Professional Documents
Culture Documents
Conceptual Framework
For Financial Reporting
Learning objectives
After studying this topic, you should be ableto:
Explain the roles and structures of key regulatory bodies
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Organizational
structure of
IASB
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Self reading
Self reading
International Accounting
Standards Board
IASB is responsible for
• developing and issuing new international standards;
• which are known as International Financial Reporting
Standards (IFRS).
IASB consists of 15 members and their foremost
qualification is technical expertise. All members are
appointed for a terms of 5 years, renewable once.
Before a standard, exposure draft or a final IFRIC
interpretation can be published, at least 8 out of the 15
members must approve it.
All existing IASs and SICs remain in force until
amended or withdrawn in the future.
Therefore, IFRS includes IFRSs, IFRIC, IASs and SIC
Interpretation.
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Self reading
Self reading
IFRS Interpretation Committee
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Conceptual
Framework
establishes the
concepts that underlie
It is a guidance to the preparation and
financial reporting.
presentation of financial statements
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Apr 1989
Framework for the Preparation and Presentation of
History
Financial Statements was approved by the IASC Board.
Jul 1989
The Framework was published.
Apr 2001
The Framework was adopted by the IASB.
Sep 2010
The Conceptual Framework for Financial
Reporting 2010 was approved by the IASB.
Mar 2018
WWW.IFRS.ORG
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accountability
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Claims
Economic resources
Changes in economic
Changes in economic resources and claims not
resources and claims by resulting from financial
financial performance performance
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Qualitative
characteristics of
useful financial
information
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Fundamental Quality—Relevance
To be relevant,
accounting information
must be capable of
making a difference
in a decision.
Faithful representation
means that the numbers
and descriptions match
what really existed or
happened.
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Liquidity
Current liability
Current asset
Non current liability
Equity
Non current asset
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Balance as at 1/1/X6
Retrospective application
Issuance of new share
Dividend
Transfers between equity components
Balance as at 31/12/X6
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Basic elements
Elements of Financial Statements
Liability 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.
Equity The residual interest in the assets after deducting liabilities.
Recognition
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Basic assumptions
Economic entity
Company keeps its activity separate
from its owners and other business unit.
Accrual
Going concern
Transactions are recorded in the
Company to last long enough to fulfill
periods in which the events occur.
objectives and commitments.
Principles
Recognition is the
process of capturing for
inclusion in the statement of
financial position or the
statement(s) of financial
performance an item that meets
the definition of one of the
elements of financial
statements—an asset, a liability,
equity, income or expenses.
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Recognition criteria
.
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Recognition criteria
a faithful representation may be affected by the level of
measurement uncertainty or by other factors.
v
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Derecognition
Derecognition is the
removal of all or part of
a recognized asset or
liability from an entity’s
statement of financial › derecognition
› derecognition
Liabilities
position. normally occurs
normally occurs
Assets
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Measurement
Historical cost Realizable value
Assets are recorded at the amount of Assets are carried at the amount of cash
cash or cash equivalent paid or the fair or cash equivalent that could currently be
value of the consideration given to obtained by selling the asset in an orderly
acquire them. Liabilities are recorded at disposal. The liabilities are carried at their
the amount of proceeds received in settlement values being undiscounted
exchange for the debt. amounts of cash that need to be paid in
the course of business.
Current cost
Assets are carried at the amount of
cash or cash equivalent that would Present value
be paid if the asset were acquired Assets are carried at the discounted
currently. Liabilities are carried at the value of the future cash inflows that the
discounted value or cash equivalent items are expected to generate in the
that would be required to settle the debt normal course of business. Liabilities are
currently. carried at the discounted value of the
future net cash outflows required to
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Measurement
Measurement bases
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Cơ sở đo lường theo giá trị hiện hành (Current value measurement basis)
Giá hiện hành cung cấp thông tin được cập nhật để phản ánh các điều kiện tại thời điểm đo lường. Cơ sở
đo lường này bao gồm:
Giá trị hợp lý Là giá nhận được khi bán tài sản, hay phải trả khi thanh toán nợ, trong một
(fair value) giao dịch có trật tự giữa các bên tham gia thị trường tại thời điểm đo lường.
Phản ánh mong đợi hiện tại của các bên tham gia thị trường về giá trị, thời
gian và tính không chắc chắn của dòng tiền trong tương lai.
Giá trị sử dụng (value in use) – Phản ánh mong đợi hiện tại của một doanh nghiệp cụ thể về giá trị, thời
của tài sản hoặc Giá trị thực hiện gian và tính không chắc chắn của dòng tiền trong tương lai
(fulfilment value) của NPT
Giá hiện hành Là khoản Thanh toán để mua một tài sản tương tự
(current cost) Hoặc là khoản Nhận được nếu có một khoản nợ phải trả tương tự
Example (Exercise 5)
Doanh nghiệp sở hữu một tài sản cố định đã mua cách đây 4 năm với giá mua là 100.000
triệu đồng, khấu hao luỹ kế tại thời điểm hiện tại là 40.000 triệu đồng. Tài sản này có thể
bán cho một doanh nghiệp sản xuất khác với giá bán là 50.000 triệu đồng và chi phí giao
dịch 500 triệu đồng. Nếu công ty mua một tài sản mới tương đương trên thị trường để thay
thế tài sản hiện tại, chi phí mua tài sản mới là 110.000 triệu đồng. Dòng tiền ước tính thu về
từ tài sản hiện tại trong 2 năm kế tiếp là 25.000 triệu đồng/ năm và 20.000 triệu đồng mỗi
năm trong 4 năm kế tiếp nữa cho đến khi hết thời gian sử dụng của tài sản. Chi phí sử dụng
vốn bình quân là 10%.
Yêu cầu: Tính toán giá trị của tài sản hiện tại (CARRYING AMOUNT) theo các mô hình
đo lường của conceptual framework.
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Cost constraint
Cost Constraint
Companies must weigh the costs of providing the information
against the benefits that can be derived from using it.
CLASSIFICATION
Offsetting
Classification of equity
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› duplication of information in
Classification
01 Classification is applied to the unit of
account selected for an asset or liability.
Classification Offsetting
of assets and 02
Offsetting occurs when an entity recognizes
and measures both an asset and liability as
separate units of account, but groups them
liabilities into a single net amount in the statement of
financial position.
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Classification of equity
(b) components of such income and expenses if those components have different characteristics and are
identified separately.
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.
capital maintenance
Financial Capital = Net asset or equity of the entity. Physical Capital = Productive capacity of the entity
(measured as units of output per day)
Used if the main concern of the user of the financial statements
is the maintenance of the nominal value invested capital. Used if the main concern of the user of the financial
statements is the operating capacity of the entity.
Profit is the difference in money terms between the opening
and closing capital excluding any contributions from and Profit is earned only if the operating capacity at the end
distribution to owners. of the period exceeds that of the beginning of the period.
capital maintenance
Increases in the prices of Only that part of the All price changes of the
assets may not be increase in the prices of assets and liabilities are
recognized until the assets that exceeds the viewed as changes in
assets are disposed of in increase in the general the measurement of the
Increase in the an exchange transaction. level of prices is physical productive
regarded as profit. The capacity of the entity
prices rest of the increase is as capital maintenance
treated as a capital adjustments that are part
maintenance adjustment of equity and not as profit.
and, hence, as part of
equity.
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Example
Answer
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