Registered Auditing & Accounting Firm operating from Arusha Tanzania. We are member firm of AGN International, a worldwide association of separate and independent accounting and consulting firms serving business organizations throughout the world.
This document discusses various performance measurement and compensation systems for businesses. It covers topics like goal congruence, feedback, return on investment, residual income, economic value added, balanced scorecards, and components of management compensation like salary, bonuses, profit sharing, and stock options. The key themes are how to align employee and company goals, measure performance, and reward performance in a way that maximizes shareholder value.
The document provides information about financial reporting and annual reports for companies. It discusses key components of annual reports including the director's report, financial statements, audit report, income statement, balance sheet, cash flow statement, and statement of owner's equity. It also covers notes to the financial statements, stakeholders' interests in financial statements, qualities and limitations of financial statements, responsibilities for financial statements, misleading financial statements, and consequences of unreliable financial statements.
This document summarizes IFRS 5, which specifies accounting for non-current assets held for sale and discontinued operations. IFRS 5 outlines criteria for classifying non-current assets as held for sale, including that the sale must be highly probable within one year. Assets held for sale are measured at fair value less costs to sell and are presented separately in financial statements. The standard also provides guidance on presenting discontinued operations and additional disclosure requirements.
This document discusses the key aspects of Ind AS 21 on the effects of changes in foreign exchange rates. It covers the scope of the standard, exclusions, key definitions like functional currency, foreign currency, presentation currency etc. It explains the primary and secondary factors to identify the functional currency.
The document then discusses the accounting treatment for transactions in foreign currency including initial recognition, subsequent measurement of monetary and non-monetary items. It also covers the special transition treatment for long term foreign currency monetary items as per Ind AS 101.
The document further explains the translation of financial statements of foreign operations to the presentation currency. It summarizes the consolidation procedures for foreign operations including the treatment of intra-group balances and exchange differences. Last
This document discusses the revaluation of fixed assets. It provides reasons for revaluation including providing more useful information to financial statement users and enabling better performance ratio calculations. The process of revaluation involves crediting a revaluation reserve account and debiting the asset account to reflect the updated market value. When the revalued asset is later disposed of, the revaluation reserve is debited and a revenue reserve is credited for the total revaluation amount related to that asset. Things to note include transferring depreciation on revalued assets to the revaluation reserve and using the latest revalued amount, not original cost, for assets sold after being revalued.
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...ESHETIE MEKONENE AMARE
This document provides an introduction and overview of International Financial Reporting Standards (IFRS). It defines IFRS as a single set of high-quality global accounting standards issued by the International Accounting Standards Board. The purpose of IFRS is to increase transparency and comparability for investors and other users of financial statements. The document outlines the IASB standard-setting process and lists the authoritative IFRS pronouncements. It also discusses Ethiopia's adoption of IFRS for financial reporting and the role of the Accounting and Auditing Board of Ethiopia in regulating IFRS implementation. Finally, it introduces the IFRS Conceptual Framework which establishes fundamental concepts for financial reporting.
This document provides illustrative examples that accompany the International Financial Reporting Standard (IFRS) 16 on leases. The examples illustrate how to identify whether a contract contains a lease, allocate consideration to lease and non-lease components, measure lease liabilities and right-of-use assets from the perspective of a lessee, account for variable lease payments and lease modifications, classify and account for subleases, and disclose information about leases. The first example illustrates how a contract for the use of rail cars contains an identified asset and meets the definition of a lease, while a contract simply for the transportation of goods using a fleet of similar rail cars does not contain an identified asset.
The presentation discusses the meaning and objectives of corporate financial reporting. Financial reporting involves communicating a company's financial status to stakeholders through statements that disclose information about resources, obligations, income, cash flows, and equity. The objectives are to provide useful information to help present and potential investors, creditors, and others make rational decisions by assessing amounts, timing, and uncertainty of prospective cash flows and assessing a company's net cash inflows. Financial reports include the balance sheet, income statement, statement of cash flows, and statement of changes in equity.
This document discusses various performance measurement and compensation systems for businesses. It covers topics like goal congruence, feedback, return on investment, residual income, economic value added, balanced scorecards, and components of management compensation like salary, bonuses, profit sharing, and stock options. The key themes are how to align employee and company goals, measure performance, and reward performance in a way that maximizes shareholder value.
The document provides information about financial reporting and annual reports for companies. It discusses key components of annual reports including the director's report, financial statements, audit report, income statement, balance sheet, cash flow statement, and statement of owner's equity. It also covers notes to the financial statements, stakeholders' interests in financial statements, qualities and limitations of financial statements, responsibilities for financial statements, misleading financial statements, and consequences of unreliable financial statements.
This document summarizes IFRS 5, which specifies accounting for non-current assets held for sale and discontinued operations. IFRS 5 outlines criteria for classifying non-current assets as held for sale, including that the sale must be highly probable within one year. Assets held for sale are measured at fair value less costs to sell and are presented separately in financial statements. The standard also provides guidance on presenting discontinued operations and additional disclosure requirements.
This document discusses the key aspects of Ind AS 21 on the effects of changes in foreign exchange rates. It covers the scope of the standard, exclusions, key definitions like functional currency, foreign currency, presentation currency etc. It explains the primary and secondary factors to identify the functional currency.
The document then discusses the accounting treatment for transactions in foreign currency including initial recognition, subsequent measurement of monetary and non-monetary items. It also covers the special transition treatment for long term foreign currency monetary items as per Ind AS 101.
The document further explains the translation of financial statements of foreign operations to the presentation currency. It summarizes the consolidation procedures for foreign operations including the treatment of intra-group balances and exchange differences. Last
This document discusses the revaluation of fixed assets. It provides reasons for revaluation including providing more useful information to financial statement users and enabling better performance ratio calculations. The process of revaluation involves crediting a revaluation reserve account and debiting the asset account to reflect the updated market value. When the revalued asset is later disposed of, the revaluation reserve is debited and a revenue reserve is credited for the total revaluation amount related to that asset. Things to note include transferring depreciation on revalued assets to the revaluation reserve and using the latest revalued amount, not original cost, for assets sold after being revalued.
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...ESHETIE MEKONENE AMARE
This document provides an introduction and overview of International Financial Reporting Standards (IFRS). It defines IFRS as a single set of high-quality global accounting standards issued by the International Accounting Standards Board. The purpose of IFRS is to increase transparency and comparability for investors and other users of financial statements. The document outlines the IASB standard-setting process and lists the authoritative IFRS pronouncements. It also discusses Ethiopia's adoption of IFRS for financial reporting and the role of the Accounting and Auditing Board of Ethiopia in regulating IFRS implementation. Finally, it introduces the IFRS Conceptual Framework which establishes fundamental concepts for financial reporting.
