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Financial Accounting - Coggle Diagram
Financial Accounting
Chapter 2
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2.2
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Three tiers to IFRS
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Third tier is the indepdent accounting standard setters the IASB and the IFRS interpretations committee
Accountable to the IFRS foundation trustees IFRS afvisory council provides advice to the advice to the IFRS and the IASB
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2.31
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Mission of the IASB foundation + board is to develop IFRS standards that bring transperency accountablity and efficency to financial markets
The board is indepedent, it is overseen by diverse body trustees and is accountable to monitoring board
Supported by an external IFRS advisory council and an IFRS interpretations committee to offer guidance on where divergence in practice occurs
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The board engages with investords regulators business leaders and global accountacy profession at every stage of the process
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2.4
SME implemtation group (SMEIG) established on Jan 20201, supporting international adopteion of IFRS for SMEs
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2.5
IFRS fouindation trustees- formed march 2012, the aim of trustees is to promote of the board and rigrous application IFRS
Monitroing board appoints the trustees, responsible for governance all bodies involved in developmnent of accounting standard
Resposbibklities
Appointing members of the board, the IFRS intepretations committe and IFRS advisory council
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2.6
Monitoring board
Established 2009, serves formal link and a forum for interaction between representatives of the main capital authrotieies worldwide
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2.8
IFRS advisory formal advisory body to the board and foundation, ivestors, financial analysts and iother users of statements
Objective
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3, Project issues related to application and implementation of IFRS standards and
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2.10
Standard setting process
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2nd Stage
Researching the project
May set up working group ti look at research, consideringn accounting ntreatment issues and provides range of possible solutions
Standar setting porcess starts with publication oif discussion paper which distributed for public concultation
3rd stage
Standard setting phase
Exposure fdraft is dragted takingh into account the feedback from the discussion paper, then reissued to interested parties and general pbulic for comment
Board reviews commments recieve and made decide to publish again, when all issues are solved it's published and adopted
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2.11
UK accoutning regulation
UK and the ROI has its own regulatory frameowrk and standards that are strill used by small, mediuma and some large entitites
UK body repsonible for UK account the financial reporting council wanted to converge UK accounting standards, however Uk frameeowrk popular and businesses given chocie
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Two previous accountign standard Organisations: Accounting stnadards committee, and the accounting standards board
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Figure 2.8
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FRS 103
Insurance Contracts
Provides guidance on how to account for insurance contracts issued and reinsurance contacts that the entity holds
FRS 104
The financial reporting
The standard can be applied by entities who qualifys as micro-entities. The Standard reflects the simplier nature and smaller of these organise
FRS 105
The standard can be applied by entities who qualify as micro-entities. The stnadard reflects the simpler nature and smaller size of these oragjisation
The standard can be applied by entities who qualify as micro-entities. The stnadard reflects the simpler nature and smaller size of these oragjisation
These are entities under UK GAAP, are entities that are included within published consolidated financial statements unde rEU adopted IFRS
2.12
Harmonization
Many accounbtancy and stnadard setting bodies throughout the wolr invoved with work of IASB, many countries require or permit use of IFRS
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the FASB and the IASB have recently worked together to harmonize but they did not come to meeting of minds overall
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2.15 Inventoreis
Rquires inventories shoiuld b ee keasured at the lower cost and net realizable value, cost includes expenditures require to transform inventories into a saleable condition
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2.17
Covers changes in account poliies and correction of errors this involverd restating the comprative figures to take account of the adjustment
Change allowable if produces better financial information if a new standard introduce ornuipdated- change in account estimates only included in financial statements current and future account periods
Chapter 1
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1.2
Bookkeeping system which consists of maintiaing a record of the nature and monetary value of the trnascation of an organisation in books of account
Second function preparing final cfinancial statemtns from the book of account, and the fiancnail position
1.3F
Control aspect of an accounting system ensuring that correct amounts paid nto right people at right time
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1.5
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2nd Statment
Aggregates list of assets, liablities and equity at the reporting date- statment financial position
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Reportis from management
Including the ooperating and ginancial review, the directors' report, the chief executive's reprot, the renumeration report and the corporate governance report
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