Term
| the conversion of an item or service into cash or a claim to cash |
|
Definition
|
|
Term
| Under US GAAP, the criteria for recognizing an element of financial reporting are that...(3) |
|
Definition
-the item conforms to the definition of an element of financial reporting
-the item is capable of being measured in monetary terms
-the item is relevant and it is faithfully represented. |
|
|
Term
| The criteria for recognizing an element of financial reporting under IFRS are...(2) |
|
Definition
| probability of occurrence and reasonable measurement |
|
|
Term
| Under the _____ _____ maintenance concept, gains and losses are recognized only when assets are disposed of or liabilities are settled |
|
Definition
| Physical Capital Maintenance Concept |
|
|
Term
| Which approach is generally used in calculating currently reported net income? |
|
Definition
| The physical capital maintenance concept |
|
|
Term
| Which approach is generally used in calculating comprehensive income? |
|
Definition
| Financial Capital Approach |
|
|
Term
| Does IFRS allow for recovery of previously recorded inventory impairment losses? |
|
Definition
| Yes, but only to the extent of the previously recorded loss. |
|
|
Term
| To meet the objectives of financial reporting, the information must be useful. Usefulness is subject to the constraints of _________. |
|
Definition
| cost-benefit analysis, whereby the value of the information should not exceed the cost of its collection and presentation |
|
|
