- •Contents
- •Introduction
- •1. The development and implementation of ifrs
- •1. Read the article and discuss
- •1) What is Accounting? Its Definition and Actual Meaning
- •2) Accounting Definition
- •3) Financial Accounting Basics
- •4) Brief ifrs Glossary
- •2. Complete the following sentences
- •3. Use «Debit» or «Credit» to complete the table below
- •4. Choose the correct answer in the table below
- •5. For each of the transactions in items 1 through 12, indicate the two (or more) effects on the accounting equation of the business or company.
- •6. Read the article and discuss
- •Is Accounting a Good Career Choice?
- •And It's an Excellent Choice.
- •Stability
- •Compensation
- •Diversity
- •7. Choose the correct answer
- •2. The Framework and the first application of ifrs
- •1. Fill in the gaps with a suitable word from the box
- •2. Use «Debit» or «Credit» to complete the table below
- •3. Sample Chart of Accounts For a Large Corporation
- •4. Match these words with their meanings
- •Types of accounts
- •5. Complete the following sentences
- •6. Complete the following sentences
- •1) Accounting Principles
- •2) Elements of Financial Statements
- •3) Financial Statements
- •4) Income Statement
- •5) Balance Sheet
- •7. Match these words with their meanings
- •Other Characteristics of Accounting Information
- •1. Reliable, Verifiable, and Objective
- •2. Consistency
- •3. Comparability
- •3. Property, plan, equipment and investment property
- •1. Read the article and discuss What is the difference between amortization and depreciation?
- •31 March 2009
- •31 March 2010
- •31 March 2011
- •Depreciation
- •Example 6
- •Accounting Entry
- •Methods of Depreciation
- •Straight Line Depreciation Method
- •Example 7
- •Reducing Balance Depreciation Method
- •Example 8
- •Units of Production Depreciation Method
- •Example 9
- •Example - Units of Usage (Activity) Depreciation
- •Considerations - Advantages and Disadvantages
- •Disposal of Fixed Assets
- •Example 10
- •4 Intangible assets
- •1. Read the article and discuss
- •2. Choose the correct answer “True” or “False” Depreciation
- •3. Choose the correct answer
- •5. Inventories
- •1. Read the article and discuss
- •1) Inventory and Cost of Goods Sold
- •Value of work in progress:
- •Value of finished goods:
- •2) Methods of calculating inventory cost
- •First In First Out (fifo)
- •Example 4
- •Last In First Out (lifo)
- •Example 5
- •Average Cost Method (avco)
- •Example 6
- •Actual Unit Cost Method
- •Accounting for Inventory
- •3) Perpetual vs Periodic Inventory System
- •Differences Between Perpetual and Periodic System
- •2. Complete the following sentences
- •3. Choose the correct answer
- •6. Biological assetS
- •6) Is the growing of plants to be used in the production of drugs an activity within the scope of ias 41?
- •7) Is the produce or harvest from a biological asset another biological asset?
- •8) Is land related to agricultural activity a biological asset in terms of ias 41?
- •9) In an integrated business, are all the activities treated as being in the scope of ias 41?
- •2. Complete the following table
- •3. Complete the following table
- •7. Cash and cash equivalents
- •1. Read the article and discuss
- •1) What is the difference between the direct method and the indirect method for the statement of cash flows?
- •2) What is the difference between net cash flow and net income?
- •3) What is the difference between cash flow and free cash flow?
- •4) How can a company have a profit but not have cash?
- •2. Complete the following sentences
- •4. For items 1 – 12 indicate whether they will have a positive or negative effect on cash.
- •5. Choose the correct answer
- •6. Use «Increases» or «Decreases» to complete the table below
- •7. Read the article and discuss
- •Cash Payments
- •8. Accounts Receivable and Revenues
- •1. Read the article and discuss What is accounts receivable?
- •Accounting for Receivables
- •Sales Tax
- •Example
- •Allowance Method for Reporting Credit Losses
- •Writing Off an Account under the Allowance Method
- •Bad Debts Expense as a Percent of Sales
- •Difference between Expense and Allowance
- •Pledging or Selling Accounts Receivable
- •2. Complete the following sentences
- •3. Choose the correct answer
- •4. Use the following information for questions 1-5:
- •4. Read the article and discuss What are the differences among accounting revenue, gain, and net income?
- •2. Example of revenue, income, gross profit, profit, net income, and gain
- •9. Stockholders' Equity
- •1. Read the article and discuss
- •1) What Is a Corporation?
- •2) What is stock?
- •3) What are the stockholders’ equity accounts?
- •4) Treasury Stock — Cost Method
- •Example
- •5) Treasury Stock — Par Value Method
- •Example
- •6) What is retained earnings?
- •Example
- •7) Does a dividend reduce profit?
- •8) What is the difference between stocks and bonds?
- •9) Does the income statement explain the change in the equity section of a balance sheet?
- •10) What is preferred stock?
- •11) Why is there a large difference between share value and stockholders’ equity?
