Keywords: Conceptual Framework, Financial Reporting, IFRS Foundation, IASB, GAAP, Accounting Principles, Qualitative Characteristics, Relevance, Faithful Representation, Comparability, Verifiability, Timeliness, Understandability, Materiality, Elements of Financial Statements, Assets, Liabilities, Equity, Income, Expenses, Recognition Criteria, Measurement Bases, Historical Cost, Current Value, Fair Value, Present Value
Provides the foundation for developing consistent accounting standards and financial reporting.
- Financial Statements: Structured representation of financial position and performance
- Asset: Present economic resource controlled by entity as result of past events
- Liability: Present obligation to transfer economic resource from past events
- Equity: Residual interest in assets after deducting liabilities
- Income: Increases in economic benefits during accounting period
- Expenses: Decreases in economic benefits during accounting period
Keywords: Professional Ethics, Integrity, Objectivity, Professional Competence, Confidentiality, Professional Behavior, IESBA Code, Threats, Safeguards, Independence, Conflict of Interest, Ethical Dilemmas, Whistleblowing, Corporate Governance, Accountability, Transparency
Establishes fundamental ethical requirements for professional accountants.
- Integrity: Being straightforward and honest in professional relationships
- Objectivity: Not allowing bias, conflict of interest or undue influence
- Professional Competence: Maintaining professional knowledge and skill
- Confidentiality: Respecting confidentiality of information acquired
- Professional Behavior: Complying with laws and avoiding discreditable actions
Keywords: PPE, Tangible Assets, Depreciation, Useful Life, Residual Value, Cost Model, Revaluation Model, Carrying Amount, Component Depreciation, Derecognition, Impairment, Replacement Costs, Major Inspections, Borrowing Costs, Subsequent Costs
- Property, Plant and Equipment: Tangible items held for use in production/supply of goods/services, for rental, or for administrative purposes, expected to be used for more than one period
- Cost: Amount of cash or cash equivalents paid or fair value of other consideration given
- Carrying Amount: Amount at which asset is recognized after deducting accumulated depreciation and impairment losses
- Depreciation: Systematic allocation of depreciable amount over useful life
- Useful Life: Period over which asset is expected to be available for use by entity
Keywords: Impairment Loss, Recoverable Amount, Value in Use, Fair Value Less Costs to Sell, Cash Generating Units, CGU, Impairment Indicators, Reversal of Impairment, Goodwill Allocation, Discount Rate, External Indicators, Internal Indicators
- Impairment Loss: Amount by which carrying amount exceeds recoverable amount
- Recoverable Amount: Higher of asset's fair value less costs of disposal and its value in use
- Value in Use: Present value of future cash flows expected to be derived from asset
- Cash-Generating Unit: Smallest identifiable group of assets generating cash inflows independently
- Corporate Assets: Assets that contribute to cash flows of multiple CGUs
Keywords: Intangible Assets, Recognition Criteria, Development Costs, Research Costs, Amortization, Finite Life, Indefinite Life, Revaluation Model, Brand Names, Patents, Copyrights, Goodwill, Separability, Identifiability, Active Markets
- Intangible Asset: Identifiable non-monetary asset without physical substance
- Identifiable: Capable of being separated or arising from contractual/legal rights
- Research: Original investigation to gain new knowledge
- Development: Application of research findings to produce new products/processes
- Amortization: Systematic allocation of depreciable amount over useful life
Keywords: Government Grants, Subsidies, Non-monetary Grants, Forgivable Loans, Recognition Criteria, Performance Conditions, Capital Approach, Income Approach, Deferred Income, Repayment of Grants, Government Assistance
- Government Grants: Assistance by government in form of transfers of resources in return for past or future compliance with conditions
- Government Assistance: Action by government designed to provide economic benefit to specific entities
- Forgivable Loans: Loans where repayment is waived if certain conditions are met
- Grants Related to Assets: Grants requiring purchase/construction of long-term assets
- Grants Related to Income: Grants other than those related to assets
Keywords: Borrowing Costs, Capitalization, Qualifying Assets, Directly Attributable, General Borrowings, Capitalization Period, Suspension, Cessation, Effective Interest Rate, Specific Borrowings, Exchange Differences
- Borrowing Costs: Interest and other costs incurred in connection with borrowing funds
- Qualifying Asset: Asset that necessarily takes substantial time to get ready for intended use/sale
- Capitalization Rate: Weighted average of borrowing costs applicable to outstanding borrowings
