Acca Financial accounting (100% Errorless Answers)

The major purpuse of IASB is to ensure consistency in correct answers corporatel reporting The leadership style that least acknowledges contribution that subordinates have to make is correct answers autocratic a sole traders net profit for period we can calculate as correct answers closing net assets+drawings-capital introduced- opening net assets Imprest (zaliczkowy) system of operating petty cash correct answers The exact amount of expanditure is reimbursed at intervals to maintain a fixed float. For issuing IFRSs responsible is correct answers IASB The IFRS Foundation is correct answers a non-for-profit private organisation working in the public interest. It is governed by a board of trustees who appoint members to the IASB, the IFRS Advisory Council and IFRS Intepretations Committee. It also oversees the regulatory system and raises the finance necessary to suppport it. IFRS are designed primarily for correct answers profit-oriented entities. Two characteristics given in the Conceptual Framework for Financial Reporting are correct answers completeness and neutrality The Conceptual Framework's definition of income is correct answers "increases in economic benefits during the accounting period arising in the form of inflows or enhancements of assets or decreases of liabililities that result in increases in equity, other than those relating to contributions from equity participants' A credit sale meet this definition as it will increase profit and therefore retained earnings and equity. A revaluation of a property also meets this definition as it will be recorded in other comprehensive income and therefore increase the revaluation surplus and equity. However, a share issue is a contribution from equity participants and therefore does not the definition of an asset. Repayment of a loan results in a reduction in an asset (cash) and a liability (loan) rather than income. IASB Conceptual Framework's six qualitative characteristics of financial information are correct answers timeliness, verifiability, comparability, faithful representation, relavance , understandability. Financial reporting is a way of correct answers recording, analysing and summarising financial data from 2005 in The uk ifrs is to be used for correct answers consolidated statements