This document provides illustrative examples that accompany the International Financial Reporting Standard (IFRS) 16 on leases. The examples illustrate how to identify whether a contract contains a lease, allocate consideration to lease and non-lease components, measure lease liabilities and right-of-use assets from the perspective of a lessee, account for variable lease payments and lease modifications, classify and account for subleases, and disclose information about leases. The first example illustrates how a contract for the use of rail cars contains an identified asset and meets the definition of a lease, while a contract simply for the transportation of goods using a fleet of similar rail cars does not contain an identified asset.
The presentation discusses the meaning and objectives of corporate financial reporting. Financial reporting involves communicating a company's financial status to stakeholders through statements that disclose information about resources, obligations, income, cash flows, and equity. The objectives are to provide useful information to help present and potential investors, creditors, and others make rational decisions by assessing amounts, timing, and uncertainty of prospective cash flows and assessing a company's net cash inflows. Financial reports include the balance sheet, income statement, statement of cash flows, and statement of changes in equity.
Horizontal analysis is also known as Trend Analysis refers to studying the behavior of individual financial statement items over several accounting periods. The Vertical Analysis concentrates on the relationships between various financial items on a financial statement. Copy the link given below and paste it in new browser window to get more information on Horizontal and Vertical Analysis:- http://www.transtutors.com/homework-help/accounting/horizontal-and-vertical-analysis.aspx
This document defines key terms related to revenue recognition under IFRS 15, including revenue, contracts, contract assets and liabilities. It then summarizes the 5-step model for recognizing revenue: 1) identify the contract, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate price to obligations, 5) recognize revenue when obligations are satisfied. Examples are provided for determining variable consideration, allocating transaction price, and principal vs agent considerations. Revenue is recognized over time if criteria are met, otherwise at a point in time.
This standard provides guidance on disclosure requirements for financial instruments. It aims to enable users to understand the significance of financial instruments for an entity's financial position and performance, as well as the nature and extent of risks arising from financial instruments. Key disclosure requirements include information on classes of financial assets and liabilities, fair value measurements, credit risk, liquidity risk, market risk, and hedge accounting. The standard requires both qualitative and quantitative disclosures to provide a comprehensive picture of an entity's exposure to various risks from its use of financial instruments.
IAS 10 prescribes the accounting treatment and disclosures required for events that occur after the balance sheet date but before financial statements are authorized for issue. It distinguishes between adjusting events that provide evidence of conditions that existed at the balance sheet date and non-adjusting events that are indicative of conditions that arose after that date. Financial statements must be adjusted for subsequent adjusting events, but not for non-adjusting events, although the latter may need to be disclosed. The standard also addresses the assessment of going concern and specifies certain additional disclosures required regarding the authorization date of the financial statements and material post-balance sheet date events or conditions.
IFRS 16 requires lessees to recognize most leases on their balance sheets. It establishes a single lessee accounting model, requiring lessees to recognize a right-of-use asset and lease liability for all leases, with exemptions for short-term leases and leases of low value assets. For lessors, accounting remains similar to the current standard IAS 17. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted. The new standard will significantly change lessee accounting and financial reporting and may impact many entities across various industries.
This document discusses the key requirements of Ind AS 19 on employee benefits. It covers the accounting for short-term employee benefits such as compensated absences, profit sharing and bonus plans. For post-employment benefits, it discusses the treatment for defined contribution plans which are expensed as incurred, and defined benefit plans which require actuarial valuation using the projected unit credit method. The document also discusses other long term benefits and termination benefits. Key disclosure requirements under Ind AS 19 are provided.
Ind AS 34 provides the requirements for interim financial reporting, requiring listed companies to publish interim financial reports on a quarterly basis. These interim reports must include at a minimum condensed statements of financial position, comprehensive income, changes in equity and cash flows, along with selected explanatory notes. The standard specifies the recognition and measurement principles to be applied in interim reports, which should use the same accounting policies as the annual financial statements.
- IAS 2 Inventories prescribes the accounting treatment for inventories and provides guidance on determining inventory costs and recognizing them as expenses. It applies to all inventories except work-in-progress for construction contracts and biological assets related to agricultural activity.
- Inventories must be measured at the lower of cost and net realizable value. Cost includes costs of purchase, costs of conversion, and other costs to bring inventories to their present location and condition. Net realizable value is the estimated selling price less costs to complete and sell.
- When inventories are sold, their carrying amount must be recognized as an expense. Write-downs to net realizable value and inventory losses must also be recognized as expenses.
This document outlines the accounting policies, changes in estimates and errors per Ind AS 8. It discusses the hierarchy for selecting accounting policies, requirements for disclosing accounting policies and judgments, and how to account for changes in policies, estimates and errors. When a policy changes due to a new standard, it is applied retrospectively with prior periods restated. Changes in estimates are applied prospectively. Errors are corrected by restating prior periods presented in the first set of financial statements after discovery. Limitations and disclosure requirements are also outlined.
IND AS 19 provides the accounting requirements for employee benefits. It covers short-term benefits like wages and salaries, post-employment benefits like pensions and other retirement benefits, other long-term benefits, and termination benefits. For short-term benefits, an entity recognizes a liability when benefits are due to employees. Defined contribution plans recognize an expense for contributions payable, while defined benefit plans use actuarial techniques to account for obligations. Key adjustments to defined benefit obligations include benefits paid, past service costs from plan amendments, and remeasurements from actuarial gains and losses.
This document provides an overview of auditing specialized industries and the audit of banks' financial statements. It discusses key concepts such as:
- Specialized industries have unique accounting and reporting standards that auditors must understand.
- When auditing specialized industries, auditors must ensure competence in the industry and obtain relevant guidance for risks and standards. They may rely on industry experts.
- Banks have distinguishing characteristics like risk of losses, fiduciary responsibilities, and regulatory oversight. Auditors of banks must understand the various risks banks face.
- Transaction cycles and risks in the banking industry like credit, market, operational, and fraud risks must be considered in audit planning and procedures.
1. IND AS 21 outlines the accounting treatment for foreign currency transactions and foreign operations. It addresses how to include such items in financial statements and how to translate financial statements into a presentation currency.