- Commencement Date: When expenditures for asset and borrowing costs are being incurred
- Suspension Period: Extended periods during which active development is interrupted
Keywords: Investment Property, Rental Income, Capital Appreciation, Fair Value Model, Cost Model, Mixed-Use Property, Transfers, Valuation, Operating Leases, Disclosure Requirements
- Investment Property: Property held to earn rentals or for capital appreciation or both
- Owner-Occupied Property: Property held for use in production/supply of goods/services or for administrative purposes
- Fair Value: Price that would be received to sell asset in orderly transaction between market participants
- Cost Model: Asset carried at cost less accumulated depreciation and impairment
- Inseparability Criterion: When portions cannot be sold/leased separately
Keywords: Held for Sale, Discontinued Operations, Disposal Groups, Measurement, Presentation, Abandonment, Classification Criteria, One Year Rule, Highly Probable, Fair Value Less Costs to Sell, Depreciation Suspension
- Non-current Asset Held for Sale: Asset whose carrying amount will be recovered principally through sale rather than continuing use
- Disposal Group: Group of assets to be disposed of together in single transaction and liabilities directly associated
- Highly Probable: Significantly more likely than probable (75% threshold)
- Available for Immediate Sale: Asset must be in condition for immediate sale in present state
- Measurement Period: One year from classification date unless exceptions apply
Keywords: Biological Assets, Agricultural Produce, Harvest, Fair Value Model, Point of Harvest, Government Grants, Unconditional Grants, Bearer Plants, Transformation Process
- Biological Asset: Living animal or plant
- Agricultural Produce: Harvested product of biological assets
- Harvest: Detachment of produce from biological asset or cessation of life process
- Fair Value: Price in orderly transaction between market participants
- Point of Sale Costs: Incremental costs directly attributable to disposal
Keywords: Inventories, FIFO, Weighted Average, Net Realizable Value, NRV, Cost Formulas, Raw Materials, Work in Progress, Finished Goods, Purchase Costs, Conversion Costs, Abnormal Waste, Selling Costs
- Inventories: Assets held for sale in ordinary course of business, in production for such sale, or materials/supplies to be consumed in production process
- Net Realizable Value: Estimated selling price less costs of completion and disposal
- Cost: All costs of purchase, conversion, and other costs to bring inventories to present location/condition
- FIFO: First-in, first-out cost formula
- Weighted Average Cost: Cost formula based on average cost of items
Keywords: Exploration Costs, Evaluation Costs, Mineral Resources, Successful Efforts Method, Full Cost Method, Impairment Indicators, Cash Generating Units, Accounting Policies
- Exploration and Evaluation: Search for mineral resources and determination of technical feasibility/commercial viability
- Exploration and Evaluation Assets: Expenditures recognized as assets in exploration phase
- Cash-Generating Unit: Smallest identifiable group of assets generating cash inflows independently
- Area of Interest: Geological area where presence of mineral deposits is considered possible
- Successful Efforts Method: Capitalizing only successful exploration efforts
Keywords: Provisions, Contingent Liabilities, Contingent Assets, Obligating Event, Present Obligation, Probable Outflow, Reliable Estimate, Restructuring Provisions, Onerous Contracts, Legal Constructive Obligations, Warranties
- Provision: Liability of uncertain timing or amount
- Contingent Liability: Possible obligation or present obligation not recognized
- Contingent Asset: Possible asset arising from past events
- Obligating Event: Event creating legal/constructive obligation
- Best Estimate: Most likely outcome or expected value
Keywords: Revenue Recognition, Performance Obligations, Contract Assets, Contract Liabilities, Variable Consideration, Significant Financing Component, Principal vs Agent, Time Value of Money, Satisfied Over Time, Point in Time, Transaction Price, Standalone Selling Price
- Revenue: Income from ordinary activities
- Contract: Agreement creating enforceable rights/obligations
- Performance Obligation: Promise to transfer distinct good/service
- Transaction Price: Amount expected in exchange for goods/services
- Variable Consideration: Price contingent on future events
Keywords: Leases, Right-of-Use Assets, Lease Liabilities, Short-term Leases, Low-value Leases, Lease Term, Discount Rate, Variable Lease Payments, Lease Modifications, Subleases, Sale and Leaseback
- Lease: Contract conveying right to control asset for period in exchange for consideration
- Right-of-Use Asset: Lessee's right to use underlying asset
- Lease Liability: Present value of lease payments
- Short-term Lease: Lease term ≤12 months with no purchase option
- Low-value Asset: Underlying asset of low value when new
