FI
N-311
FI
NANCI
AL REPORTI
NG NOTES
FOR
BBA3/BAM 3
SEMESTER 1OF2021ACADEMI
CYEAR
CONCEPTUALFRAMEWORKANDGENERALLYACCEPTEDACCOUNTI
NGPRACTI
CES
(
GAAP)
 Whati
saconcept
ualFr
amewor
k?
I
nt
heaccount
i
ngf
i
el
d,
aconcept
ual
f
r
amewor
ki
sast
at
ementofgener
al
l
y
accept
edt
heor
et
i
cal
pr
i
nci
pl
eswhi
chf
or
mt
hef
r
ameofr
ef
er
encef
orf
i
nanci
al
r
epor
t
i
ng.
Thet
heor
et
i
cal
pr
i
nci
pl
espr
ov
i
det
hebasi
sf
or
1.Fordev
el
opmentofnewaccount
i
ngst
andar
ds
2.Ev
al
uat
i
onoft
heexi
st
i
ngst
andar
dst
hatar
ei
nuse.
Fi
nanci
al
r
epor
t
i
ngpr
ocessi
sconcer
nedwi
t
hpr
ov
i
di
ngi
nf
or
mat
i
ont
hati
susef
ul
i
nt
he
busi
nessandeconomi
cdeci
si
on–maki
ngpr
ocess.I
ti
sagai
nstt
hi
sbackgr
ound,
t
hat
concept
ual
f
r
amewor
kwi
l
l
f
or
mt
het
heor
et
i
cal
basi
sf
ordet
er
mi
ni
ngwhi
chev
ent
s
shoul
dbeaccount
edf
or
,
howt
heyshoul
dbemeasur
edandhowt
heyshoul
dbe
communi
cat
edt
ot
heuser
.Al
t
houghi
ti
st
heor
et
i
cal
i
nnat
ur
e,
t
heor
et
i
cal
f
r
amewor
kf
or
f
i
nanci
al
r
epor
t
i
nghashi
ghl
ypr
act
i
cal
f
i
nal
ai
ms
 Whatar
et
hedanger
sofnothav
i
ngconcept
ualf
r
amewor
k?
Ther
ear
esev
er
al
i
mpl
i
cat
i
onsofnothav
i
ngaconcept
ual
f
r
amewor
kandmost
l
y
ar
e;
a.St
andar
dst
endt
obepr
oducedi
nahaphazar
dandf
i
r
e-f
i
ght
i
ngappr
oach.
Whenanagr
eedf
r
amewor
kexi
t
s,
t
hest
andar
dset
t
i
ngbodyactasan
ar
chi
t
ectordesi
gner
,
r
at
hert
hanaf
i
r
e-f
i
ght
er
,
bui
l
di
ngaccount
i
ngr
ul
eson
t
hef
oundat
i
onofsound,
agr
eedbasi
cpr
i
nci
pl
es.
b.I
ft
her
ei
snoconcept
ual
f
r
amewor
kmeanst
hatf
undament
al
pr
i
nci
pl
esar
e
t
ackl
edmor
et
hanoncei
ndi
f
f
er
entst
andar
ds,
t
her
ebypr
oduci
ng
cont
r
adi
ct
i
onsandi
nconsi
st
enci
esi
nbasi
sconcept
s,
suchast
hoseof
pr
udenceandmat
chi
ng.I
nt
heendi
tl
eadst
oambi
gui
t
yandi
taf
f
ect
st
het
r
ue
andf
ai
rconceptoff
i
nanci
al
r
epor
t
i
ng.
c.Ther
ear
ecount
r
i
esl
i
keUSAwher
et
heyhav
eadopt
edadi
f
f
er
entappr
oach
whenpubl
i
shi
ngaccount
i
ngst
andar
ds,
pr
ef
er
r
i
ngi
nst
eadt
oadoptar
ul
e
basedappr
oach.Thi
shascr
eat
edaf
i
nanci
al
r
epor
t
i
ngenv
i
r
onmentgov
er
ned
byspeci
f
i
cr
ul
esr
at
hert
hangener
al
pr
i
nci
pl
es.Thi
swoul
dbeav
oi
dedi
fa
cohesi
v
esetofpr
i
nci
pl
eswer
ei
npl
ace.Theconcept
ual
f
r
amewor
kseekst
o
gi
v
egui
di
ngpr
i
nci
pl
esandi
l
l
ust
r
at
i
v
eexampl
est
oenabl
est
andar
dset
t
er
st
o
setamor
econsi
st
entsetofst
andar
ds.
d.Aconcept
ual
f
r
amewor
kcanal
sohel
pst
andar
dset
t
er
sagai
nstpol
i
t
i
cal
pr
essur
ef
r
om v
ar
i
ousl
obbygr
oupsandi
nt
er
est
edpar
t
i
es.
