Kazakhstan CAP flashcards

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

Conceptual framework asset definition

A present economic resource controlled by the entity as a result of past events; the resource has the potential to produce economic benefits.

IFRS 15 five-step model

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

IFRS 16 lessee recognition

A lessee recognises a right-of-use asset and a lease liability measured at the present value of lease payments, with subsequent depreciation and interest.

Expected credit loss stages

Stage 1 uses 12-month ECL; Stage 2 uses lifetime ECL after significant increase in credit risk; Stage 3 uses lifetime ECL for credit-impaired assets.

IAS 2 inventory measurement

Inventory is measured at the lower of cost and net realisable value; cost formulas permitted are FIFO and weighted average, while LIFO is prohibited.

Break-even point formula

Break-even units equal fixed costs divided by contribution per unit; break-even revenue equals fixed costs divided by the contribution margin ratio.

Contribution margin ratio

Contribution margin divided by sales revenue; it shows the proportion of each sales unit available to cover fixed costs and generate profit.

High-low method

Variable cost per unit equals the change in total cost divided by the change in activity; fixed cost is total cost minus variable cost at that activity.

Material price variance

Standard price minus actual price, multiplied by actual quantity purchased or used; a positive result is favourable, a negative result is adverse.

Relevant cost criteria

Future, incremental and avoidable costs are relevant to a decision; sunk costs and allocated common fixed costs are irrelevant and should be excluded.

Audit risk model

Audit risk equals inherent risk multiplied by control risk multiplied by detection risk; the auditor controls detection risk through the nature, timing and extent of procedures.

Performance materiality

An amount lower than overall materiality, set to reduce to an appropriately low level the probability that aggregate uncorrected misstatements exceed materiality.

Modified audit opinions

A qualified opinion is issued for material but not pervasive misstatement; adverse for pervasive misstatement; disclaimer when the auditor cannot obtain sufficient evidence.

Fraud risk in revenue

ISA 240 creates a rebuttable presumption that revenue recognition involves a risk of fraud; the auditor must evaluate and document the rebuttal if made.

Corporate income tax rate

The standard corporate income tax rate for resident legal entities in Kazakhstan is 20 percent of taxable income, subject to special regimes.

Kazakhstan VAT rate

The standard value added tax rate in Kazakhstan is 12 percent; mandatory registration applies once annual turnover exceeds the threshold set in the Tax Code.

Individual income tax rates

Resident individuals generally pay 10 percent on employment income; dividends and certain capital gains are taxed at 5 percent.

Tax residency 183-day rule

An individual is generally a Kazakhstan tax resident if present in the country for 183 or more days in any consecutive 12-month period.

Withholding tax on non-residents

Kazakhstan-source income paid to non-residents is subject to withholding tax; treaty relief requires documentary confirmation of residency and beneficial ownership.

Limited liability company bodies

The general meeting of participants is the highest body; the director is the executive body; a supervisory board may be created under the charter.

Director duty of loyalty

Directors must act in the company's best interests, avoid conflicts of interest, and disclose transactions in which they have a personal interest.

Accounting law requirement

The Law on Accounting and Financial Reporting requires entities to maintain accounting records and prepare financial statements in accordance with IFRS.

AIFC legal regime

The Astana International Financial Centre operates under its own constitutional statute, company law and an independent court based on English common law principles.

Net present value rule

NPV is the present value of cash inflows minus outflows; a positive NPV indicates the project adds value at the required rate of return.

WACC formula

WACC equals the equity weight times cost of equity plus the debt weight times cost of debt times one minus the tax rate.

CAPM cost of equity

The cost of equity equals the risk-free rate plus beta multiplied by the market risk premium; beta measures systematic risk relative to the market.

Cash conversion cycle

Days inventory outstanding plus days sales outstanding minus days payable outstanding; a shorter cycle reduces the working capital tied up in operations.

Fundamental ethical principles

Integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour as set out in the IESBA Code of Ethics.

Self-review threat

Arises when a firm must evaluate its own prior work or judgements; preparing accounting records for an audit client is a common example.

Contingent fee prohibition

A fee calculated on the outcome of an audit engagement creates a self-interest threat and is prohibited because it undermines objectivity and independence.

Segregation of IT duties

The functions of initiating, authorising, recording and reconciling transactions should be assigned to different users to reduce error and fraud risk.

Kazakhstan electronic invoice

Electronic invoices are registered in the State Revenue Committee information system; registration is required for VAT purposes before the invoice is used.