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International Financial Reporting: Conceptual Framework, First Time Adoption, Lease

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Added on  2022-12-28

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This document provides an overview of international financial reporting, including the IASB’s Conceptual Framework, first-time adoption of IFRS, and lease accounting. It discusses the main purposes of the Conceptual Framework, the assumption underlying the preparation of financial statements, the concepts of capital maintenance, and the qualitative characteristics of financial statements. It also explores the concept of materiality in financial reporting and explains the terms 'first IFRS reporting period' and 'date of transition'. The document further covers the requirements of IFRS1 for Prisca Plc and provides information on lease accounting and the calculation of the interest rate implicit for the lease.

International Financial Reporting: Conceptual Framework, First Time Adoption, Lease

   Added on 2022-12-28

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International Financial Reporting: Conceptual Framework, First Time Adoption, Lease_1
Table of Contents
INTRODUCTION...........................................................................................................................4
PART A...........................................................................................................................................4
QUESTION 1...................................................................................................................................4
IASB's Conceptual framework:...................................................................................................4
Explain the main purposes of the IASB’s Conceptual Framework document:...........................5
Discuss the assumption which (according to the IASB’s Conceptual Framework) underlies the
preparation of financial statements:.............................................................................................5
Explain the main concepts of capital maintenance, making references to the IASB’s
Conceptual Framework:...............................................................................................................6
Identify and explain the meanings of five qualitative characteristics and attributes of financial
statements including how they respectively make financial information useful as entrenched in
the IASB’s Conceptual Framework:............................................................................................6
Critically discuss how concept of materiality is fundamental to financial reporting:.................7
QUESTION 2...................................................................................................................................8
First time adoption for international financial reporting standard:..............................................8
explain the terms "first IFRS reporting period" and "date of transition":....................................8
what are the requirements of IFRS1 which must be satisfied by Prisca Plc when preparing
these financial statements:...........................................................................................................8
PART B............................................................................................................................................9
QUESTION 4...................................................................................................................................9
A. Lease:......................................................................................................................................9
B. Calculation for interest rate implicit for the lease:..................................................................9
B. Accounting entries when residual proper value is Zero:.......................................................10
QUESTION 6.................................................................................................................................10
Cash flow statements:................................................................................................................10
International Financial Reporting: Conceptual Framework, First Time Adoption, Lease_2
A. The Statement of Cash Flows for Cross Dale Limited for the year to 31 December 2019 in
accordance with the requirements of IAS 7:..............................................................................10
B. the use of the direct method would give the same figure for ‘Cash generated from
operations’:................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
International Financial Reporting: Conceptual Framework, First Time Adoption, Lease_3
International Financial Reporting: Conceptual Framework, First Time Adoption, Lease_4

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