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REPORTING FRAMEWORK AND ETHICS, CONCEPTUAL FRAMEWORK (CP FW), IAS 1 -…

- - - - buy, hold, sell investment
      - assess accountabilit of mng
      - assess liquidity and solvency
  - - - FINANCIAL STATEMENT
        
        summary of performance
        
        over particular period
        
        posisition at the end of period
- - - - eco resources of entity
      - claims against
      - changes in eco resources and claims
  - - - relevance
      - faithful representation
    - - comparability
      - varifiability
      - timeliness
      - understandability
  - - - provide infromation about A, LB, Eq, Income, Exp of entity
    - - provide comparative period
    - - going concern
  - - - a right
      - has potential to produce eco benefit
    - - present ER
      - controlled by entity
      - result of past event
    - - present obligation
      - to tranfer ER
      - result of past event
    - - residual interest
    - - other than contribution from Eq participant
      - +++ A or --- LB = +++ Eq
    - - --- A or +++ LB = --- Eq
      - other than distributon from Eq participant
  - - - :check: meet definition
      - :check: relevant and provide users with faithful representation
  - - - current value
        
        fair value (FV)
        
        open market value
        
        if not available
        
        est of future CF, discounted
        
        value in use (VIU)
        
        A > FV (revenue generation/cost saving
        
        Lb > PV of est CF
        
        current cost (CC) or replacement cost
        
        A > consideration paid + trx cost
        
        Lb > consideration received - trx cost
      - historical cost
        
        Lb > consideration received - trx cost
        
        A > consideration paid + trx cost
  - - - in monetary
        
        historical cost
        
        constant purchasing power
        
        taking into account the inflation
        
        using price index
    - - OPR capability
- - - - straightforward
      - honest
    - - do not allowed bias, conflict of interest, influence of others override judgement
    - - maintain professional knowledge n skills
      - act diligently (technical n professional standards)
      - act with sufficient expertise
    - - respect confidentality
      - disclose only with proper authority
      - not using information for personal gain
    - - comply with law and reg
      - avoid conflict of interest
  - - - entry requirements
      - CPD
      - professional standards
    - - ethics programmes
      - internal controls
      - leadership
- - - - liquidity solvency
    - - liquidity solvency
    - - return produced
- - - - predictive n confirmatory value
      - :!?: making a difference in the decisions made by users
      - affected by its nature n its materiality
        
        if omitted, misstated, obscured >>> the decision might be influenced
    - - faithfully the substance of phenomena that it purports to represent
        
        substance over form
        
        TRX n events accounted for n presented in accordance w/ their substance n eco reality
        
        :red_flag: not necessarily be their legal form
      - condition
        
        :check: complete
        
        include all necessary info (desc n expl)
        
        :check: neutral
        
        :no_entry: bias :no_entry: manipulation
        
        :warning: exercise of prudence
        
        exercise of caution, when making judgement, under uncertainty
        
        :check: free from error
        
        :no_entry: error :no_entry: omission of phenomena
        
        :no_entry: error made in the making of FS
  - - - to compare FS among industries and for another date
      - consistency - same method for same items
      - should provide info from receding period
    - - assure user faithfully represent the eco phenomena that it purports to represent
      - verified by diff methods >>> reach consensus that FS are faithfully represented
    - - info available in time >> capable of influencing decision
    - - presenting info clearly n concisely
- - - - right to receive $/service
      - generate benefit - cost saving
      - meet LB
  - - - physical or non physical form
      - not legally owned
  - - - a duty or respnsblt
      - has no ability to avoid
      - legally enforceable
      - resultof business practice
    - - giving up ER to satisfy claim
  - - - creditor have claim against ER, owners DO NOT
  - - - revenue
        
        arises in the course of ordinary actvt of entity
      - gain
        
        disposal NCA, reval NCA (Eq)
  - - - expense
      - loss
        
        PPE disposal, impairment, NCA
- - - - :check: provide users with useful infos
        
        relevant + faithful representation
      - :check: meet definition
    - - process of capturing for inclusion in FS, an item that meets the definition one of element of FS
      - the point at which an element should be included in FS
    - - cost must be justified by benefit of recog
  - - - removal A/LB from FS
    - - do not meet criteria/def of element
        
        losing control of A
        
        obligation is satisfied
- - - - fair value (FV)
        
        open market value
        
        if not available
        
        est of future CF, discounted CF
      - value in use (VIU)
        
        A > FV of CF + disposal (revenue generation/cost saving)
        
