Yakub02
Banned
Selection of accountingpolicies Selection of accounting policies –
Areas covered by IFRS If an IFRS (or an Interpretation) applies to an item in the financial statements, the accounting policy or policies applied to that item must be determined by applying the Standard or Interpretation and any relevant implementation guidance issued. Selection of accounting policies
– Area not covered by IFRS If there is no rule in IFRS that specifically applies to an item in the financial statements, management must use its judgement to develop and apply an accounting policy that results in information that is:
relevant to the decision-making needs of users; and
reliable in that the financial statements; represent faithfully the results and financial position of the entity;
reflect the economic substance of transactions and other events, and not merely the legal form;
are neutral, i.e. free from bias; are prudent; and are complete in all material respects. In making the judgement management must consider the following sources in descending order: the requirements and guidance in IFRS dealing with similar and related issues;
the definitions, recognition criteria and measurement conceppts for assets, liabilities, income and expenses set out in the “Framework”. Management may also consider the most recent pronouncements of other standard-setting bodies that use a similar conceptual framework to the extent that these do not conflict with the above sources
Areas covered by IFRS If an IFRS (or an Interpretation) applies to an item in the financial statements, the accounting policy or policies applied to that item must be determined by applying the Standard or Interpretation and any relevant implementation guidance issued. Selection of accounting policies
– Area not covered by IFRS If there is no rule in IFRS that specifically applies to an item in the financial statements, management must use its judgement to develop and apply an accounting policy that results in information that is:
relevant to the decision-making needs of users; and
reliable in that the financial statements; represent faithfully the results and financial position of the entity;
reflect the economic substance of transactions and other events, and not merely the legal form;
are neutral, i.e. free from bias; are prudent; and are complete in all material respects. In making the judgement management must consider the following sources in descending order: the requirements and guidance in IFRS dealing with similar and related issues;
the definitions, recognition criteria and measurement conceppts for assets, liabilities, income and expenses set out in the “Framework”. Management may also consider the most recent pronouncements of other standard-setting bodies that use a similar conceptual framework to the extent that these do not conflict with the above sources
