1.

The Conceptual Framework is an element in the hierarchy of IFRS accounting

that management must - in the absence of a specific IFRS requirement -
apply in developing an accounting policy that results in information that is
useful
2. The income statement contains accrued revenues and accrued expenses
3. Companies that use IFRS can choose their balance sheet presentation as
long as they present non-current and current assets, non-current and current
liabilities, and equity
4. The objective of general purpose financial reporting is to provide financial
information about the reporting entity that is useful to existing and potential
investors, lenders and other creditors in making decisions about providing
resources to the entity
5. In the income statement expenses can be classified by nature or by function
6. (Total) Comprehensive income corresponds to Net income plus other
comprehensive income
7. Dividend paid by the parent company can be found in The statement of
changes in equity
8. Consolidated financial statements represent the financial situation of
economic entities
9. Companies under significant influence by the parent company are part of the
scope of consolidation
10. Non-controlling interest in the consolidated balance sheet represent equity
provided by shareholders (other than parent company shareholders) to
subsidiaries that the parent company does not own for 100%
11. Goodwill cannot be amortized but an impairment test has to be performed
every year
12. A negative goodwill is recognized as a profit in the income statement of the
year of acquisition

13. under IFRS, GOODWILL must not be amortized but must be written down if
necessary

14. acquisition price - fair value of net assets = goodwill

15. Preferred Shares Issued by the company are classified as equity, given that
they are called shares

16. A financial instrument that does not contain any obligation to reimburse and
for ongoing compensation is classified as equity

17. The classification of a financial instrument as debt or equity influences theway

the ongoing compensation (interest, dividend) is accounted for

18. When accounting for issued compound financial instruments they must be
split into equity and debt part at issuance
19. The deferral of profitable investments to future years improves the current
year EVA. However, it will not maximize firm value.

20. The interest expense related to an issued bond classified as measured at

amortized cost corresponds to the effective interest rate of the bond multiplied
with the book value of the bond at the beginning of the period for which
interest is calculated

21. Managers only focused on EVA maximization could be tempted to reduce

current year depreciation expenses, even knowing that this accounting
practice would reduce firm value.

22. Primary users of general purpose financial reporting are existing and potential
investors, lenders and other creditors.

23. Non-controlling interest is essentially the portion of equity (net assets) interest
in a subsidiary that is not attributable to the parent company

24. The classification of a financial instrument as debt or equity influences the

way the transaction cost for the issuance of the instrument (legal fees, taxes,
banking fees) is accounted for

25. Operating expenses can be disclosed either by nature or by function in the

statement of comprehensive income

26. Internally generated brand names, publishing titles and customer lists cannot
be recognised as intangible assets even if they are legally protected.