SUBEJCT: FINANCIAL REPORTING

CODE: ACG09102
PROGRAMME: MAF AND MA 2022/2023:

ASSIGNMENTS TO ARUSHA (FULL TIME) AND ALL BLENDED MODEL STUDENTS

Question One
The recognition criteria in the 2010 Conceptual Framework stated that a flow of economic benefits must
be probable before an element can be recognised in the financial statements. However, IFRS and IAS
Standards were criticized for applying this probability criterion inconsistently. The 2018 Conceptual
Framework addressed these concerns.
Required:
Explain how the probability criterion has been inconsistently applied across accounting standards.
Illustrate your answer with reference to the measurement of assets held for sale, provisions, and
contingent consideration transferred in a business combination. Your answer should discuss the Board’s
revised recognition criteria in the 2018 Conceptual Framework.
Question Two
Related party relationships are a particularly key concern when preparing financial statements for group
entities. The objective of IAS 24 Related Party Disclosures is to ensure that financial statements contain
the necessary disclosures to make users aware of the possibility that financial statements may have been
affected by the existence of related parties
Required:
Describe the main circumstances that give rise to related parties and explain why the disclosure of related
party relationships and transaction is important

Question Three
Entities are investing more time and money in implementing sustainable development practices. A key
sustainable development goal set by many entities is to minimise the impact of business operations on the
environment. Margret Limited is considering preparing extensive disclosures about its sustainable
development goals, including its environmental impacts

Required:
Discuss recent developments in the area of sustainability reporting and the potential benefits that might
arise when an entity discloses its impact on the environment to its stakeholders

CPA DANIEL SLAWE