CIPA Kazakhstan flashcards

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

Fundamental qualitative characteristics

Relevance and faithful representation. Information is relevant if it can influence decisions and is material; faithful representation means complete, neutral and free from error.

IFRS 15 five-step model

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

Lower of cost and NRV

IAS 2 rule for inventory: measure at the lower of cost and net realisable value, where NRV is estimated selling price less costs to complete and sell.

Impairment testing under IAS 36

Test assets for impairment when indicators exist; goodwill and indefinite-life intangibles are tested annually regardless of indicators, comparing carrying amount with recoverable amount.

Break-even point in units

Fixed costs divided by contribution per unit. It is the sales volume at which total contribution equals fixed costs and profit is zero.

Contribution margin ratio

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

Absorption versus variable costing

Absorption costing includes fixed production overhead in product cost; variable costing expenses it in the period. Profit differences equal inventory change times fixed overhead per unit.

Relevant costing rule

Only future, incremental and avoidable costs and revenues are relevant to a decision. Sunk costs and allocated common fixed costs are irrelevant.

Audit risk model

Audit risk equals inherent risk times control risk times detection risk. The auditor controls detection risk through the nature, timing and extent of procedures.

Qualified audit opinion

Issued when misstatements are material but not pervasive, or sufficient appropriate evidence is lacking but the possible effects are material and not pervasive.

Adverse audit opinion

Issued when misstatements are both material and pervasive to the financial statements, meaning the statements as a whole are misleading.

Written representations

A letter from management confirming its responsibility for the financial statements and the completeness of information provided; obtained before the auditor's report is dated.

Kazakhstan corporate income tax rate

The standard rate is 20% on taxable profit of resident legal entities. Agricultural producers are taxed at 10% on income from agricultural activity.

Kazakhstan VAT rate

Value added tax is levied at 12% on taxable turnover and on imports. Registration is required once turnover exceeds the threshold set by the Tax Code.

Withholding tax on non-residents

Tax deducted at source on Kazakhstan-source income such as dividends, interest and royalties paid to non-residents. Treaty relief requires proof of tax residence.

Taxable profit calculation

Accounting profit adjusted for non-deductible expenses, exempt income, tax depreciation and allowable provisions. Losses may be carried forward subject to Tax Code limits.

Limited liability partnership

A separate legal person in which partners' liability is limited to their contributed capital, unless the charter provides for additional liability.

Five ethical principles

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

Conflict of interest safeguard

Disclosure to affected parties and, where needed, separate engagement teams, confidentiality barriers or declining the engagement when threats cannot be reduced.

Contract formation elements

Offer, acceptance, capacity, lawful object, and consideration or lawful cause. A material breach entitles the injured party to damages and possible termination.

Net present value rule

Discount expected cash flows at the cost of capital and subtract the initial outlay. Accept projects with positive NPV; NPV measures value added directly.

Weighted average cost of capital

WACC equals equity weight times cost of equity plus debt weight times after-tax cost of debt, using market values of equity and debt.

Capital asset pricing model

Cost of equity equals the risk-free rate plus beta times the market risk premium. Beta measures the systematic risk of the share.

Cash conversion cycle

Days inventory outstanding plus days sales outstanding minus days payables outstanding. A shorter cycle reduces working capital tied up in operations.

CIA triad

Confidentiality, integrity and availability: the core objectives of information security controls used to design and evaluate IT general controls.

Segregation of duties in IT

Development, testing and production access must be separated, and no single user should authorise, execute and record a transaction.

General IT controls

Controls over access management, change management, IT operations and backup that support the consistent operation of application controls across the IT environment.

Disaster recovery versus continuity

A disaster recovery plan restores IT systems and data after disruption; a business continuity plan covers all critical business functions and is broader in scope.

Engagement letter contents

States the engagement objective and scope, management's responsibilities, the applicable reporting framework, and the basis of fees, agreed before work begins.

Professional scepticism

Questioning information and evidence and remaining alert to contradiction, without assuming management is either dishonest or honest.

Confidentiality principle

Do not disclose information acquired through professional relationships without authority, unless there is a legal or professional right or duty to disclose.

Audit documentation standard

Records must let an experienced auditor with no prior connection understand the work performed, the evidence obtained and the conclusions reached.

Communication with governance

Written communication to those charged with governance covers significant audit findings, independence matters and material weaknesses in internal control.