What are the steps to be taken in preparing IFRS financial statements for the first time?
What will be an ideal response?
There are five (5) steps to preparing IFRS financial statements for the first time. Step 1 - Determine the applicable IFRS accounting policies based on standards in force on the reporting date. Step 2 - Recognized assets and liabilities required to be recognized under IFRS that were not recognized under previous GAAP and derecognize assets and liabilities previously recognized that are not allowed to be recognized under IFRS. Step 3 - Measure assets and liabilities recognized on the opening balance sheet in accordance with IFRS. Step 4 - Reclassify items previously classified in a different manner from what is acceptable under IFRS. Step 5 - Comply with all presentation and disclosure requirements.
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At the beginning of the year, Wilson Steel, Inc. purchased 10,000 shares of Barnes Metals, Inc. for $34,000 in exchange for cash and now holds 3.2% of the voting stock of Barnes Metals, Inc. The management of Wilson Steel intends to hold this stock for two years. Assuming no other transaction happened during the year, the ________ in the balance sheet will increase.
A) long-term assets B) cash C) total assets D) current assets
Which of the following is not one of the characteristics of an entrepreneurial opportunity?
A. achievable B. value creating C. affordable D. attractive
Optimal capital structure "first" criteria suggests that RISK should be ________ and that the best way to obtain that is with ________ levels of debt and ________ levels of equity
A) high; high; low B) low; high; low C) low; low; high D) high; low; high
If a court determines that a manager's corporate decision amounted to self-dealing,
A. the business judgment rule will not apply. B. the transaction being challenged will be automatically voided. C. the manager is automatically personally liable to the corporation. D. the manager will automatically be fired.