Test Singh
asked
Discuss the advantages and disadvantages of historical cost accounting.
0
0
Answer Now
Comment
Report
1
Answers
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
puru_test
answered
| A | THE CONCEPTUAL AND REGULATORY | e) | Discuss whether the use of current value |
| FRAMEWORK FOR FINANCIAL REPORTING | accounting overcomes the problems of | ||
| historical cost accounting. | |||
| 1. | The need for a conceptual framework and the | ||
| characteristics of useful information | f) | Describe the concept of financial and physical | |
| capital maintenance and how this affects the | |||
| a) | Describe what is meant by a conceptual framework for financial reporting. | determination of profits. | |
| 3. | Regulatory framework | ||
| b) | Discuss whether a conceptual framework is | ||
| necessary and what an alternative system | a) | Explain why a regulatory framework is needed | |
| might be. | including the advantages and disadvantages of | ||
| IFRS over a national regulatory framework. | |||
| c) | Discuss what is meant by relevance and | ||
| faithful representation and describe the | b) | Explain why accounting standards on their own | |
| qualities that enhance these characteristics. | are not a complete regulatory framework. | ||
| d) | Discuss whether faithful representation | c) | Distinguish between a principles based and a |
| constitutes more than compliance with | rules based framework and discuss whether | ||
| accounting standards. | they can be complementary. | ||
| e) | Discuss what is meant by understandability | d) | Describe the IASB’s Standard setting process |
| and verifiability in relation to the provision of | including revisions to and interpretations of | ||
| financial information. | Standards. | ||
| f) | Discuss the importance of comparability and | e) | Explain the relationship of national standard |
| timeliness to users of financial statements. | setters to the IASB in respect of the standard | ||
| setting process. | |||
| g) | Discuss the principle of comparability in | ||
| accounting for changes in accounting | 4. | The concepts and principles of groups and | |
| policies. | consolidated financial statements | ||
| 2. | Recognition and measurement | a) | Describe the concept of a group as a single |
| economic unit. | |||
| a) | Define what is meant by ‘recognition’ in | ||
| financial statements and discuss the | b) | Explain and apply the definition of a subsidiary | |
| recognition criteria. | within relevant accounting standards. | ||
| b) | Apply the recognition criteria to: | c) | Using accounting standards and other |
| i) assets and liabilities. | regulation, identify and outline the | ||
| ii) income and expenses. | circumstances in which a group is required to | ||
| prepare consolidated financial statements. | |||
| c) | Explain and compute amounts using the | ||
| following measures : | d) | Describe the circumstances when a group may | |
| i) historical cost | claim exemption from the preparation of | ||
| ii) current cost | consolidated financial statements. | ||
| iii) net realisable value | |||
| iv) present value of future cash flows | e) | Explain why directors may not wish to | |
| v) fair value | consolidate a subsidiary and when this is | ||
| permitted by accounting standards and other | |||
| applicable regulation. |
