IFRS Framework and IFRS 18: Key Financial Reporting Updates
Framework Overview and Key Concepts
IASB’s Role and IFRS Application
- Help IASB:
- Development and review of IFRSs.
- Promote harmonization.
- Auditor compliance.
- Support IFRS application.
Fundamental Qualitative Characteristics
Recognition Criteria: Information is recognized if it provides relevant information and a faithful representation (free from error, complete, and neutral).
Enhancing Qualitative Characteristics
- Comparability: Allows users to identify and understand similarities and differences among items.
Financial Asset and Liability Classification Standards
Understanding Current Assets and Liabilities
Current Asset Classification Criteria
An asset is classified as current when it satisfies any of the following criteria:
- It is expected to be realized, or intended for sale or consumption, during the entity’s normal operating cycle.
- It is held primarily for trading purposes.
- It is expected to be realized within twelve months from the balance sheet date.
- It is cash or a cash equivalent.
Defining the Normal Operating Cycle
The normal operating cycle of an entity
Read MoreFinancial Statement Fundamentals: Assets, Liabilities, and Equity
Understanding Core Financial Statement Elements
Assets: Definition and Classification
An Asset is an economic resource that has the potential to produce economic benefits. These benefits could include:
- Receiving contractual cash flows.
- Exchanging it for another resource.
- Using it to produce cash inflows or outflows.
- Using it to produce goods or services.
- Selling it or extinguishing it.
An asset is controlled by the entity, meaning the entity has the present ability to direct the use of the resource and
Read MoreNew Zealand Financial Reporting Standards & Accounting Principles
Financial Accounting & External Reporting Environment
- Financial Accounting: A process involving collecting and processing financial information to meet decision-making needs of external parties. It is subject to many regulations, unlike management accounting which focuses on internal users and is largely unregulated.
- General Purpose Financial Reports (GPFR) / Statements (GPFS): A report that complies with the New Zealand Framework and accounting standards, designed to meet the needs of external
Change Management and Organizational Development
Change
Framework Conditions:
- Jumps in innovation cycles
- Shortening of resource time and money
- Key driver of change: the market
Managing Complexity:
- Operations: Reduced processing time, costs, manual work, and errors
- Customers: Faster, standardized customer service
- Information Technology: Lower development costs and fewer non-standard requirements
- Finance: Better understanding of probability and more predictability
- Marketing & Product Development: Faster time-to-market and lower costs
- Sales: Increased sales,
Mastering Change: Frameworks, Management, and Strategies
Change
Framework Conditions:
- Jumps in Innovation cycles
- Shortening of resources (time & money)
- Key driver of change: The market
Managing Complexity:
- Operations: Reduced processing time, costs, manual work & errors
- Customers: Faster, standardized customer service
- Information Technology: Lower development costs and fewer non-standard requirements
- Finance: Better understanding of probability and more predictability
- Marketing & Product Development: Faster time-to-market and lower costs
- Sales: Increased