer crcovetatiy Cinpoitmment) =7 VAS 36 Scanned with CamScannereuvuvevvvvuyrvvvwvvuvuyvvvvrvrerwvy Chaprer 6 MEASDREMENT [ CONTINLANGA J 4) Aeceyal ct interest Ww reflect ary Financing Cemgonent &F She atset Coraggaviong rgpalagn , wil have notes cereivables whenever there an interest te be received Shen und be updahig the value as Shere wll be additional asset wetes veceiaje t interest receivable BRC go Liabithy is epdaled arte depict | 1p applicaole : 1) Rayramt made mart detailed PV isa, gee tran (teoted— wp sellan asset _ Paid te transfer o Nability 5) Otheectothiey Estat, terra in an erderly transection acceunt in ae eirctmstantes Bee soap beni tee cek tiv ether Cages 4 i deteumsined indirectly ceing meocurement Fechniates 5 Ber coeh -plau based messurement Srinniqus st the pfecene volte et coch thaws thar eeglect: ott the pp: fects’ 1) Estimates ¢ te thr glaus os 2) poselble _soniahans inthe estimated amants er Pining flee cash plac rhe csset SWAN brihg messi, coued by the Sncertoinby inherent in the Sa tau, OUTCOME UNCERTAINTY the tncectel in teng of the eheome, aneint, cr Fiming Ea parbicolar cath flew Hat nerds “he, toe consisted op comprbrey Inviirectly + Gn indireeh immeasutment Uncen pair Lolve: 23) Jime _valugige money fests oe rete peso. tomerran) ‘hegre tera teak thn in the codtigldusi CO, eck petonisaton wick discon) 7 Diccustectiin’ Finaneial meyenent soy) par Huipan ls) Ga! tobe Hee fortes inte Scanned with CamScanner~-~wrvwvvvwuww CHAPTER G* MEASUREMENT L CONTINUATION T +BY docs nok pep lict TC that vows Beirut on the vihmate diseasal OF an auset or em trans Hiring the Wally Ey in Biclogical Acer the FY Ce Se cost We sett /Mipasad cost setting is net emit in berms op Hit cencepha! fromeumt as CIC iS pet decickad o FV then ate Geb Yet my anbin + censicteedl cart bo cell /Sisparal SY obes ret ented) any FY VALVE IN Use ASSET) 4 FULFILMENT VALUE CLIABILITY> WNALUE IN OSE is the peeevi valve the coth play or the ceramic bees, that_an ently eprets by denie fom the ee 2 accet and Ns olhmeate stieposal Cin cempring VIV st PPE go att be considering Gea much the omant that isthe amant that ya ove. eepecting in the puhce for PPE Using seme cert inteast cate) AMD VU ss applicable in occet imgerlant teings ig VIV IS cava phus, Mine ard intestst sete FULFILMENT VALUE is she present value of Wht cash orotner Kenemic resources, that an enbly eapect fe be ouged & transper as ib gps © alaiy * Value Hat on enbly tepect fo frarsper 19 paying oF cetiling a Ncbiny VALUE IN Uce 4 FULFILMENT VALE om fae cath plas , are bated hence dey co ned include Wrangachen mst ineured oy SCgirigg on cect or faving ono Falanly Gave whe fair ude VIVE FRY clone constr fronsachin cast) SB VIU 4 FEY include the present valve “f chy Wransocken on enbly apects ty_incur en the ulhmare dispocal «the asset of on fulfilling the labinhy FINIU dots ret inckde Henmctien cot on caving anescet bu incheles onthe dicesial oF Me Wansction coet ose DFRV dows rotinclude hansocten cost on incurting 9 Nabily bet includes transaction cost on Ful illmant of a hability © Beng oro tercetrg, Oraeri), 7 Umate dispocal & Fvitillmeny (Rute) BMIU SFFY coplect entity -specigic acamptions Sater than _ascumphets Me Coie Value considers marker parhisipants Ube rheipont YIUFPFY dors net concider market parbelfonis ut ontihy: specific eecumphons) Cteg gee lang yung nacchnale ng enbly ne expected cach flaus that ull be include) in the cempkatins they yh lang yong Maisasong cain 4 FeV Bsus MWe foie value VIYSEFY ic on end pri cr ed vale Scanned with CamScannerCuspree GMEASUEEMIENT LCONKMUANON CURRENT Cost © Similar to Wieloricd cast , cortint cag! A CURRENT COST EF AN ASSET “+ Whe wet eon is also based om Ent enhy pre Runalent sah st the measuiment de smiey value but ceplecke monet mmorny he cmeileraton paid plur(+) eions cn mtoastenent doll rancochen aust inetd at that dale Summaey RC recorded OF the omant an Chih @ particle Equisalint asst! te: yay boogiht machine ccet| Liab thy Atites oe the oviginal ond has a Usha, one twit 6 3 facivalint tromtacMien ony faiginal pede st Wan sock machine Huh ys the came ancl same ctte cack ter ante, = wancachion cost fer hoc + price tata that rite all be the Nobittny CU has the updated ingermation cliche contideg V9 EV, 2) €VIU Gr tse B)ERY fr Viabitly 4) = the amant © pect tr dispeting | selling certent cost a The Signe betuam Comtst Cort ove) the FV, YIU FFE sc thabit considers cequiriny ard snevering date for asett 4 Labi hy 5) an atset 8 dees nek concider Ve cast ¢ on equicclint acsel ic cred brcaue wramtacken ott in ame coset Vis rere rctiable Shan NIV AREY ~ include He ortimt Udon 4 Wee cash ews be dott net concider ransochan Cost at the intial secognihign, the Wine ye? ME loeqire. an CURRENT COST OF A LIABILITY ie the Sesek Hiabiny Su considers ansachon BG ah witimate disporal /tatsionene Whe valve 4g he careent asset, censideeshion Heat could be received : : a ; 3 cag the sadivalens acces consides fer an equvalnt Wabity at o BZ ramcacKan cS Om ti time © iS incutree Gm reamsackion cost if Voby\ity, MEASUREMENT OF EDOITY Whe had cainaing ometne Equny mecsurmmint date minus (-) Ye transaction cust that euald be Treured of that cate Equvaltnt Waloiihy Ge oangeang ke Ctotel Equlg) is net measoredt direcHy » ngpyen ng Pana iy San rary cory (reads the Wal of the camniiy omantc Ke carts Pyiny vedue nya colby bil aN recognized aacsets less (-) the total be the cst of Equislent Nieto thy of the caurging amants ef all cecagnized D the cash op et Wabsiy is the came Viahivnes CTE = TA ~ Tel) oh the pulgiliment calve in caches toy that Lon dent concider SELECTING A MEASWEMENT BASES transachion Cosh Pas ik is deducted * Necescans 1 Consider tht Hahee of infermatin 4 Whe (ASG did nen mandate 0 €ing¥ tmear extent Rana Gest is on thing value oasis because the difpettnt mescumment bares able FY, vIU } Fry ore tei} values Cad produce ef infermahicn Urdér ditgcctat Enmny valve = sxe Ue ecattie Miner Cieccomstanns «\n many Caies ho ingle facter Bek value — Value ene sd the ol deteqming Which entasuemmt bosis % be ued acet [Fupiled o Vob\\y ae Mock commenty ue is HE simpler, lea catty Presmnt abe q ROAR cash clans gmnaty Uti) Urdee rend 4 Verb, Scanned with CamScanner