        Lb > PV of est CF (fulfilment value)
      - current cost (CC) / replacement c / entry cost
        
        A > consideration paid + trx cost at MSM DATE
        
        Lb > consideration received - trx cost at MSM DATE
      - updated to reflect conditions at measurement date
    - - amount to be measured
        
        A > consideration paid + trx cost
        
        Lb > consideration received - trx cost
      - (+)
        
        diff to manipulate, can be verified, reliable
        
        SoFP n CF consistent
        
        easy to understand
      - (-)
        
        out of date (overstatement of profit)
        
        A out of date
        
        not representative of due to inflation
- - - - :silhouettes: relevant info regarding entity n industry
      - :checkered_flag: boilerplate = standard desc are provided
- - - - historical cost
      - constant purchasing power
        
        taking into account the inflation
        
        using price index
- - - - need to pay creds
    - - cease trading n had to dispose A LB
      - all NC = Current
      - recoverable amount on sale (usually <CA)
  - - - :check: control of asset has passes
      - :check: expensed when consumed
      - :check: comsumption of NCA over the period which are used
  - - - continue in OPR for foreseeable future
      - has no intention or need to liquidate the entity
- - - - public
        
        contribution to local eco (supplier, employment)
      - customer
        
        product warranty, dependency with product
      - employee
        
        stability, profitability, ability to provide benefit n remun
      - govt n their agencies
        
        data for national statistic
        
        taxation
        
        access activities
    - - other cred
        
        likelihood of being paid when due
      - investor and potential investor
        
        mng steward and effect on CF
        
        ability to pay dvd
        
        risk n return
        
        buy hold sell inv
      - lender
        
        how mng use the debt, security of debt, liquidity, solvency
- - - - view given is objective n unbiased
    - - objective concept reflecting factual accuracy within the bounds of materiality
- - - - in format n presentation
        
        limit usefulness
    - - TRX combined into few account
        
        diffc for reader to evaluate business component
  - - - narrative desc of major OPR
      - business risk n opportunities
      - narrative analysis of perfm n prospect
      - MNG policies n how the business is governed n controlled
      - bc do not meet the definition in std + FW
  - - - ORG strategy, governance, perfo
        
        in soc, envi, eco context
      - objective
        
        help take more suitable dec
        
        help SHolder to understand how ORG performing
      - IIRC
        
        international IR council
        
        IR FW in 2013 Dec
        
        coporate reporting
        
        must evolve to commn the factor that affect ORG ability to create value over time
      - info
        
        included in strategic report
        
        gender representation
        
        greenhouse gas emission
        
        human rights approach
        
        with details on
        
        strategy
        
        business model
        
        principal risk n chall
    - - internal info for MNG (plan, budget, div analysis)
      - loan term agreement for bank
      - additional access req by investor
      - entity brochure
      - brokers report
      - press report, media coverage
- - - - straightforward, honest
      - fair dealing, truthfulness
    - - associated with misleading infos
      - materially false/misleading
      - infos furnished
      - omit/obscure infos
  - - - bias
      - conflict of interest
        
        fin, profss, personal gain
      - undue influence of others
        
        dominant client, superior mng
  - - - act diligently (technical n professional standards)
      - act with sufficient expertise
      - maintain professional knowledge n skills
        
        ensure client receives competent profss service
        
        based on current tech n proff std + relevant legislation
        
        at required lv
    - - initial profs dvlpmnt
        
        attainment of profss competence
      - cont. profss dvlpmnt (CPD)
        
        required by the CA
        
        maintenance of profs comp
        
        u-stand new std
    - - monitor requirement
      - learning new skill
      - monitor progress in work assignment
      - have sufficient time and resource to work
  - - - disclose
        
        only with proper authority (duty/right)
        
        in the public interest, permitted by law
      - respect confidentality
    - - use information for personal gain
    - - quality review by profs body
      - investigation by prof body
      - legal proceeding against accountant
      - comply with technical n professional std
      - disclosure required by law
        
        money laundering
        
        fraud
  - - - comply with law and reg
    - - avoid conflict of interest
      - any conduct that discredit profession
      - occupation/act that impair/might impair the profession
      - professionally n personally
      - bring the profession into disrepute
- - - - obj
        