2. The standard establishes guidelines for determining an entity's functional currency. The functional currency is primarily the currency of the primary economic environment in which the entity operates, which is normally the currency that mainly influences sales prices and operating costs.
3. IND AS 21 provides rules for re-measuring foreign currency items into the functional currency, including the use of spot or average exchange rates. It also addresses the translation of financial statements from the functional currency into the presentation currency.
- IAS 33 provides guidance on calculating and presenting earnings per share (EPS) and related disclosures. It covers entities with publicly traded ordinary shares or potential ordinary shares.
- EPS is calculated as basic EPS and diluted EPS. Basic EPS uses existing shares, while diluted EPS shows what EPS would be if all potential ordinary shares were issued. Both require adjusting earnings and shares for various factors.
- The standard outlines specific calculation methods and requires disclosure of EPS amounts and reconciliations in the financial statements.
Financing current assets ppt @ bec doms bagalkot mba finaneceBabasab Patil
The document discusses different policies for financing current assets, including moderate, aggressive, and conservative policies, and examines the advantages and disadvantages of using various short-term financing options such as trade credit, bank loans, commercial paper, and secured loans. Short-term financing provides speed and flexibility but also risks from fluctuating interest costs and potential default during economic downturns.
This document defines key terms and outlines the accounting standards for agricultural activity under IND AS 41. It covers the scope, definitions of biological assets and agricultural produce, recognition and measurement at fair value less costs to sell for biological assets and agricultural produce at harvest, treatment of government grants, and disclosure requirements including presentation of biological assets separately on the balance sheet and disclosures of quantities, risks, and fair value changes.
The document discusses financial statements for internal and external purposes. It explains that internal financial statements are prepared for management and employees who are familiar with the business. They show expenses by natural category and provide limited additional notes. External financial statements are prepared under regulations like the Companies Act and have more disclosure requirements to be useful to outsiders like shareholders and creditors. The document then outlines the requirements for accounting records, components of financial statements, recognition and measurement principles, and disclosure standards in external financial statements under IFRS.
Accounting Standard 17 outlines requirements for segment reporting in financial statements. It requires companies to report financial information for different business segments and geographical segments. Applicable to listed companies and unlisted companies with annual turnover over Rs. 50 crores from April 2001. A business segment is a distinguishable component engaged in providing an individual product or service subject to different risks and returns. A geographical segment provides products/services in a particular economic environment subject to different risks and returns. Reportable segments meet certain thresholds for revenue, profit/loss, or assets. At least 75% of total revenue should be included in reportable segments. Comparative segment data is required. Primary reporting format is by business segment or geographical segment depending on how risks and returns are
This document provides definitions and guidance on preparing a statement of cash flows according to IAS 7. It defines key terms like cash and cash equivalents. It explains how to classify cash flows from operating, investing and financing activities and provides examples of cash flows that would fall under each classification. It also discusses the direct and indirect methods for preparing the statement of cash flows and how foreign currency, interest, dividends and taxes should be reported.
The document summarizes the key principles of IFRS 8 Operating Segments. It discusses how an entity is required to disclose segment information to enable users to evaluate the nature and financial effects of its business activities and economic environment. It outlines how operating segments and reportable segments are determined, including aggregation criteria and quantitative thresholds. It also describes the various disclosure requirements under IFRS 8 relating to general segment information, revenues, profits/losses, assets/liabilities, and reconciliation of segment information to entity-wide amounts.
IAS 1 establishes the overall framework and requirements for the presentation of financial statements. It requires entities to present a complete set of financial statements including a balance sheet, income statement, statement of changes in equity, and cash flow statement. It provides guidance on fair presentation, materiality, offsetting, comparative information, structure and minimum line items for each financial statement. It also outlines the disclosure requirements for the notes to the financial statements.
Horizontal analysis is also known as Trend Analysis refers to studying the behavior of individual financial statement items over several accounting periods. The Vertical Analysis concentrates on the relationships between various financial items on a financial statement. Copy the link given below and paste it in new browser window to get more information on Horizontal and Vertical Analysis:- http://www.transtutors.com/homework-help/accounting/horizontal-and-vertical-analysis.aspx
This document defines key terms related to revenue recognition under IFRS 15, including revenue, contracts, contract assets and liabilities. It then summarizes the 5-step model for recognizing revenue: 1) identify the contract, 2) identify separate performance obligations, 3) determine transaction price, 4) allocate price to obligations, 5) recognize revenue when obligations are satisfied. Examples are provided for determining variable consideration, allocating transaction price, and principal vs agent considerations. Revenue is recognized over time if criteria are met, otherwise at a point in time.
This standard provides guidance on disclosure requirements for financial instruments. It aims to enable users to understand the significance of financial instruments for an entity's financial position and performance, as well as the nature and extent of risks arising from financial instruments. Key disclosure requirements include information on classes of financial assets and liabilities, fair value measurements, credit risk, liquidity risk, market risk, and hedge accounting. The standard requires both qualitative and quantitative disclosures to provide a comprehensive picture of an entity's exposure to various risks from its use of financial instruments.
IAS 10 prescribes the accounting treatment and disclosures required for events that occur after the balance sheet date but before financial statements are authorized for issue. It distinguishes between adjusting events that provide evidence of conditions that existed at the balance sheet date and non-adjusting events that are indicative of conditions that arose after that date. Financial statements must be adjusted for subsequent adjusting events, but not for non-adjusting events, although the latter may need to be disclosed. The standard also addresses the assessment of going concern and specifies certain additional disclosures required regarding the authorization date of the financial statements and material post-balance sheet date events or conditions.
IFRS 16 requires lessees to recognize most leases on their balance sheets. It establishes a single lessee accounting model, requiring lessees to recognize a right-of-use asset and lease liability for all leases, with exemptions for short-term leases and leases of low value assets. For lessors, accounting remains similar to the current standard IAS 17. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted. The new standard will significantly change lessee accounting and financial reporting and may impact many entities across various industries.
This document discusses the key requirements of Ind AS 19 on employee benefits. It covers the accounting for short-term employee benefits such as compensated absences, profit sharing and bonus plans. For post-employment benefits, it discusses the treatment for defined contribution plans which are expensed as incurred, and defined benefit plans which require actuarial valuation using the projected unit credit method. The document also discusses other long term benefits and termination benefits. Key disclosure requirements under Ind AS 19 are provided.
Ind AS 34 provides the requirements for interim financial reporting, requiring listed companies to publish interim financial reports on a quarterly basis. These interim reports must include at a minimum condensed statements of financial position, comprehensive income, changes in equity and cash flows, along with selected explanatory notes. The standard specifies the recognition and measurement principles to be applied in interim reports, which should use the same accounting policies as the annual financial statements.