ADVATAGESANDDI
SADVANTAGESOFCONCEPTUALFRAMEWOWK
Adv
ant
ages
1.Thesi
t
uat
i
oni
sav
oi
dedwher
ebyst
andar
dsar
edev
el
opedona
pat
chwor
kbasi
s,
wher
eapar
t
i
cul
araccount
i
ngpr
obl
em i
sr
ecogni
zedas
hav
i
ngemer
ged,
andr
esour
ceswer
et
henchannel
l
edi
nt
ost
andar
di
si
ng
account
i
ngpr
act
i
cei
nt
hatar
ea,
wi
t
houtr
egar
dt
owhet
hert
hatpar
t
i
cul
ar
i
ssuewasnecessar
i
l
yt
hemosti
mpor
t
anti
ssuer
emai
ni
ngatt
hatt
i
me
wi
t
houtst
andar
di
zat
i
on.
2.Thedev
el
opmentofcer
t
ai
nst
andar
ds(par
t
i
cul
ar
l
ynat
i
onal
st
andar
ds)
hasbeensubj
ectt
oconsi
der
abl
epol
i
t
i
cal
i
nt
er
f
er
encef
r
om i
nt
er
est
ed
par
t
i
es.Wher
et
her
ei
saconf
l
i
ctofi
nt
er
estbet
weenusergr
oupsonwhi
ch
pol
i
ci
est
ochoose,
pol
i
ci
esder
i
v
i
ngf
r
om aconcept
ual
f
r
amewor
kwi
l
l
be
l
essopent
ocr
i
t
i
ci
sm t
hant
hatofst
andar
d–set
t
erbuckl
edt
oext
er
nal
pr
essur
e.
3.Wi
t
houtaconcept
ual
f
r
amewor
k,
somest
andar
dsmayconcent
r
at
eon
pr
of
i
torl
osswher
eassomemayconcent
r
at
eont
hev
al
uat
i
onofnet
asset
s
Di
sadv
ant
ages
1.Fi
nanci
al
st
at
ement
sar
ei
nt
endedf
orav
ar
i
et
yofuser
s,
andi
ti
snotcer
t
ai
n
t
hatasi
ngl
econcept
ual
f
r
amewor
kcanbedev
i
sedwhi
chwi
l
l
sui
tal
l
user
s.
2.Gi
v
ent
hedi
v
er
si
t
yofuserr
equi
r
ement
s,
t
her
emaybeaneedf
orav
ar
i
et
yof
account
i
ngst
andar
ds,
eachpr
oducedf
oradi
f
f
er
entpur
pose.
3.I
ti
snotcl
eart
hatt
heconcept
ual
f
r
amewor
kmakest
het
askofpr
epar
i
ngand
t
heni
mpl
ement
i
ngst
andar
dsanyeasi
ert
hanwi
t
houtaf
r
amewor
k
GENERALLYACCEPTEDACCOUNTI
NGPRACTI
CE(
GAAP)
GAAPr
ef
er
st
oacombi
nat
i
onofsour
ceswhi
chgov
er
naccount
i
ng
I
ni
ndi
v
i
dual
count
r
i
est
hi
si
sseenpr
i
mar
i
l
yasacombi
nat
i
onof
:
Nat
i
onal
Companyl
aw
Nat
i
onal
account
i
ngst
andar
ds
Local
st
ockexchanger
equi
r
ement
s
Al
t
hought
hosesour
cesar
et
hebasi
sf
ort
heGAAPofi
ndi
v
i
dual
count
r
i
es,
t
heconcept
al
soi
ncl
udest
heef
f
ect
sofnonmandat
or
ysour
cessuchas:
 I
nt
er
nat
i
onal
account
i
ngst
andar
ds
 St
at
ut
or
yr
equi
r
ement
si
not
hercount
r
i
es.
THEI
ASB’
SCONCEPTUALFRAMEWORK
Theai
m oft
heconcept
ual
f
r
amewor
ki
st
ocl
ar
i
f
yandof
f
erf
ur
t
hergui
danceonar
easof
gr
eat
estsubj
ect
i
v
i
t
yi
naccount
i
ng,
par
t
i
cul
art
hef
ol
l
owi
ng:
a.Rev
i
si
onst
odef
i
ni
t
i
onsofel
ement
si
nt
hef
i
nanci
al
st
at
ement
s
b.Gui
danceont
her
ecogni
t
i
onandder
ecogni
t
i
on
c.Gui
danceonmeasur
ementbasi
s
d.Pr
i
nci
pl
esf
ordi
scl
osur
eandpr
esent
at
i
oni
nt
hef
i
nanci
al
st
at
ement
s
Theobj
ect
i
v
eofgener
al
pur
posef
i
nanci
al
r
epor
t
i
ngi
st
opr
ov
i
def
i
nanci
al
i
nf
or
mat
i
onaboutt
her
epor
t
i
ngent
i
t
yt
hati
susef
ul
t
oexi
st
i
ngandpot
ent
i
al
i
nv
est
or
sandl
ender
sandot
hercr
edi
t
or
si
nmaki
ngdeci
si
onsr
el
at
i
ngt
o
pr
ov
i
di
ngr
esour
cest
ot
heent
i
t
y
.
