Constants in C++

The conceptual framework is not an IAS (IFRS) In the event of a conflict with an IAS, the requirements and regulation set by the IAS (IFRS) take precedence.

Defining, recognizing and measuring the elements that make up PF

Kept the concepts of capital and capital conservation the framework deals with the rules for PFs published for general purposes: Consolidated Individuals The framework does not regulate the PF designed for specific purposes that the unit can prepare. However, where possible and efficient, the principles and requirements of the conceptual framework can also be used to construct unpublishable information. Extension of the implementation of the CF published for general purposes, Implemented for both individual and consolidated CFs which are published at least once a year. Applied to all units regardless of the nature of the activity they perform, commercial, industrial, financial, etc. They apply to all units, regardless of their legal form or public or private form of their ownership. Responsibility for drafting the FF the management of the entity. When drafting the FF, the requirements and information needs of users should be taken into account, in order for them to meet their purpose in providing a useful information in economic decision making by their users. Of course the annual published PF cannot meet all the needs of users for information. They mainly meet the information needs of investors, thus meeting most of the needs of other users. Of PF. The management of the entity has a position of double about PF: First, it is presented as their compiler and compiler. According to the conceptual framework of the IAS is the direction of economic entity who has the first responsibility for preparation and submission of financial statements unit. Second, the direction of the unit is also presented in the role of PF information users. KK stipulates that based on the objective of PF the unit should build: Yrën Financial Position Statement (Balance Sheet) Yrën Income Statement and Inclusive Expenditures (Performance)

◦ Cash Flow Statement

  Statement of Changes in Net Capital

 The conceptual framework stipulates that all parts of the PF must are related to each other Additional PF Notes and statements Annexes The conceptual framework emphasizes the need to provide additional information in PF in the form of notes, tables and other information. They constitute the explanatory notes of the PF.

The purpose of this additional information is to meet the needs of users on the elements of the balance sheet and its statement income and expenses (Information on uncertainties, loans, geographical extent, etc.).

Basic assumptions

a) Growth-based accounting

b) Going concern

. Qualitative characteristics of PF

◦ Comprehensibility,

◦ Importance,

◦ Reality and reliability, e

. Comparability.

. Impacts on the importance and reliability of


True and fair presentation

Fair Presentation The true and sincere presentation of information in the financial statements is ensured when the economic entities apply those national or international accounting principles for their construction, which ensure that their information is available. The qualitative characteristics mentioned above.

Choosing the right moment when an element will be included in the PF directly affects the quality of the PF and the information they provide.

. Recognition is the process of being included in the balance sheet or its statement income of an element. This process includes: Riming description of the element in words and by a monetary amount and

. The inclusion of this amount in the total balance sheet or its statement income.

◦ According to the conceptual framework only when the element meets the criteria of recognition he must be recognized in the balance sheet or in the income statement.

General basic criteria of recognition

These general criteria require the fulfillment of the following conditions:

a) It is possible that future benefits economic in relation to the element will emerge or will enter the entity

b) The element has a cost or value that can be measured reliably.

Specific criteria for recognizing PF elements

1) Recognition of assets

An asset is recognized in the balance sheet when the terms of following:

. When owned (controlled) by the entity

. When it is possible that future economic benefits of enter the entity

. When the asset has a cost or value that can be measured in order believable.

◦ Egg. Goods that have been purchased for the purpose of reselling them or one investment in the capital of an entity for profit of dividends (Why?)

Recognition of obligations

An obligation is recognized in the balance sheet when the conditions of following: when it is possible that an output of the resources which carry economic benefits, will result from the repayment of one current obligation and The amount at which repayment will be made can be measured in reliable way.

g. An obligation arising from the law to pay the tax on profit, or an obligation arising from a contract to perform a service after receiving advance payment (Why?)

 Recognition of income

Revenue is recognized in the income statement when: Linder there is an increase in future economic benefits, benefits which are related to an increase in assets or to one reduction in liabilities; and

. Growth in economic benefits can be measured in such a way reliable.

◦ Egg. Sale of cash or cash collection subsequent recognition of the mature part of the interests of collected in advance from an investment in Treasury Bills

Posted in C++


Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Statements in C++ part 2

Wed Apr 1 , 2020
Input estimate – at the cost of their purchase. Commissions, plus any other eventual purchase costs are presented in the cost or as period expenses as the case may be. In the event that they are provided as a contribution as equity are valued at the value specified in the […]

You May Like