- IAS 2 Inventories prescribes the accounting treatment for inventories and provides guidance on determining inventory costs and recognizing them as expenses. It applies to all inventories except work-in-progress for construction contracts and biological assets related to agricultural activity.
- Inventories must be measured at the lower of cost and net realizable value. Cost includes costs of purchase, costs of conversion, and other costs to bring inventories to their present location and condition. Net realizable value is the estimated selling price less costs to complete and sell.
- When inventories are sold, their carrying amount must be recognized as an expense. Write-downs to net realizable value and inventory losses must also be recognized as expenses.
This document outlines the accounting policies, changes in estimates and errors per Ind AS 8. It discusses the hierarchy for selecting accounting policies, requirements for disclosing accounting policies and judgments, and how to account for changes in policies, estimates and errors. When a policy changes due to a new standard, it is applied retrospectively with prior periods restated. Changes in estimates are applied prospectively. Errors are corrected by restating prior periods presented in the first set of financial statements after discovery. Limitations and disclosure requirements are also outlined.
IND AS 19 provides the accounting requirements for employee benefits. It covers short-term benefits like wages and salaries, post-employment benefits like pensions and other retirement benefits, other long-term benefits, and termination benefits. For short-term benefits, an entity recognizes a liability when benefits are due to employees. Defined contribution plans recognize an expense for contributions payable, while defined benefit plans use actuarial techniques to account for obligations. Key adjustments to defined benefit obligations include benefits paid, past service costs from plan amendments, and remeasurements from actuarial gains and losses.
This document provides an overview of auditing specialized industries and the audit of banks' financial statements. It discusses key concepts such as:
- Specialized industries have unique accounting and reporting standards that auditors must understand.
- When auditing specialized industries, auditors must ensure competence in the industry and obtain relevant guidance for risks and standards. They may rely on industry experts.
- Banks have distinguishing characteristics like risk of losses, fiduciary responsibilities, and regulatory oversight. Auditors of banks must understand the various risks banks face.
- Transaction cycles and risks in the banking industry like credit, market, operational, and fraud risks must be considered in audit planning and procedures.
1. IND AS 21 outlines the accounting treatment for foreign currency transactions and foreign operations. It addresses how to include such items in financial statements and how to translate financial statements into a presentation currency.
2. The standard establishes guidelines for determining an entity's functional currency. The functional currency is primarily the currency of the primary economic environment in which the entity operates, which is normally the currency that mainly influences sales prices and operating costs.
3. IND AS 21 provides rules for re-measuring foreign currency items into the functional currency, including the use of spot or average exchange rates. It also addresses the translation of financial statements from the functional currency into the presentation currency.
- IAS 33 provides guidance on calculating and presenting earnings per share (EPS) and related disclosures. It covers entities with publicly traded ordinary shares or potential ordinary shares.
- EPS is calculated as basic EPS and diluted EPS. Basic EPS uses existing shares, while diluted EPS shows what EPS would be if all potential ordinary shares were issued. Both require adjusting earnings and shares for various factors.
- The standard outlines specific calculation methods and requires disclosure of EPS amounts and reconciliations in the financial statements.
Financing current assets ppt @ bec doms bagalkot mba finaneceBabasab Patil
The document discusses different policies for financing current assets, including moderate, aggressive, and conservative policies, and examines the advantages and disadvantages of using various short-term financing options such as trade credit, bank loans, commercial paper, and secured loans. Short-term financing provides speed and flexibility but also risks from fluctuating interest costs and potential default during economic downturns.
This document defines key terms and outlines the accounting standards for agricultural activity under IND AS 41. It covers the scope, definitions of biological assets and agricultural produce, recognition and measurement at fair value less costs to sell for biological assets and agricultural produce at harvest, treatment of government grants, and disclosure requirements including presentation of biological assets separately on the balance sheet and disclosures of quantities, risks, and fair value changes.
The document discusses financial statements for internal and external purposes. It explains that internal financial statements are prepared for management and employees who are familiar with the business. They show expenses by natural category and provide limited additional notes. External financial statements are prepared under regulations like the Companies Act and have more disclosure requirements to be useful to outsiders like shareholders and creditors. The document then outlines the requirements for accounting records, components of financial statements, recognition and measurement principles, and disclosure standards in external financial statements under IFRS.
Accounting Standard 17 outlines requirements for segment reporting in financial statements. It requires companies to report financial information for different business segments and geographical segments. Applicable to listed companies and unlisted companies with annual turnover over Rs. 50 crores from April 2001. A business segment is a distinguishable component engaged in providing an individual product or service subject to different risks and returns. A geographical segment provides products/services in a particular economic environment subject to different risks and returns. Reportable segments meet certain thresholds for revenue, profit/loss, or assets. At least 75% of total revenue should be included in reportable segments. Comparative segment data is required. Primary reporting format is by business segment or geographical segment depending on how risks and returns are
This document provides definitions and guidance on preparing a statement of cash flows according to IAS 7. It defines key terms like cash and cash equivalents. It explains how to classify cash flows from operating, investing and financing activities and provides examples of cash flows that would fall under each classification. It also discusses the direct and indirect methods for preparing the statement of cash flows and how foreign currency, interest, dividends and taxes should be reported.
The document summarizes the key principles of IFRS 8 Operating Segments. It discusses how an entity is required to disclose segment information to enable users to evaluate the nature and financial effects of its business activities and economic environment. It outlines how operating segments and reportable segments are determined, including aggregation criteria and quantitative thresholds. It also describes the various disclosure requirements under IFRS 8 relating to general segment information, revenues, profits/losses, assets/liabilities, and reconciliation of segment information to entity-wide amounts.
IAS 1 establishes the overall framework and requirements for the presentation of financial statements. It requires entities to present a complete set of financial statements including a balance sheet, income statement, statement of changes in equity, and cash flow statement. It provides guidance on fair presentation, materiality, offsetting, comparative information, structure and minimum line items for each financial statement. It also outlines the disclosure requirements for the notes to the financial statements.
This document compares accounting standards under IAS, US GAAP, UK GAAP, and Indian GAAP across various subjects:
- IAS and UK GAAP are generally similar, requiring 2 years of financial statements. US GAAP requires 3 years. Indian GAAP requires 2 years for listed companies.
- IAS allows overriding standards to give a true and fair view, while US GAAP and Indian GAAP do not allow overrides.
