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IFRS by Mind Map: IFRS

1. IASB=International Accounting Standards Board

1.1. Issues IFRS standards

1.2. Representatives from 100 countries

1.3. Key objective is to develop global standards and promote they usage

2. Issuing new standard

2.1. Discussion paper

2.1.1. Analysis Exposure Draft Analysis

3. IAS

3.1. IAS 16 (PPE)

3.1.1. Recognition Economic benefit Reliably measured

3.1.2. Cost Initial measurement Purchase Price Attributable costs Removal cost Subsequent measurement Cost model Revaluation Model

3.2. IAS 38 (Intangible Assets)

3.2.1. Identifiable, non monetary assets

3.2.2. Recognition Future economic benefit Reliable measurement

3.2.3. Capitalize No Start up costs Research expenditure Internally generated, such as goodwill Yes Development expenditure Purchased goodwill

3.2.4. R&D Expense research Capitalize development if feasible and carries future economic benefits

3.2.5. Measurement Cost model Revaluation model

3.2.6. Amortization Straight line In line with sales

3.3. IAS 37 (Provisions, Contigent Liabilities and Contigent Assets)

3.3.1. Provision =Liability of uncertain timing or amount When to recognize Present obligation Propable Outflow Reliable estimate Measurement Expected value Individual most likely outcome

3.3.2. Contigencies Contigent Liabilities Possible obligation Present obligation + outflow possible not probable or not reliably measured Contigent Assets Possible asset + inflow is probable


4.1. IFRS 16 (Leasing)

4.1.1. Lessee Right-of-use asset Lease liability

4.1.2. Lessor Finance Lease Debit: Leas receivable Credit PPE Operating lease Lease payments Asset

4.1.3. Definition The right to control the use of asset For a period of time

4.1.4. Sale & Leaseback

4.2. IFRS 15 (Revenue Recognition)

4.2.1. 5 Step Model 1. Identify the contract 2. Identify the performance Obligation 3. Determine the transaction 4. Allocate the TP to the PO 5. Recognise revenue

4.3. IFRS 10 Consolidated Financial Statements

4.3.1. Outlines the requirements for the preparations and presentation of consolidated financial statement

4.3.2. Parent entity and subsidiaries

4.3.3. Defines principle of control

4.3.4. Sets accounting requirements for the preparation of consolidated financial statements The financial Statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as of single economic entity

4.3.5. Consolidatedp procedures Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with its subsidiaries Eliminate the carrying amount of the parent's investment in its subsidiaries Eliminate intragroup transactions

4.4. IFRS 3 (Business Combinations)

4.4.1. Determining if transaction is a business combination Input (An economic resource) Process Output (the result)

4.4.2. Accounting Acquisition method 1. Identify acquirer 2. Determine acquisition date 3. Recognise assets, liabilities and non-controlling interest 4. Recognise goodwill

5. Framework

5.1. Objective of Financial reporting

5.1.1. Provide Financial information about the reporting entity for i.e. investors

5.2. The qualitative characteristics and constraints

5.2.1. Comparability

5.2.2. Verifiability

5.2.3. Timeliness

5.2.4. Undersandability

5.2.5. Reliability

5.2.6. Relevance

5.3. The definition, measurement and recognition of elements from which Financial statements are constructed

5.3.1. Assets

5.3.2. Liabilities

5.3.3. Equity

5.3.4. Performance

5.3.5. Income

5.3.6. Expenses

5.4. Assumptions

5.4.1. Accrual Accounting

5.4.2. Going Concern