IFRS Mind Maps back on sale

Last year we stopped selling our IFRS Mind Maps as they were getting a little dated. Since then, quite a number of you have contacted us asking for them to be put on the market and updated. Today, after quite a bit of work, I’m delighted to announce our IFRS mind maps are back on …

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New questions in our IAS 7 Quiz

We’ve just added a few more applied questions to our IAS 7 Statement of Cash Flows quiz. Some of the areas we’ll test you are:– Do you know what to add back and subtract from an indirect statement of cash flows?– Do you know what goes into operating activities, investing activities and financing activities? – …

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Valuation of inventory/stock under IAS 2

Under IAS 2 inventory should be valued at the lower of Cost & Net Realisable value Cost = all expenditure incurred in bringing the product to its present location and condition. This includes costs such as transport, import duties, production overheads etc. It excludes things like selling costs, abnormal waste, general expenses, storage costs. NRV …

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Understanding the Purpose of Conceptual Framework for IFRS

What is the purpose of the Conceptual Framework?

If there were no framework for preparing financial statement, accounting standards would be developed in a random, haphazard way to deal with issues as they arise. This would result in standards which would be inconsistent with each other or legislation.

By having a single conceptual framework, preparers and users of financial statements understand that accounting practices and accounting standards are based on this common ideology.

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Journal Entries for Financial Assets and Financial Liabilities held at Fair Value Through Profit or Loss (FVTPL) under IFRS 9

IFRS 9 requires changes in fair value on financial liabilities designated as at FVTPL to be split into: the amount of change in fair value attributable to changes in credit risk of the liability, (presented in OCI) and the remaining amount (presented in P&L). The new guidance allows the recognition of the full amount of …

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Primary Users of Financial Statements & their Information Needs under IFRS

There are various different users of financial statements, each with different information needs. The older conceptual frameworks identified groups such as government and general public as primary users. However, the 2018 Conceptual Framework has cut this back to just three key groups. The Conceptual framework lists the primary users of financial statements as: Investors – …

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What you Need to Know About Inventories for IAS 2

Scope of IAS 2 Inventories IAS 2 applies to all inventories except: Financial instruments (IFRS 9/IAS 39) Biological assets (IAS 41) Does not apply to measurement of inventories held by: Producers of agricultural and forest products measured at NRV. Minerals and mineral products measured at NRV. Commodity brokers who measure inventory at fair value less …

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