- Changes in accounting policies are treated similarly under IAS, US GAAP, and UK GAAP but Indian GAAP includes effects in the current period's income statement.
An Income Statement of a company is a financial statement that shows the company’s revenues and expenses during a specific accounting period. This statement reports the financial performance of the company. Copy the link given below and paste it in new browser window to get more information on Income Statement:- www.transtutors.com/homework-help/finance/income-statement.aspx
IFRS 5 provides guidance on the accounting for non-current assets held for sale and discontinued operations. It requires non-current assets or disposal groups that meet the criteria to be "held for sale" to be measured at the lower of carrying amount or fair value less costs to sell, and to be presented separately in the statement of financial position. A discontinued operation is a component of an entity that has either been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations. Additional disclosures are required for non-current assets held for sale and discontinued operations.
Bab 4 Income Statement and Related Informationmsahuleka
The document discusses key elements and objectives related to preparing and understanding income statements, including:
- The uses and limitations of income statements in evaluating past performance and predicting future cash flows
- Components of single-step and multiple-step income statements and how they differ
- Reporting of irregular items like discontinued operations, extraordinary items, and changes in accounting principles
- Intraperiod tax allocation and where earnings per share information is reported
This document provides an annual report submission for an MBA course assignment on International Accounting Standards at Bangladesh University. It includes an acknowledgements section, table of contents, and sections on the history and corporate governance of Grameenphone, an annual report for 2011, financial review, and conclusion. The document analyzes Grameenphone's corporate structure, board organization, control environment, board committees, and compliance with accounting standards.
This document summarizes the key requirements of IAS 1 regarding the presentation of financial statements. It outlines the general purpose and components of financial statements, including statements of financial position, comprehensive income, changes in equity, and cash flows. It describes the general features that financial statements must adhere to, such as fair presentation, going concern basis, accrual accounting, materiality and offsetting. It provides details on the minimum line items that must be presented in each financial statement and notes. In the end, it gives examples of how Burj Bank implemented IAS 1 in its own financial statements.
The document discusses the requirements of IAS 1 regarding the presentation of financial statements. It provides an overview of the components that must be included in a complete set of financial statements according to IAS 1, such as the statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, and accompanying notes. It also covers the principles of fair presentation, going concern assumption, materiality, and classifications of assets and liabilities as current vs. non-current.
The document provides information about accounting standards and principles. It defines generally accepted accounting principles as standards that have substantial authoritative support such as FASB standards. It explains the need for accounting standards to minimize dangers of bias, misinterpretation and inexactness in financial statements. It identifies the main financial statements as the balance sheet, income statement, statement of cash flows and statement of owners' equity. It also lists other means of financial reporting such as letters, schedules and reports.
The document discusses income statements and balance sheets. It defines an income statement as presenting a company's revenues, expenses and profits over a period of time, focusing on revenues and costs associated with revenues. It defines a balance sheet as summarizing a company's assets, liabilities, and shareholders' equity at a point in time, showing the relationship that assets equal liabilities plus owners' equity. It provides examples of components and formats for both financial statements.
The document discusses Sri Lanka's transition to International Financial Reporting Standards (IFRS). It provides an overview of SLFRS and LKAS accounting standards. It outlines the diagnostic stage for assisting companies transitioning to SLFRS, including the transition date, comparative period, and reporting period. Disclosure requirements under SLFRS are also summarized such as the minimum content required for financial statements and notes.
- Net sales decreased 2% in Q2 2016 compared to Q2 2015 while gross profit margin increased 160 basis points. Adjusted EBITDA improved 40% and earnings per share also improved.
- Bob Rosenblatt was named permanent CEO and total cash increased 150% in Q2 2016.
- Purchase frequency decreased 160 basis points while average selling price and net shipped units increased in Q2 2016.
Based on the facts provided:
- ABUGIDA plc incurred losses in 2018 but is projecting profits in the coming years due to expected favorable changes in government policies.
- The owners have arranged additional financing to support the entity's expansion plans and working capital needs for the next 12 months.
- While the current liabilities exceed current assets, alternative financing has been arranged indicating the entity will be able to meet its short-term obligations.
Therefore, it appears ABUGIDA plc has adequate resources to continue as a going concern for the foreseeable future. As such, the financial statements should be prepared applying the going concern assumption.
- The document is an investor presentation for a company's third quarter 2016 financial results.
- It highlights improvements in adjusted EBITDA (+1,400%), earnings per share (+33%), gross profit margin (+210 bps), and total cash (+219%) compared to the third quarter of 2015.
- The presentation includes sections on financial highlights, operating metrics, and financial statements to summarize the company's performance and financial position.
The document discusses the key financial statements required by IAS 1 including:
1) The statement of financial position which provides information on a company's assets, liabilities, and equity at a point in time.
2) The statement of comprehensive income which provides information on a company's financial performance including profit or loss and other comprehensive income.
3) The statement of changes in equity which shows changes in equity components from transactions with owners and total comprehensive income.
4) Notes to the financial statements which complement the financial statements by providing additional context.
Strategies To Overcome Bankruptcy PowerPoint Presentation SlidesSlideTeam
Strategies To Overcome Bankruptcy PowerPoint Presentation Slides is a virtual solution for astute business professionals. Our well-structured PowerPoint theme is suitable to showcase strategies to avoid bankruptcy. Elaborate on the influence of bankruptcy on an organization and illustrate ways to settle outstanding debts. Elucidate the financial health from the last 3 years, current risk areas, and unsettled liabilities to represent the present scenario. Utilize our issues of bankruptcy PPT template deck to present a detailed financial investigation. Portray key financial ratios, income statement, balance sheet, and cash flow statement. Our challenges of insolvency PowerPoint presentation help you in consolidating the impact, and future forecast after implementing strategies on the organization. Employ tabular format to compile methods of communicating with the stakeholders. Describe bankruptcy risk identification and mitigation strategies through this PPT slideshow. Address the bankruptcy process including the filing procedures and consequences. So, hit the button and begin instant personalization. Our Strategies To Overcome Bankruptcy PowerPoint Presentation Slides are explicit and effective. They combine clarity and concise expression. https://bit.ly/386saCu
This document discusses key financial statements including the balance sheet, income statement, and statement of cash flows. It provides examples of each statement for a sample company in 2002 and 2001. The balance sheet shows a company's assets, liabilities, and equity at a point in time. The income statement summarizes revenues and expenses over a period of time. The statement of cash flows reports how a company's activities affected cash flow over a given period.
