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IAS 1 (15)
FAIR PRESENTATION AND COMPLIANCE WITH IFRS
Financial statements shall present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework. The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation.
IAS 1 (27-28)
ACCRUAL BASIS OF ACCOUNTING
An entity shall prepare its financial statements, except for cash flow information using the accrual basis of accounting.
When the accrual basis of accounting is used, an entity recognizes items as assets, liabilities, equity, income and expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements in the Framework
IAS 2 (7)
DEFINITIONS
The following terms are used in this Standard with the meanings specified:
Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
IAS 2 (9)
MEASUREMENT OF REVENUE
Revenue shall be measured at the fair value of the consideration received or receivable
IAS 2(12)
When goods or services are exchanged or swapped for goods or services which are of a similar nature and value, the exchange is not regarded as a transaction which generates revenue. This is often the case with commodities like oil or milk where suppliers or swap inventories in various locations to fulfill demand on a timely basis in a particular location. When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue. The revenue is regarded as the measure at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred. When the fair value of the goods or services received cannot be measured reliably, the revenue is measured at the fair value of the goods or services given up, adjusted by the amount of any cash or cash equivalents transferred.
IAS 2
RENDERING OF SERVICES
Advertising commissions media commissions are recognized when the related advertisement or commercial appears before the public. Production commissions are recognized by reference to the stage of completion of the project.
MILLAN
SUBSCRIPTIONS TO PUBLICATIONS AND SIMILAR ITEMS
When the items involved are of similar value in each time period, revenue is recognized on a straight-line basis over the period in which the items are dispatched.
When the items vary in value from period to period, revenue is recognized on the basis of the sales value of the item covered by the subscription.
CONCEPTUAL FRAMEWORK
CHAPTER 1 (OB17)
FINANCIAL PERFORMANCE REFLECTED BY ACCRUAL ACCOUNTING
Accrual accounting depicts the effects of transactions and other events and circumstances on a reporting entitys economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts and payments occur in a different period. This is important because information about a reporting entitys economic resources and claims and changes in its economic resources and claims during a period provides a better basis for assessing the entitys past and future performance than information solely about cash receipts and payments during that period.
IAS 1 (15)
FAIR PRESENTATION AND COMPLIANCE WITH IFRS
Financial stateme
nts shall present fairly the financial position, financial performance and cash flows of
an entity. Fair presentation requires the faithful representation of the effects of transactions, other
events and conditions in accordance with the definitions and re
cognition criteria for assets, liabilities,
income and expenses set out in the Framework. The application of IFRSs, with additional disclosure
when necessary, is presumed to result in financial statements that achieve a fair presentation.
IAS 1 (27
-
28)
ACCRUAL BASIS OF ACCOUNTING
An entity shall p
repare its financial statements,
except for cash flow information using the
accrual basis
of accounting.
When the accrual basis of accounting is used, an entity recognizes items a
s assets, liabilities, equity,
income and expenses (the elements of financial statements) when they satisfy the definitions and
recognition cri
teria for those elements in the Framework
IAS 2 (7)
DEFINITIONS
The
following
terms are used in this Standard with the meanings specified:
Revenue is the gross inflow of economic benefits during the period arising in the cou
rse of th
e ordinary
activities o
f an entity when those
inflows result in increases in equity, other than increases relating to
contributions from equity participants.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transactio
n between market participants at the measurement date.
IAS 2 (9)
MEASUREMENT OF REVENUE
Revenue shall be measured at the fair value of the consideration received or receivable
IAS 2(12)
IAS 1 (15)
FAIR PRESENTATION AND COMPLIANCE WITH IFRS
Financial statements shall present fairly the financial position, financial performance and cash flows of
an entity. Fair presentation requires the faithful representation of the effects of transactions, other
events and conditions in accordance with the definitions and recognition criteria for assets, liabilities,
income and expenses set out in the Framework. The application of IFRSs, with additional disclosure
when necessary, is presumed to result in financial statements that achieve a fair presentation.
IAS 1 (27-28)
ACCRUAL BASIS OF ACCOUNTING
An entity shall prepare its financial statements, except for cash flow information using the accrual basis
of accounting.
When the accrual basis of accounting is used, an entity recognizes items as assets, liabilities, equity,
income and expenses (the elements of financial statements) when they satisfy the definitions and
recognition criteria for those elements in the Framework
IAS 2 (7)
DEFINITIONS
The following terms are used in this Standard with the meanings specified:
Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary
activities of an entity when those inflows result in increases in equity, other than increases relating to
contributions from equity participants.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
IAS 2 (9)
MEASUREMENT OF REVENUE
Revenue shall be measured at the fair value of the consideration received or receivable
IAS 2(12)