FAC1601 - FINANCIAL ACCOUNTING & REPORTING DUE 10TH OCTOBER 2023.

FAC1601 - FINANCIAL ACCOUNTING & REPORTING DUE 10TH OCTOBER 2023. IFRS - CORRECT ANSWER-International Financial Reporting Standards International Financial Reporting Standards - CORRECT ANSWER-A set of rules developed to make sure that financial statements are prepared consistently for companies so that users can compare the financial results and performance from the current year to prior years to the same company. Additionally, making it possible for users to compare the financial position and performance of one company with another. Profit Company - CORRECT ANSWER-A company that is incorporated for the purpose of financial gain for its shareholders. Include: state-owned companies (SOC Ltd), private companies [(Pty) Ltd], personal liability companies [Inc], and public companies [Ltd]. Purpose of Conceptual Framework - CORRECT ANSWER-a) assist the IASB in developing IFRS that is consistent concepts b) aid the prepares of financial statements to develop consistent accounting policies in the absence of a standard. c) assist all parties to understand and interpret IFRS. Objective of General Purpose Financial Reporting - CORRECT ANSWER-To provide financial information about a reporting entity to its existing and potential investors , lenders and other creditors. Financial Statements - CORRECT ANSWER-A specific form of financial reporting. They portray information about assets, liabilities, equity, income, and expenses. Based on Accrual Method of accounting. Accrual Basis Accounting - CORRECT ANSWER-reporting income when it is earned and expenses when they are incurred Qualitative Characteristics of Useful Financial Information - CORRECT