Summary

Learning Unit 6 Summary

0 purchase

Course
Financial Accounting (FAC3764)

Institution
University Of South Africa (Unisa)

This summary includes Accounting Policies, Changes in Accounting Estimates and Errors. It summarizes the entire learning unit so that you can recap and spend more time on doing activities.

[Show more]

Preview 2 out of 6 pages

View example

Uploaded on July 13, 2024
Number of pages 6
Written in 2023/2024
Type Summary

learning unit 6 summary

haaimy04 Member since 1 year 28 documents sold

R100,00

Also available in package deal from R192,00

Add to cart

Save

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

Document also available in package deal (1)

FAC3764 Summary

R 480,00 R 192,00 5 items

1. Summary - Fac3764 summary
2. Summary - Learning unit 6 summary
3. Summary - Learning unit 6 - the effects of changes in foreign exchange rates
4. Summary - Ias 19 employee benefits summary
5. Summary - Learning unit 7: financial instruments summart
Show more

Financial Accounting (FAC3764)
SUMMARY of Learning Unit 6

STANDARDS:

- IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 21: The Effects of Changes in Foreign Exchange Rates

IAS 8: ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS

IAS 8 covers 3 main areas:

1. Accounting policies –
• How to select or develop accounting policies.
• How to change accounting policies.
2. Accounting estimates –
• How to change accounting estimates.
3. Errors –
• How to correct errors.

1. Accounting Policies

Accounting policies are the specific principles, bases, conventions, rules and practices
applied by an entity in preparing and presenting financial statements.

SELECTION AND APPLICATION OF ACCOUNTING POLICIES
TRANSACTION/ EVENT

Find a relevant IFRS and apply the policies therein.

Sets out accounting policies If IFRS contains GUIDANCE that is
containing relevant and integral any requirements
reliable information about contained in the guidance are
the transaction/event to MANDATORY and must be applied.
which they apply.

, In the absence of an IFRS

(no accounting policy for the transaction/event)

RELEVANT, RELIABLE, JUDGEMENT

Management shall use its judgement in developing and applying an accounting policy that
results in information that is:
1. Relevant – relevant to the economic decision-making needs of users.
2. Reliable – in the AFS
• Faithful representation of financial position, financial performance & cashflows
• Reflect the economic substance
• Neutral (no bias)
• Prudent
• Complete form material respects
3. Judgement – Management shall refer to and consider the applicability of the following
• IFRS requirements with similar issues
• Definitions, recognition criteria and measurement concepts for assets, liabilities,
income and expenses in the CF
• Management may also consider the most recent pronouncements of other
standard- setting bodies that use similar CF to develop accounting standards

CONSISTENCY OF ACCOUNTING POLICIES
An entity shall select and apply its accounting policies consistently for similar transactions,
other events and conditions, unless an IFRS specifically requires or permits its categorisation
of items for which different policies may be appropriate.

CHANGES IN ACCOUNTING POLICIES
An entity shall change an accounting policy only if the change:

(a) Is required by an IFRS; or
(b) Is a voluntary change resulting in reliable and more relevant representation.

The following are not changes in accounting policies:

(a) The application of an accounting policy for transactions/events that differ in substance
from those previously occurring; and
(b) The application of a new accounting policy for transactions/events that did not occur
previously or were immaterial.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller haaimy04. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R100,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

71851 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling

Seller

Summary ·

Package deal ·

Exam (elaborations) ·

Summary

Learning Unit 6 Summary

Document information

Subjects

Written for