Evine earnings investor presentation f16 q1 finalevine2015
- Net sales increased 5% in Q1 2016 compared to Q1 2015. Gross profit increased 7% over the same period.
- Adjusted EBITDA was $3.4 million in Q1 2016, down from $9.2 million in FY 2015.
- Net loss was $4.9 million in Q1 2016, compared to a net loss of $12.3 million in FY 2015.
This document provides the audited financial statements of onePULSE Foundation for the year ended December 31, 2018. It includes the independent auditors' report, statement of financial position, statement of activities, statement of cash flows, statement of functional expenses, and notes to the financial statements. The financial statements show that onePULSE had total net assets of $1,131,382 as of December 31, 2018, with $99,762 in net assets without donor restrictions and $1,031,620 in net assets with donor restrictions.
The document provides an overview of International Accounting Standard 7 on the statement of cash flows. It discusses the scope, objectives, definitions, presentation requirements, and reporting requirements for the statement of cash flows including the classification of cash flows as operating, investing and financing activities. It also covers topics like foreign currency cash flows, interest and taxes, subsidiaries, non-cash items, and the components of cash and cash equivalents that must be disclosed.
The document provides an overview of International Accounting Standard 7 on the statement of cash flows. It discusses the scope, objectives, definitions, presentation requirements, and reporting requirements for the statement of cash flows including the classification of cash flows as operating, investing and financing activities. It also covers topics like foreign currency cash flows, interest and taxes, subsidiaries, non-cash items, and the components of cash and cash equivalents that must be disclosed.
This document is the condensed consolidated interim financial statements of Hyundai Capital Services, Inc. and its subsidiaries for the period ending March 31, 2021. It includes the condensed consolidated statement of financial position, condensed consolidated statements of comprehensive income, changes in equity, and cash flows, as well as notes to the financial statements. The independent auditors' review report verifies that the financial statements were prepared according to accounting standards and that the review did not find any material misstatements.
- First quarter 2015 financial results showed solid performance with revenue increasing 8.2% on a constant currency basis and organic revenue growth of 6.1%. Adjusted EBITDA grew 3.4% and the adjusted EBITDA margin was maintained at 44.8%.
- Information segment organic revenue grew 6.3% driven by new business wins. Solutions segment organic revenue grew 14.4% due to growth in managed services and enterprise software. Processing segment organic revenue declined 2.4%.
- The company continues to maintain a strong balance sheet and reduced net debt by 28.3% through strong operating cash flow and cash inflows from option exercises.
- This document contains Quintiles' earnings presentation for the fourth quarter of 2014.
- Key highlights include 22.2% net new business growth, 9.3% constant currency service revenue growth, and 29.1% diluted adjusted earnings per share growth for Q4.
- For the full year 2014, Quintiles saw 10.1% constant currency service revenue growth, 31.1% diluted adjusted EPS growth, and $11.24 billion in diversified backlog.
FRS 101 provides guidance on preparing and presenting general purpose financial statements. It aims to ensure comparability within an entity's financial statements over time and between entities. FRS 101 requires a statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, and notes. It also provides guidelines on classifying assets and liabilities as current or non-current, and disclosing additional information in the notes. The financial statements must be clearly identified and present relevant information in a fair, comparable, and understandable manner.
The document discusses changes to Masonite's segment reporting structure following the deconsolidation of its South Africa business and sale of its door business in France. The new reporting structure will have three segments:
1) North American Residential
2) Europe
3) Architectural
Corporate & Other will include unallocated costs and immaterial businesses. Historical financial data from 2014-2015 is provided for the new segments and a reconciliation of Adjusted EBITDA to net income is included in an appendix.
The document is an investor presentation for a company's fourth quarter 2015 results. It includes a safe harbor statement noting forward-looking statements are subject to risks and uncertainties. It provides key metrics such as a 47% increase in cable/satellite homes reached, 50% year-over-year growth in mobile sales, and a 5% increase in average selling price. Adjusted EBITDA is used as a performance metric and reconciliation is provided excluding special items like restructuring costs. Financial summaries of income statements and balance sheets are also presented.
Corporate reporting involves the disclosure of financial and non-financial information about a company to various stakeholders. It includes integrated reporting, financial reporting, corporate governance reporting, executive remuneration reporting, corporate social responsibility reporting, and narrative reporting. In India, the legal framework for corporate reporting includes requirements from the Companies Act and SEBI. Listed companies must comply with disclosure norms on financial statements, board composition, shareholder relations, and other matters. The objectives of corporate reporting are to provide useful information to investors and other users to make informed decisions.
BancABC Consolidated financial statements for the year ended 31 DECEMBER 2015wgjlubbe
- The document is the consolidated financial statements of ABC Holdings Limited for the year ended 31 December 2015.
- It shows the company had a profit after tax of $0.5 million, an improvement from a loss of $58.5 million in 2014. Total assets were $1.81 billion.
- Key ratios showed improvements, with the return on average equity becoming positive and the non-performing loan ratio declining slightly.
Similar to Financial statements presentation and disclosure NCAA Case study (20)
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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Financial statements presentation and disclosure NCAA Case study
1. FINANCIAL STATEMENTS –
PRESENTATION AND DISCLOSURE
IAS 1 – Financial statements presentation, IAS
8 – Accounting policies, changes in
accounting Policies, estimates and Errors,
IAS 24 – Related party disclosures and TFRS
1 – Directors’ report
2. INTRODUCTION
This presentation aimed to assist participants in better
understanding what is general purpose financial statements,
contents and standard governing its preparations.
We will start by looking financial statements prepared in
accordance with IAS 1 – Presentation of Financial Statements
including disclosure required by IAS 8 – Accounting policies
and Errors and IAS 24 Related party disclosures
At end of IAS 1, we will look to another report published with
financial statements – directors’ report which is governed by
Tanzania Financial Accounting Standard 1 – Directors’ report
issued by NBAA
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 2
3. How to read IFRS 2012
IFRS official pronouncements issued 1 January 2012
has two books – Part A and Part B.
Part A – is the stand alone IFRSs and IASs without
accompanying documents such as basis of conclusion.
Part B – contain other accompanying documents
including basis of conclusion. If you are having
problem understanding a standard in Part A, then
go to Part B to find what was basis of that standard
Any reference to IFRS or IAS in this presentation is
referring to Part A.VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 3
4. IAS 1 – Presentation of Financial
Statements
The objective of IAS 1 is to describe the basis for
presentation of general purpose financial statements.
