Cambodia CPA flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

CIFRS for SMEs

A simplified reporting framework issued by the National Accounting Council for entities without public accountability in Cambodia; fewer disclosure requirements than full CIFRS.

Conceptual Framework recognition

An item is recognised when it meets the definition of an element, probable future economic benefit flows, and its cost or value can be measured reliably.

CIFRS 15 five steps

Identify the contract, identify performance obligations, determine the transaction price, allocate the price to obligations, and recognise revenue when each obligation is satisfied.

Right-of-use asset

Under CIFRS 16, the lessee recognises an asset representing the right to use a leased item, measured at the present value of lease payments plus initial direct costs.

Expected credit loss

A CIFRS 9 impairment model where the loss allowance equals the present value of expected cash shortfalls, reflecting probability of default and loss given default.

Audit risk model

Audit risk equals inherent risk multiplied by control risk multiplied by detection risk; the auditor manages detection risk through the extent and timing of substantive procedures.

Performance materiality

An amount lower than overall materiality set by the auditor to reduce the probability that uncorrected and undetected misstatements exceed overall materiality.

Qualified opinion

Issued when the auditor concludes misstatements or scope limitations are material but not pervasive; the opinion paragraph states 'except for' the matter.

Emphasis of matter

A paragraph in the auditor's report drawing users' attention to a matter appropriately presented in the financial statements, without modifying the audit opinion.

Tax on Profit rate

Cambodia's standard corporate income tax rate is 20% of taxable profit; 30% applies to oil, gas and mining activities, with 0% for approved QIPs.

Monthly tax return deadline

Cambodia's monthly tax return covering VAT and withholding tax is due by the 20th of the following month, filed electronically with the General Department of Taxation.

Cambodian VAT rate

The standard VAT rate in Cambodia is 10% on the value of taxable supplies; exports are zero-rated and specified financial, health and education services are exempt.

Minimum tax

A 1% tax on annual turnover payable by taxpayers subject to Tax on Profit, excluding qualified investment projects; it is creditable against Tax on Profit payable.

Private limited company

A Cambodian company with up to 30 shareholders whose shares are not freely transferable and which cannot offer securities to the public.

Directors' fiduciary duties

Directors must act in the company's best interests with loyalty and care, avoid undisclosed conflicts of interest, and exercise powers for proper purposes.

Cambodia overtime rates

Under the Labor Law, overtime is paid at 150% of the normal rate for daytime hours and 200% for night work, with limits on maximum weekly hours.

Break-even point

The sales volume at which total contribution equals fixed costs; calculated as fixed costs divided by contribution per unit, giving zero profit.

Contribution margin

Sales revenue minus variable costs; it contributes towards covering fixed costs and generating profit, and is used in break-even and relevant-cost decisions.

Absorption costing

A costing method that includes fixed production overhead in product cost, so some fixed overhead is carried in inventory rather than expensed in the period.

Material price variance

Calculated as (standard price minus actual price) multiplied by actual quantity purchased; a positive result is favourable because less was paid than standard.

Weighted average cost of capital

The blended required return on a firm's equity and debt, weighted by market values, with interest on debt adjusted for the tax shield.

Capital asset pricing model

Ke equals the risk-free rate plus beta multiplied by the market risk premium; it estimates the required return on equity from systematic risk.

Cash conversion cycle

Inventory days plus receivable days minus payable days; it measures how long cash is tied up in operations before collection from customers.

Net present value

The sum of discounted future cash flows minus the initial investment; a positive NPV indicates the project adds value at the required rate of return.

Integrity principle

A fundamental ethical principle requiring accountants to be straightforward and honest in all professional and business relationships, including reporting and communications.

Self-review threat

Arises when an accountant evaluates work previously performed by the same firm or team, such as auditing a system the firm designed, reducing objectivity.

Professional scepticism

An attitude of questioning and alertness to conditions indicating possible misstatement, requiring corroboration of evidence rather than accepting management assertions at face value.

IT general controls

Controls over the IT environment covering access management, program changes, backup and recovery, and operations, which support reliance on automated application controls.

Benford's law

A data analytics technique where the leading digit of naturally occurring numbers follows a predictable distribution; deviations may indicate fabrication or fraud.

Computer-assisted audit techniques

Tools such as audit software and test data used to extract, analyse and test full populations of client data rather than relying only on samples.

Segregation of duties

An internal control principle separating authorisation, custody and recording of transactions so that no single person can both perpetrate and conceal an error or fraud.

SOC 1 report

An independent report on a service organisation's controls relevant to user entities' financial reporting, used by auditors when the client outsources processes to that provider.