IAS & accounting concepts -mock overview

IAS 1

presentation of financial statements

IAS 2

inventories

IAS 7

statement of cash flows

IAS 8

accounting policies, changes in accounting estimates and errors

IAS 10

events after the reporting period

IAS 16

property, plant and equipment

IAS 36

impairment of assets

IAS 37

provisions, contingent liabilities and contingent assets

IAS 38

intangible assets

going concern

it assumes that the business will continue to operate in the foreseeable future

matching/accrual

the principle that expenses should be matched with the revenues they help to generate in the same accounting period.

prudence/conservatism

profits should not be anticipated or overstated and provision should be made for all possible losses

consistency

the principle that financial statements should be prepared using the same methods and procedures from one period to the next, allowing for comparability.

business entity

The principle that a business's financial transactions should be separately recorded and reported, distinct from its owner's personal transactions.

money measurement

The principle that only transactions measurable in monetary terms are recorded in financial statements, excluding qualitative factors.

historical cost

is the principle that assets and liabilities are recorded at their original purchase price, providing a reliable measure of value in financial statements.

duality

every debit entry must have its corresponding credit entry

materiality

is the accounting concept that dictates that all significant information should be disclosed in financial statements, as omitting it could influence the economic decisions of users.

realisation

is the accounting concept that revenue is recognized when it is earned and realizable, regardless of when cash is received.