General purpose financial statements are financial
reports prepared to meet need of different groups such
as directors (decision making), TRA (tax assessment),
Ministry of Tourism (Assess performance of tourism
industry)etc
Definitions skipped
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 4
5. Purpose of general purpose financial
statements
We prepare financial statements to show:
Financial position (assets and liabilities)
Financial performance (revenue – expenses)
and
Cash flows (inflow and out flow of cash)
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 5
6. Features of general purpose financial
statements
Fair presentation and compliance
Going concern
Accrual basis
Materiality and aggregation
Offsetting
Frequency of reporting
Comparative
Consistence
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 6
7. Complete set of financial
statements
A statement of financial position;
A statement of comprehensive
income;
A statement of changes in equity;
A statement of cash flows;
Notes and other explanatory
information;
A statement of financial position as at
the beginning of the earliest
comparative period.
An entity may use titles for the statements other
than those used.
Refer Page 17
of NCAA 2012
FS
Refer 16
Refer page18
Page 19
Page 20 - 49
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 7
8. Remember the followings
If you have prior year adjustment or changes in
accounting policy – two years comparative shall be
required
Titles do not matter – balance/statement of financial
position
Single statement - Statement of profit or loss with other
comprehensive income OR Statement of profit or loss
AND Other comprehensive statements separately.
If NCAA financial statements comply with IFRSs, an
explicit statement of compliance shall be made refer
Page 20, Para 2.1
Frequency of reporting is normally 12 months. If
financial statements’ reporting period is longer or
shorter than 12 months, reason shall be disclosed
Comparative figures both number and narrative shall
be disclosed.
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 8
9. An Entity shall clearly identify each
financial statement and the notes by
showing
The name of reporting entity
Distinction between an individual entity and a
group of entities
The date of the end of the reporting period Or
period covered by the set of financial
statements or notes
The presentation currency
The level of rounding used in presenting
amounts in the financial statements
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 9
10. An Entity shall clearly identify each
financial statement and the notes by
showing (Cont.)
NGORONGORO CONSERVATION AREA AUTHORITY (NCAA)1
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE2
YEAR ENDED 30 JUNE 20123
2012 2011
Notes TZS4
TZS5
Revenue
Tour income 8 57,801,798,518 48,416,421,388
Other income 9 718,586,149 626,604,328
1
Name of the entity
2
Name of financial statement
3
Reporting date or period covered by the financial statements
4
Presentation currency
55
Level or rounding (whole number)
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 10
11. Statement of financial position
As a minimum statement of financial position
shall include
a) Property, plant and equipment
b) Investment property
c) Intangible assets
d) Financial assets (excluding (e),(h) and (i)
e) Investments accounted using equity method
f) Biological assets
g) Inventories
h) Cash and cash equivalents
i) The total assets classified as held for sale
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 11
12. Statement of financial position
(Continue.)
Trade and other payables
Provisions
Financial liabilities (excluding shown under (k)
and (l)
Tax liabilities and assets for current liabilities, as
per IAS 12
Deferred tax liabilities and assets as per IAS 12
Liabilities included in disposal group classified as
held for sale as per IFRS 5
Issued capital and reserves attributed to owners of
the parent
Deferred tax liabilities or assets should not be
classified as current liabilities or assets
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 12
13. Statement of profit or loss and other
comprehensive income
Line items
Revenue;
Finance costs;
Share of the profit or loss of associates and joint ventures - equity
method
Tax expense;
Total amount comprising the total of:
◦ the post-tax profit or loss of discontinued operations
◦ the post-tax gain or loss on disposal - discontinued operation;
Profit or loss after tax;
Each component of other comprehensive income – by nature
Share of the other comprehensive income of associates and joint
ventures -equity method
Total comprehensive income.
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 13
14. Information to be presented in other
comprehensive income
Include (refer page 16)
changes in revaluation surplus on
property plant and equipment and
intangible assets
gains and losses arising from translating the financial
statements of a foreign operation
gains and losses on re-measuring available-for-sale
financial assets or liabilities
the effective portion of gains and losses on hedging
instruments in a cash flow hedge.
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 14
15. Statement of changes in equity
I am referring you to page 18
Total comprehensive income separately attributable to owners
of the parent and to non-controlling interests;
Effects of retrospective application or retrospective
restatement recognized during the year
Reconciliation opening and closing balances, separately
disclosing changes resulting from:
profit or loss;
each item of other comprehensive income; and
transactions with owners in their capacity as owners,
showing contributions, distributions to owners and changes
in ownership interests in subsidiaries that do not result in a
loss of control
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 15
16. Statement of changes in equity - elaboration
Profit for the year 2,624,256,1631
4,927,753,778
Other Comprehensive Income:
Items that may be reclassified
subsequently to profit or loss:
Gain on fluctuation of foreign exchange
rates 234,074,833 746,736,991
Increase in fair value of Government
Trophies 47,737,405 93,152,482
Items that will not be reclassified to
profit or loss 2
Gain on disposal of interest in joint venture 50,000,000 -
Income tax relating to components of other
comprehensive income 20 (99,543,672) -
Total Comprehensive Income for the
year 2,856,524,729 5,767,643,251
General
Reserve
Revaluation
Reserve Retained Income Total
TZS TZS TZS TZS
At 01 July 2011
50,000,000
3,803,946,130 10,434,288,090 14,288,234,220
Treasury Dividend (1,000,000,000)3
(1,000,000,000)
Profit for the year - 2,856,524,7294
2,856,524,729
Transfer to retained
earnings
(50,000,000)
- 50,000,000 -
As at 30 June 2012 - 3,803,946,130 12,340,812,819 16,144,758,949
1
Should shown separate in SCE
2
Each item of other comprehensive income should be shown in statement of changes in equity
3
Transaction with owners
4
Not correct
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 16
17. Cash flows statements
Refer page 19 of NCAA Financials
Covered under IAS 7 to be presented
separately
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 17
18. NOTES
•Continuation of IAS 1 – Financial statements presentation
•IAS 8 – Accounting policies and correction of errors
•IAS 24 – Related party disclosures
•Remember heading is NOTES and not NOTES TO….
19. The Notes shall
Present information about the basis of
preparation of the financial statements and the
specific accounting policies (Page 20 -28)
Disclosure information required by IFRSs not
disclosed anywhere refer Notes 20 (IAS 12), Note 21
(IFRS5), Note 25 (IAS37, IAS 19), Note 24 (IAS 24),
Note 33 (IAS 17)etc.
