Information must be capable of making a difference in users' decisions by helping them assess 🏴the future impacts of past and present events.

information must be capable of comparison with other financial information, either within the same entity or across different entities or periods.

Information must be clear, concise, and expressed in a manner that is understandable to users who have a reasonable knowledge of business and economic activities.

Financial reporting must also consider the needs of users who have different levels of expertise and decision-making authority and ensure that information is presented in a balanced and complete manner.

Financial reporting must also comply with relevant laws, regulations, and accounting standards, and be subject to appropriate oversight and enforcement mechanisms.

Capable of making a difference in the decisions of users

Must have Predictive Value, Confirmatory Value, or Both.

means that information is comparable across different entities, periods, or industries, allowing users to make meaningful comparisons.

means that different knowledgeable and independent observers can reach a consensus that the information faithfully represents the economic phenomena it purports to represent.

means that information is available to users in a timely manner, allowing them to make decisions before the opportunity to act on the information passes.

means that information is presented in a clear, concise, and comprehensible manner, so that users can understand its significance.

Are economic resources that are controlled by an entity as a result of past events, and from which future economic benefits are expected to flow to the entity

A present obligation of the entity to transfer an economic resource as a result of past events.

Represents the residual interest in the assets of an entity after deducting liabilities. It represents the claims of the owners of the entity.

Refers to increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities, that result in increases in equity

Represent decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity

This means that the owner can decide how the asset is used, when it is used, and who can use it.

The asset should be expected to provide future economic benefits to the owner.

The asset should have arisen from a past transaction or event that has already occurred

The owner of the asset should have the ability to control the access, use, and disposition of the asset.

This means that the asset can generate cash flows or other economic benefits, either by producing goods or services or by increasing in value over time

This means that the company has a legal or constructive duty to settle the obligation at the present time, or in the future.

This means that the company will have to use some of its assets, such as cash or other resources, to settle the obligation.

This means that something has happened in the past that has created a binding obligation for the company to pay or perform a certain action in the future.

It involves the application of accounting principles and standards to determine when and how to record a transaction or event in the financial statements.

Recognition refers to the process of identifying and recording a financial transaction or event in an organization's financial statements.

it becomes part of an organization's financial statements and is used to evaluate its financial performance and position.

This can occur when an asset is sold or disposed of, when a liability is settled, or when a financial instrument expires or is cancelled.

Derecognition refers to the process of removing a previously recognized asset, liability, or other financial instrument from an organization's financial statements.

Derecognition is important because it ensures that an organization's financial statements accurately reflect its current financial position and performance by removing assets and liabilities that are no longer relevant or reliable.

the realization of all or substantially all of the asset's or liability's carrying amount.

Fair value is a market-based measurement, involves recording assets at their current market value, which may be higher or lower than their historical cost

This method is entity-specific, involves estimating the future cash flows an asset will generate, discounting them to their present value, and recording the asset at that value.

Method is useful for companies that have assets with a short useful life, This basis involves recording assets at the cost that would be incurred to replace them at current market prices

Involves recording liabilities at their current market value, reflects the amount that would be paid to settle the liability in an orderly transaction between market participants.

method is entity-specific, involves estimating the amount that would be required to settle the liability based on the current expectations of the company regarding future cash flows

Method is useful for companies that have liabilities with a short remaining life, Similar to current cost for assets, this basis involves recording liabilities at the cost that would be incurred to replace them at current market prices

Selecting a measurement should be solely to satisfy this

Sensitivity of the value to market factors or other risks

Whether cash flows are produced directly or indirectly in combination with other economic resources

Measurement inconsistency can lead to financial statements that do not accurately represent the entity's financial position and performance

If uncertainty is too high, consider choosing a different measurement basis

Statement of profit or loss is the primary source of information about an entity's financial performance

OCI includes items that have not yet been realized, such as changes in the value of available-for-sale securities

OCI items can be reclassified to profit or loss at a later time.

It is a separate category of income and expenses that are not included in the statement of profit or loss