What is the purpose of IFRS 12?

What is the purpose of IFRS 12?

The objective of IFRS 12 is to require the disclosure of information that enables users of financial statements to evaluate: the nature of, and risks associated with, its interests in other entities the effects of those interests on its financial position, financial performance and cash flows.

Who developed IFRS?

the International Accounting Standards Board (IASB)
Our Standards are developed by our two standard-setting boards, the International Accounting Standards Board (IASB) and the newly created International Sustainability Standards Board (ISSB).

Which of the following is a difference between the US and other Anglo Saxon countries in terms of accounting standards?

Which of the following is a difference among the US and other Anglo-Saxon countries in terms of accounting standards? The US standards are becoming more rigid than the UK Standards.

What is an investment entity under IFRS?

An investment entity is an entity whose business purpose is to make investments for capital appreciation, investment income, or both. An investment entity also evaluates the performance of those investments on a fair value basis.

What is the best evidence of fair value of an asset?

Fair value is an asset’s purchase or sale price in a current transaction between willing parties. The best evidence of fair value is prices quoted in active markets, such as the price for a stock listed on a stock market. CPAs must use this amount to value assets if it is available.

What is the scope of IFRS?

Scope of IFRSs IFRSs apply to the general purpose financial statements and other financial reporting by profit-oriented entities – those engaged in commercial, industrial, financial, and similar activities, regardless of their legal form.

What is de facto agent?

A party is a de facto agent where the investor has, or those that direct the activities of the investor have, the ability to direct that party to act on behalf of the investor.

What is the difference between market value and fair value?

Difference Between Fair Value and Market value. The fair value of the stock is a subjective term calculated using the current financial statements, market position, and possible growth value from a set of metrics. In contrast, the market value is the current share price at which the stock or asset is traded.

What is the difference between GAAP and IFRS?

IFRS is a globally adopted method for accounting, while GAAP is exclusively used within the United States. GAAP focuses on research and is rule-based, whereas IFRS looks at the overall patterns and is based on principle. GAAP uses the Last In, First Out (LIFO) method for inventory estimates.