WorldatWork T7 - International Financial Reporting Standards for Compensation Professionals Exam

Provide information that is useful for decision making

Enable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements

Enhance and organization’s financial consistency over time as Board members change

To classify an organization’s stakeholders as either internal or external information users

Going concern

Monetary unit

Periodicity

Economic entity

The residual interest in the assets of the entity after deducting all its liabilities

A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants

Complete

Comparability

Relevance

Neutral

Total cost

Current debt

Total expenses

Total liabilities

Neither the recognition of revenue nor the recording of expense necessarily involves the receipt or payment of cash

It rests on a primary guiding principle, which is recognition

The recognition of revenue involves the receipt or payment of cash, while the recording of expense does not

It entails recording income or expenditure only when money comes into or leaves the company

Investing activities

Retained earnings

Expenses

Net income

Full disclosure

Expense recognition

Going concern

Constraints

Comparability

Relevance

Faithful representation

Verifiability

Operating expenses

Net income

Total income

Current assets