1. Define nominal dollars.
    They are measurements in the price level in effect at a transaction date. These measurements are not adjusted for inflation
  2. What is the MD&A section?
    The Management Discussion and Analysis: A narrative written by management that is an integral part of the disclosure of the financial statements.
  3. Define nonmonetary items
    The specific price of nonmonetary items can change.
  4. What are the disclosure requirements for noncurrent liabilities?
    Combined aggregate amount of maturities on borrowings 5+ years after balance sheet, sinking fund requirements; the aggregate amount of payments for unconditional obligations to purchase fixed or minimum amounts of goods or services; the fair value of each financial debt instrument in the financial statements or in the notes; the nature of the firm's liabilities, interest rates and maturity dates, conversion options, assets pledged as collateral, and restrictions.
  5. Define a purchasing power loss
    It results from holding monetary assets during inflationary times or having monetary liabilities during deflationary times.
  6. What does the first footnote typically cover?
    Summary of significant accounting policies
  7. Define purchasing power.
    The purchasing power of an asset is the amount of goods and services that can be obtained by transferring the asset to another party.
  8. What disclosure is required by Firms in hyperinflationary economies under IFRS?
    Disclosure of the impact of inflation on the financial statements is required.
  9. What is presented in the related party transaction disclosures?
    Nature of relationship, description of all transactions for years presented, dollar amounts of transactions, and receivables to or from parties.
  10. What is the difference between errors and Irregularities?
    Errors are unintentional, irregularities are intentional.
  11. What is included in illegal acts for companies?
    Illegal contributions and bribes.
  12. Under IFRS the Summary of Significant Accounting Policies should include:
    • Judgments and key assumptions made in applying those policies.
    • Measurement bases used for recognition (e.g. historical cost, fair value).
    • Information enabling an assessment of the estimation uncertainty that could result in a material adjustment to the balances of assets and liabilities, which are point estimates in many cases.
  13. Define monetary item
    The specific price of monetary items cannot change.
  14. Define a specific price change.
    The change in the price of a specific good or service over a period of time.
  15. Define "general prices."
    he term "general prices" refers to a market basket of items that the typical consumer purchases.
  16. Define purchasing power gain
    It results from holding monetary assets during deflationary times or having monetary liabilities during inflationary times.
  17. Define inflation.
    It is the increase in general prices for a period of time; deflation is the decrease in general prices.
  18. Define constant dollars.
    They are measurements in the general price level as of a specific date.
  19. What is a development stage enterprise?
    An enterprise that substantially all of its efforts are related to establishing a new business.
Card Set
Overview :: Notes to Financial Statements