ACA Corporate Reporting cheat sheet

Conceptual Framework (2018): relevance and faithful representation are fundamental qualitative characteristics; comparability, verifiability, timeliness and understandability are enhancing. Cost constraint applies to all.

Recognition criteria: an element is recognised when it meets the definition and recognition provides relevant and faithful information; IAS 38 additionally requires probable future economic benefits and reliable measurement.

IAS 1 requires a complete set of financial statements: statement of financial position, statement of profit or loss and OCI, statement of changes in equity, statement of cash flows, and notes including accounting policies and IAS 1.125 judgements/sources of estimation uncertainty.

IAS 8 hierarchy: IFRSs dealing with similar issues, then definitions/recognition criteria in the Conceptual Framework, then pronouncements of other standard-setters and accepted practice. Material prior-period errors are corrected retrospectively.

IFRS 15 five steps: identify contract; identify performance obligations; determine transaction price; allocate price to obligations; recognise revenue when (or as) each obligation is satisfied.

IFRS 15 variable consideration is estimated using expected value or most likely amount and constrained to the amount for which a significant revenue reversal is not highly probable.

IFRS 16 lessee: recognise right-of-use asset and lease liability at present value of lease payments; remeasure for index/rate changes, residual guarantees and modification; short-term and low-value exemptions permitted.

IAS 36 impairment: recoverable amount is higher of fair value less costs of disposal and value in use; test annually for goodwill, indefinite-life intangibles and not-yet-available intangibles regardless of indicators.

IAS 37 provisions are discounted where the effect is material; a reimbursement is recognised as a separate asset only when virtually certain; contingent liabilities are disclosed, not recognised.

IFRS 3 acquisition method: identify acquirer; determine acquisition date; recognise and measure identifiable assets, liabilities and NCI; recognise and measure goodwill or a gain from a bargain purchase.

Goodwill = consideration transferred + NCI + previously held interest − net identifiable assets acquired. NCI is measured either at fair value (full goodwill) or at proportionate share of net assets.

Control under IFRS 10 exists when the investor has power over relevant activities, exposure to variable returns, and the ability to use power to affect returns; potential voting rights are considered if substantive.

Consolidation eliminates intragroup balances, transactions, income and expenses in full; unrealised profits are eliminated against the seller's recognised income.

Equity method (IAS 28): initially at cost, then adjusted for share of profit or loss, OCI and dividends; goodwill is included in the carrying amount and not separately tested.

IAS 21: monetary items are retranslated at closing rate with differences in profit or loss; non-monetary items at fair value use the rate at the measurement date; foreign operations use closing rate for assets/liabilities and average rate for income/expenses, with differences in OCI.

IAS 33 diluted EPS adjusts earnings and the weighted average number of shares for dilutive potential ordinary shares; potential shares are included only if dilutive, in order of most to least dilutive.

IFRS 8 requires disclosure of revenue from external customers, inter-segment revenue, interest, depreciation, segment profit or loss, assets and liabilities, plus reliance on major customers and products/services and geographic information.

IFRS 5: non-current assets held for sale are measured at the lower of carrying amount and fair value less costs to sell, depreciation ceases, and assets/liabilities are presented separately; discontinued operations are shown as a single amount in profit or loss.