Keywords: Adjusting Events, Non-adjusting Events, Declaration of Dividends, Going Concern, Post-balance Sheet Events, Authorized for Issue, Materiality, Disclosures
- Adjusting Event: Provides evidence of conditions existing at end of reporting period
- Non-adjusting Event: Indicates conditions arising after reporting period
- Declared After Reporting Period: Dividends declared after period but before authorization
- Going Concern: Events affecting entity's ability to continue as going concern
Keywords: Accounting Policies, Changes in Estimates, Prior Period Errors, Retrospective Application, Impracticability, Material Errors, Voluntary Changes, Hierarchy of Guidance, Prudence, Accrual Basis
- Accounting Policies: Specific principles/bases/rules applied in preparing financial statements
- Change in Accounting Estimate: Adjustment of carrying amount due to new information
- Prior Period Error: Omissions/misstatements from failure to use reliable information
- Retrospective Application: Applying new policy to prior periods as if always used
- Impracticable: Cannot apply after making every reasonable effort
Keywords: Functional Currency, Presentation Currency, Foreign Operations, Exchange Differences, Monetary Items, Non-monetary Items, Translation Methods, Closing Rate, Temporal Method, Hyperinflationary Economies
- Functional Currency: Currency of primary economic environment
- Presentation Currency: Currency in which financial statements are presented
- Exchange Difference: Difference from translating at different exchange rates
- Foreign Operation: Subsidiary/associate/joint arrangement whose activities are based in foreign country
- Monetary Items: Units of currency held/assets/liabilities to be received/paid
Keywords: Operating Segments, Reportable Segments, Segment Assets, Segment Liabilities, Chief Operating Decision Maker, CODM, Entity-wide Disclosures, Geographic Information, Major Customers, Revenue Tests, Profit Tests
- Operating Segment: Component engaging in business activities with discrete financial information regularly reviewed by CODM
- Chief Operating Decision Maker (CODM): Person/group allocating resources and assessing performance
- Reportable Segment: Operating segment meeting quantitative thresholds
- Segment Revenue: Revenue from external customers and intersegment transactions
- Segment Profit/Loss: Measure reported to CODM
Keywords: Related Parties, Key Management Personnel, Close Family Members, Post-employment Benefits, Control, Joint Control, Significant Influence, Compensation, Transactions, Outstanding Balances
- Related Party: Person/entity related to reporting entity including:
- Parent/subsidiaries
- Associates/joint ventures
- Key management personnel
- Close family members
- Key Management Personnel: Persons having authority for planning/directing entity's activities
- Close Family Members: Family members who may influence/be influenced by key personnel
Keywords: Share Options, Equity-settled, Cash-settled, Vesting Conditions, Market Conditions, Non-market Conditions, Fair Value, Intrinsic Value, Graded Vesting, Forfeitures, Modifications
- Share-based Payment: Transaction where goods/services are paid for by issuing equity instruments or cash based on equity instruments
- Equity-settled: Transaction settled by issuing equity instruments
- Cash-settled: Transaction settled by paying cash based on equity instruments
- Vesting Conditions: Conditions determining whether employee becomes entitled to payment
- Grant Date: When entity and counterparty agree to arrangement
Keywords: Basic EPS, Diluted EPS, Potential Ordinary Shares, Options, Warrants, Convertibles, Treasury Stock Method, If-converted Method, Anti-dilution, Weighted Average Shares, Bonus Issues, Rights Issues
- Basic EPS: Profit/loss attributable to ordinary shareholders ÷ weighted average shares
- Diluted EPS: Adjusts basic EPS for effects of dilutive potential shares
- Potential Ordinary Shares: Financial instruments that may entitle holder to ordinary shares
- Antidilutive: Increases EPS or reduces loss per share
- Weighted Average Shares: Number outstanding during period weighted by time
Keywords: Defined Benefit Plans, Defined Contribution Plans, Short-term Benefits, Post-employment Benefits, Other Long-term Benefits, Termination Benefits, Actuarial Gains/Losses, Projected Unit Credit Method, Net Interest, Past Service Cost, Settlement, Curtailment
- Short-term Benefits: Benefits expected to be settled within 12 months
- Post-employment Benefits: Benefits payable after employment ends
- Defined Contribution Plans: Plans where fixed contributions are made with no further obligation
- Defined Benefit Plans: Plans specifying benefits to be paid
- Actuarial Gains/Losses: Changes in present value due to experience adjustments or changes in assumptions
Keywords: Deferred Tax, Current Tax, Temporary Differences, Tax Base, Taxable Temporary Differences, Deductible Temporary Differences, Tax Rates, Tax Losses, Tax Credits, Recognition Exceptions, Business Combinations