        report the offer, disclosure fee
        
        refer to guideline regarding gift
        
        offers will create personal bias
      - PCDC
        
        training
        
        not qualified to do so
        
        time constaint
      - prof bhviour
        
        conceal any wrongdoing
        
        report offer, disclose fee
        
        ask opinion from senior member
        
        refer to guideline regarding gift
  - - - of previous judgement made
      - of service perfomed
      - bc of judgement made in performing act
      - by him/herself or other prof accountant
    - - difficult to maintain sth you yourself prepared
      - :silhouette: produce FS = :silhouette: audit FS
      - separate team/file/access to info
      - senior/secondary partner review
    - - inadvertently breach
      - :silhouette: produce FS = :silhouette: audit FS
      - (same)
  - - - conflict of interest
        
        legal defence of long standing
        
        highly profitable client
      - losing it affect finance of firm
    - - material promoting client reviewed by another partner
      - take assurance work
      - flotation
        
        separate team
        
        work independently
  - - - potential conflict of interest
        
        fee significant
        
        long standing cust
      - undue influence
        
        demanding/significant cust
    - - overfamiliar with cust
      - false sense of security
      - not act with sifficient diligence
    - - misleading infos
        
        ignored
        
        become immaterial
        
        not dealt correctly
    - - partner rotation
      - review partner on assurance engagement
      - report any fam, personal, fin link
      - make each party aware of situation
      - second review on condition
        
        favorable term not awarded by team member
      - segregation of duties
  - - - conflict of interest
        
        lose job
        
        not promoted
      - make FS more profitable
    - - breach on regulatory / legal reg
    - - misleading infos
        
        improperly prepared
        
        not follow acc std
    - - increase client base
        
        not relying on 1 signf client
      - report intimidation
      - prepare to resign
      - secondary review
- - - - 5 fundamental principles
      - recognise n assess potential threats
      - safeguard
        
        eliminate
        
        reduce to acceptable lv
      - principles-based
      - apply to
        
        member
        
        student
        
        affiliate
        
        employee of member firm
        
        member firm
    - - highest std of profess conduct
      - take into account the public interest
      - ensuring public trust in fin reporting n business
      - reputation of acc profess
    - - Internl Ethics Standard Board for Accountant (IESBA)
        
        1
        
        fundamental principles n conceptual FW
        
        2
        
        profess accountants in business
        
        3
        
        profess accountants in public practice
        
        4a 4b 5
    - - ethiics advisory helpline
      - support member scheme
        
        volunteer from vary background
      - money laundering helpline
- - - - eliminate
      - reduce to acceptable lv
  - - - mencocokkan apakah conclusion dari judgement = 3rd party
- - - - money from illegal sources
      - made appear legal
      - conceal the proceed of criminal act
    - - believe / has reasonable ground for being suspicious
      - report to National Crime Agency
      - does not breac any duty of confidentiality
  - - - breaches
      - suspected breaches
    - - offer to induce improper performance
      - accept to perform improperly
      - offer to a foreign public official to retain gain in business
- - - - 100
        
        app of fin reporting req
      - 101
        
        reduced discl FW
      - 102
        
        fin reporting std applicable in the UK n ireland
      - 103
        
        insurance contract
      - 104
        
        interim fin reporting
      - 105
        
        fin reportingstd applicable to micro entities regime
    - - replaced all UK FRS
      - based on IFRS for SMEs but with additional options
      - for all other than eligible for FRS 101
    - - disclosure exemption for entity applying EU adopted IFRS
      - must comply with CA 2006
      - P n S can report using IFRS w/out IFRS long list disclosure requirement
    - - select appropriate acc FW
    - - enable user to receive HQ + understandable fin reporting
      - proportionate to entity's complexity
      - and users' info needs
- - - - MNG want all entities to produce FS using the same basis
      - investor n lender do not want to have trouble understanding diff bases in FS
    - - communication advantage
- - - - UK regulator of fin services
      - supervise info on public offering of securities
    - - bank, building societies, insurance comp
      - overseen by Bank of England
      - monitor fin firms to have sufficient cap + risk control in place
    - - maintained by Conduct Committee
      - report to FRC Board
      - enquire FS and director's report which dont comply w/ the requirement in UK
      - ask for voluntary agreement to restate FS
      - restate FS tru a court order
- - - - IFRS takes precedence
      - standard will prevail
- - - - the Companies Act 2006
      - acc standards
        
        IFRS
        
        UK FRS
        
        100 application of Fin Reporting Requirements
        
        101 reduced disclosure FW
        
        102 the fin reporting std applicable in the UK n rep of Ireland
        
        103 insurance contracts
        
        104 interim fin reporting
        
        105 the fin reporting std applicable to the micro-entities regime