Provide information that is not presented
elsewhere in the financial statements, but relevant
for understanding of any of them –Notes 10, Note
12???, Note 13, Note 16????
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 19
20. Index to notes
General information – Page 20
Application of new and revised International Financial
Reporting Standards (IFRSs)
Significant accounting policies
Critical accounting judgements and key sources of
estimation uncertainty
Revenue
Segment information
Investment income
Other gains and losses
Finance costs
Income taxes relating to continuing operations
Discontinued operations
Assets classified as held for sale
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 20
21. Index to notes (continue)
Profit for the year from continuing operations
Earnings per share
Property, plant and equipment
Investment property
Goodwill
Other intangible assets
Subsidiaries
Investments in associates
Joint ventures
Other financial assets
Other assets
Inventories
Trade and other receivables
Finance lease receivables
Amounts due from (to) customers under construction contracts
Issued capital
Reserves
Retained earnings and dividends
Non-controlling interests
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 21
22. Index to notes (continue)
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz
Borrowings
Convertible notes
Other financial liabilities
Provisions
Other liabilities
Trade and other payables
Obligations under finance leases
Retirement benefit plans
Financial instruments
Deferred revenue
Share-based payments
Related party transactions
Business combinations
Disposal of subsidiary
Cash and cash equivalents
Non-cash transactions
Operating lease arrangements
Commitments for expenditure
Contingent liabilities and
contingent assets
Events after the reporting
period
Approval of financial
statements
22
23. Comparative Information
Enhancing the inter-period comparability of information
allowing the assessment of trends in financial information for
predictive purposes.
Details of a legal dispute whose outcome was uncertain at the
end of the immediately preceding reporting
Comparative narrative and descriptive information relevant to
Accounting policy applied retrospectively or retrospective
restatement of items or reclassifies items then present
statements of financial position as at:
the end of the current period,
the end of the previous period
the beginning of the earliest comparative period
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 23
24. Accrual basis of accounting
Prepare its financial statements, except for cash flow
information, using the accrual basis of accounting.
Recognizes items as assets, liabilities, equity, income
and expenses when they satisfy the definitions and
recognition criteria
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 24
25. Judgements
Disclosures an entity makes are:
the nature of the assumption or other estimation
uncertainty;
the sensitivity of carrying amounts to the methods,
assumptions and estimates underlying their calculation,
including the reasons for the sensitivity;
the expected resolution of an uncertainty and the range of
reasonably possible outcomes within the next financial year
in respect of the carrying amounts of the assets and liabilities
affected; and
an explanation of changes made to past assumptions
concerning those assets and liabilities, if the uncertainty
remains unresolved.
budget information or forecasts not required
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 25
26. Other disclosures
disclose the amount of dividends proposed or
declared before the financial statements were
authorized for issue but not recognized as a
distribution to owners during the period, and
the related amount per share;
the amount of any cumulative preference
dividends not recognized.
puttable financial instruments classified as
equity instruments.
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 26
27. Information not required by
IFRS
Financial review by management that describes and explains the main
features of the entity’s financial performance and financial position,
and the principal uncertainties it faces may include:
The main factors and influences determining financial performance,
including changes in the environment in which the entity operates,
the entity’s response to those changes and their effect, and the
entity’s policy for investment to maintain and enhance financial
performance, including its dividend policy;
The entity’s sources of funding and its targeted ratio of liabilities to
equity;
The entity’s resources not recognised in the statement of financial
position in accordance IFRSs.
Reports and statements such as environmental reports and value
added statements, particularly in industries in which environmental
factors are significant and when employees are regarded as an
important user group.
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 27
29. IAS 24 – Related party disclosures
This standard requires disclosure of
Relation between a parent and its subsidiaries
Key management personnel compensation in total
and each of the following categories:
Short-term employee benefits
Post-employment benefits
Other long term benefits
Termination benefits; and
Share-based payment
If any entity has related party transaction during
the period, disclose relationship, information
about transactions and outstanding balances
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 29
30. Government related entities
A reporting entity is exempt from related partly
disclosures arising from
(a) Government who own the entity
(b) Another entity that is related because of the
same Government – TANAPA, Tourist Board
etc
VA Business Assurance Services info@vabusiness.co.tz www.vabusiness.co.tz 30
32. TFRS 1- Directors report
•Directors report,
•corporate governance and social responsibility reporting
Directors’ reporting is the require of national laws i.e.
Companies Act for limited companies and Establishment Act
for government entities.
33. Introduction
Directors’ report is not a requirement of International
financial reporting standards hence it is not covered by
any IFRS. However, directors’ report is required by
Companies Act 2002 and all Establishment Act that
created a Government Agency eg NCAA Act.
To guide on directors’ report, during its 146th meeting
held on 15th October 2009, the NBAA Governing Board
has approved the issuance of Tanzania Financial
Reporting Standard (TFRS) No. 1- Directors’ Report
This standard replaces TFAS 12 on Directors’ Report that
was issued by the Board on 1stJuly
2001. The standard becomes operative for financial
statements covering accounting periods
beginning on or after 1st January 2010.Below is the
detailed Accounting Standard on the Directors’ Report
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34. Contents of directors’ report
Operating legal mandate
Company’s vision and mission
Principal activities
Composition of board members showing name,
position, age, profession, nationality,
appointment/resignation date
Corporate governance structure statement,
members of various committees of the board, to
whom they report, number of meeting held
Capital structure
Management set up/organization structure
Shareholders number and name of who hold
directorship
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35. Contents of directors’ report (Cont)
Solvency (going concern)
Results and dividend
Discussion on performance in relation to last year
performance
Employees welfare
Gender parity – number of employees classified by
gender
Related part transactions
Political and charitable donations
Corporate social responsibilities
Statement of directors’ responsibilities
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36. Other corporate reporting
Disclosures outside TFAS 1 allowed are those related to
corporate governance reporting which include:
Statement on the organization’s contribution to large
economic – projects with high employment creation,
promotion of local suppliers (MKUKUTA), Climate
Change Activities etc. Value Added Statement may
assist to show value created
Disclosure of detailed environment policy which clearly
state procedures for monitoring and evaluation
Disclose of hire policy which discourage discrimination
on sex, tribe, age and promote employees safety
Disclosure of ant bribery policy
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37. Other corporate reporting (Cont.)
Performance discussion could include
KPIs review
Five years financial statements
Charts and graphs
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38. Thank you
Questions and Answers
Interactive session
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