- •Issuance of No Par Stock Example
- •12) Issuance of Shares for Non-Cash Items
- •Example
- •13) Lump-Sum Stock Issuance
- •Example
- •14) Stock Dividends
- •Small Stock Dividend
- •Large Stock Dividend
- •Example
- •Stock Splits
- •Example
- •15) Accounting For Stockholders' Equity
- •16) Paid-in Capital or Contributed Capital
- •17) Retained Earnings
- •18) Treasury Stock
- •19) Accumulated Other Comprehensive Income
- •20) Stock Splits and Stock Dividends
- •Cash Dividends on Common Stock
- •21) Preferred Stock
- •22) Par Value of Preferred Stock
- •23) Issuing Preferred Stock
- •24) Features Offered in Preferred Stock
- •Nonparticipating vs. Participating
- •Cumulative vs. Noncumulative
- •Callable
- •Convertible
- •Combination of Features
- •25) Entries to the Retained Earnings Account
- •26) Prior Period Adjustments
- •27) Book Value
- •28) Preferred Stock's Book Value
- •29) Common Stock's Book Value
- •30) Earnings Available for Common Stock
- •31) Weighted-Average Number of Shares of Common Stock
- •32) Earnings per Share of Common Stock
- •33) Other
- •2. Complete the following sentences
- •10. Liabilities and employee benefits
- •1. Read the article and discuss
- •1) Defined Contribution Plan
- •Accounting for a defined contribution plan
- •Example
- •2) Defined Benefit Plan
- •Example
- •3) Net pension asset/liability
- •Example
- •4) Pension expense
- •Projected Benefit Obligation
- •Example
- •Plan Assets
- •Example
- •Pension Expense
- •Pension expense under defined contribution plan
- •Example
- •Pension expense under defined benefit plan
- •5) Funded Status
- •Example
- •Suggested Reading
- •International Financial Reporting Standards
- •International Accounting Standards
- •Ifric Interpretations
- •Sic Interpretations
- •Other pronouncements
- •Облік за міжнародними стандартами (іноземною мовою)
- •54020, М. Миколаїв, вул. Паризької Комуни, 9
МІНІСТЕРСТВО АГРАРНОЇ ПОЛІТИКИ ТА ПРОДОВОЛЬСТВА УКРАЇНИ
МИКОЛАЇВСЬКИЙ НАЦІОНАЛЬНИЙ АГРАРНИЙ УНІВЕРСИТЕТ
Навчально-науковий інститут економіки та управління
Обліково-фінансовий факультет
Кафедра бухгалтерського обліку
Облік за міжнародними стандартами
(іноземною мовою)
Методичні рекомендації
для виконання практичних завдань студентами денної форми навчання спеціальності 8.03050901 «Облік і аудит»
МИКОЛАЇВ
2014
УДК 657.1:006
ББК 65.052.201.1ц(0)
О ‑ 16
Друкується за рішенням науково-методичної комісії обліково-фінансового факультету Миколаївського національного аграрного університету від 09.04.2014 р., протокол № 8.
Укладач:
О. І. Лугова – |
асистент кафедри бухгалтерського обліку, Миколаївський національний аграрний університет. |
Рецензенти:
Н. М. Сіренко |
‑ д-р екон. наук, професор, завідувач кафедри фінансів і кредиту, Миколаївський національний аграрний університет. |
О. В. Погорєлова |
‑ канд. екон. наук, професор, завідувач кафедри «Облік і економічний аналіз», Національний університет кораблебудування імені адмірала Макарова. |
© Миколаївський національний аграрний
університет, 2014
Contents
Introduction…………………………………………………………………… |
4 |
1. The development and implementation of IFRS…………….……………… |
5 |
2. The Framework and the first application of IFRS………….……………… |
18 |
3. Property, plan, equipment and investment property………………..……… |
28 |
4. Intangible assets…….……………………………………………………… |
39 |
5. Inventories…….…………………………………………………………… |
43 |
6. Biological assets…….……………………………………………………… |
52 |
7. Cash and cash equivalents…….…………………………………………… |
56 |
8. Accounts Receivable and Revenues…….……………………….………… |
61 |
9. Stockholders' Equity…….…………………………………………..……… |
69 |
10. Liabilities and employee benefits…………………………………..……... |
97 |
Suggested Reading ……….…………………………………………………... |
103 |
Introduction
IFRS stands for International Financial Reporting Standards and it is a set of principles and rules for reporting various transactions and items in the financial statements.
Just like United States have their US GAAP, Canada has its Canadian GAAP, United Kingdom has its UK GAAP etc, the WORLD will have its world GAAP that is under construction right now. But it’s not called “world GAAP”—it is called IFRS.
Before some time, IFRS was called IAS (International Accounting Standards). Indeed, the first standards carried the name starting with “IAS”, e.g. IAS 1—Presentation of Financial Statements. Exactly 41 standards started with IAS. But then, IASs were renamed to IFRS. After renaming and rebranding the titles of new standards start with IFRS.
Today, everything in the world comes closer than ever before. Things are harmonizing and people learn to think and act global.
And indeed, you can see that in every step you make—you can shop the same items anywhere in the world, you can get the same food in McDonalds anywhere in the world, you can even fly anywhere in the world in less than 24 hours.
Accounting and financial reporting are no exception. This is where IFRS has its own spot—it will serve as unified set of principles for financial reporting anywhere in the world.
In today’s ever globalizing world, the key concept is COMPARABILITY.
Just imagine yourself as the owner of multinational holding who wants to review financial results of your companies in different countries. But—every country uses different accounting rules! For example, revenues are reported on accrual basis in 1 country, and on cash basis in another country. How can you say which of your companies has better sales if those figures are incomparable?
Or even if you are small investor playing on the stock exchange and you (hopefully) look to financial statements of your prospect investment before buying. How can you read those statements if everybody reports differently?
So you get the picture. IFRS gives us united global set of accounting and reporting rules, so that you understand financial statements from whatever country. And not only this—if your company wants access to international capital or to stock exchange, it must present its financial statements in compliance with IFRS.
IFRSs are designed with the general purpose financial statements of profit-orientated entities in mind. IFRSs may, however, also be useful for non-profit orientated entities. General purpose financial statements give information about financial performance, position and cash flow that is useful for making economic decisions by a range of users, including shareholders, creditors, employees and the general public.
The world has been constantly moving to the single set of global accounting rules. There is a strong ambition to adopt IFRS as a unified set of financial reporting standards all over the planet by 2015.