- Tax Base: Amount attributed to asset/liability for tax purposes
- Temporary Difference: Difference between carrying amount and tax base
- Deferred Tax Liability: Amount of income taxes payable in future periods
- Deferred Tax Asset: Amount of income taxes recoverable in future periods
- Taxable Temporary Difference: Results in taxable amounts in future
Keywords: Fair Value Hierarchy, Level 1 Inputs, Level 2 Inputs, Level 3 Inputs, Valuation Techniques, Market Approach, Income Approach, Cost Approach, Highest and Best Use, Principal Market, Most Advantageous Market, Non-performance Risk
- Fair Value: Price received to sell asset/paid to transfer liability in orderly transaction
- Highest and Best Use: Use maximizing value for market participants
- Valuation Techniques: Market/income/cost approaches to measure fair value
- Level 1 Inputs: Quoted prices in active markets
- Level 2 Inputs: Observable inputs other than quoted prices
Keywords: Classification, Measurement, Amortized Cost, FVTPL, FVOCI, SPPI Test, Business Model Test, Expected Credit Losses, ECL Model, Hedge Accounting, Fair Value Option, Derecognition, Modifications
- Financial Asset: Contractual right to receive cash/other financial asset
- Financial Liability: Contractual obligation to deliver cash/other financial asset
- Amortized Cost: Initial recognition amount adjusted for principal repayments and interest
- Fair Value Through OCI: Measurement category with changes recognized in OCI
- Expected Credit Losses: Probability-weighted estimate of credit losses
Keywords: Equity Method, Significant Influence, Potential Voting Rights, Impairment Losses, Share of Profit or Loss, Other Comprehensive Income, Transactions Between Investors, Separate Financial Statements
- Associate: Entity over which investor has significant influence (20-50% voting power)
- Significant Influence: Power to participate in financial/operating policy decisions
- Equity Method: Investment initially recognized at cost and adjusted for post-acquisition changes
- Potential Voting Rights: Rights that may become exercisable
Keywords: Joint Operations, Joint Ventures, Contractual Arrangement, Separate Vehicles, Direct Rights, Proportionate Consolidation, Parties to Joint Arrangement
- Joint Arrangement: Contractually agreed sharing of control by two+ parties
- Joint Control: Contractually agreed sharing requiring unanimous consent
- Joint Operation: Joint arrangement giving rights to assets/obligations for liabilities
- Joint Venture: Joint arrangement establishing separate entity
Keywords: Business Combinations, Goodwill, Non-controlling Interests, Acquisition Method, Fair Value, Contingent Consideration, Bargain Purchases, Step Acquisitions, Control, Power, Variable Returns, Link Between Power and Returns, De facto Control, Potential Voting Rights
- Business Combination: Transaction bringing separate entities under common control
- Acquirer: Entity obtaining control of acquiree
- Goodwill: Future economic benefits from assets not individually identified
- Non-controlling Interest: Equity in subsidiary not attributable to parent
- Control: Power over investee, exposure to variable returns, ability to affect returns
Keywords: Sustainability Reporting, Climate-related Disclosures, Governance, Strategy, Risk Management, Metrics Targets, Small and Medium Entities, Simplified Standards, Reduced Disclosures, Cost-Benefit Considerations
- IFRS for SMEs: Simplified standard for small/medium entities without public accountability
- Public Accountability: Entities with debt/equity traded in public market or holding assets in fiduciary capacity
- Sustainability Standards: IFRS S1 (general requirements) and S2 (climate-related disclosures)
Keywords: Financial Statement Presentation, Aggregation, Disaggregation, Operating Categories, Investing Categories, Financing Categories, Income Statement Structure, Management Performance Measure, MPM, Unusual Items, Transparency, Comparability
- Operating Profit: Income from principal revenue-generating activities
- Investing Income/Expenses: From assets generating returns independently
- Financing Income/Expenses: From financing activities and treasury operations
Keywords: Subsidiaries, Joint Arrangements, Associates, Structured Entities, Significant Restrictions, Nature of Risks, Consolidated Financial Statements, Summarized Financial Information
- Structured Entity: Entity designed so voting rights are not dominant factor in control
- Unconsolidated Structured Entity: Structured entity not consolidated by reporting entity
Keywords: Reduced Disclosure Requirements, Eligible Subsidiaries, Public Accountability, Consolidated Financial Statements, Parent Company Disclosures, Simplified Reporting
- Subsidiary without Public Accountability: Subsidiary not trading securities in public market and not holding assets in fiduciary capacity
- Reduced Disclosure Framework: Permitted omissions from full IFRS requirements