Thet
y
pesofeconomi
cdeci
si
onswhi
char
el
i
kel
yt
obeusedi
ncl
ude:
1.Buy
i
ng,
sel
l
i
ngorhol
di
ngequi
t
yanddebti
nst
r
ument
s
2.Pr
ov
i
di
ngorset
t
l
i
ngl
oansandot
herf
or
msofcr
edi
t
3.Exer
ci
si
ngt
her
i
ght
st
ov
ot
eon,
orot
her
wi
sei
nf
l
uence,
management
’
s
act
i
onst
hataf
f
ectt
heuseoft
heent
i
t
y
’
seconomi
cr
esour
ces.
Theconcept
ual
f
r
amewor
kdeal
swi
t
h
a.Theobj
ect
i
v
eofgener
al
pur
poseoff
i
nanci
al
r
epor
t
i
ng
b.Qual
i
t
at
i
v
echar
act
er
i
st
i
csofusef
ul
f
i
nanci
al
i
nf
or
mat
i
on
c.Fi
nanci
al
st
at
ement
sandt
her
epor
t
i
ngent
i
t
y
d.Theel
ement
soff
i
nanci
al
st
at
ement
s
e.Recogni
t
i
onandder
ecogni
t
i
on
f
. Measur
ement
g.Pr
esent
at
i
onanddi
scl
osur
e
h.Concept
sofcapi
t
al
andcapi
t
al
mai
nt
enance
THEOBJECTI
VEOFwGENERALPURPOSEFI
NANCI
ALREPORTI
NG
Thegener
al
pur
poseoft
heConcept
ual
Fr
amewor
ki
st
o:
a.Assi
stt
heI
nt
er
nat
i
onal
Account
i
ngSt
andar
dsBoar
dt
odev
el
opI
FRS
St
andar
dst
hatar
ebasedonconsi
st
entconcept
s
b.Assi
stpr
epar
est
odev
el
opconsi
st
entaccount
i
ngpol
i
ci
eswhennost
andar
d
appl
i
est
oapar
t
i
cul
art
r
ansact
i
onorot
herev
en,
orwhenast
andar
dal
l
owsa
choi
ceofaccount
i
ngpol
i
cy
c.Assi
stal
l
par
t
i
est
ounder
st
andandi
nt
er
pr
etSt
andar
ds
User
sneedi
nf
or
mat
i
onabout
1.Theeconomi
cr
esour
cesoft
heent
i
t
yandt
hecl
ai
msagai
nstt
heent
i
t
y
Hel
psuser
st
oassesst
heent
i
t
y
’
sl
i
qui
di
t
yandsol
v
encyandi
t
sl
i
kel
yneeds
f
oraddi
t
i
onal
f
i
nanci
ng.
2.Changesi
nt
heent
i
t
y
’
seconomi
cr
esour
cesandcl
ai
ms-Hel
psuser
st
o
under
st
andt
her
et
ur
nt
hatt
heent
i
t
yhaspr
oducedoni
t
seconomi
cr
esour
ces.
Thi
si
sani
ndi
cat
orofhowef
f
i
ci
ent
l
yandef
f
ect
i
v
el
ymanagementhasused
t
her
esour
cesoft
heent
i
t
yandi
shel
pf
ul
i
npr
edi
ct
i
ngf
ut
ur
er
et
ur
ns.
ACCRUALACCOUNTI
NG
TheConcept
ual
Fr
amewor
kr
equi
r
esf
i
nanci
al
st
at
ement
st
obepr
epar
ed
usi
ngaccr
ual
account
i
ng.Thati
s,
t
heef
f
ect
soft
r
ansact
i
onsandev
ent
sar
e
r
epor
t
edi
nt
heper
i
odi
nwhi
cht
hoseef
f
ect
soccur
,
ev
eni
ft
her
esul
t
i
ngcash
r
ecei
pt
sandpay
ment
soccuri
nadi
f
f
er
entper
i
od.Thi
si
sal
sor
ef
er
r
edt
oas
t
he“
mat
chi
ng”concept
.
UNDERLYI
NGASSUMPTI
ON:GOI
NGCONCERN
Fi
nanci
al
st
at
ement
sar
enor
mal
l
ypr
epar
edont
heassumpt
i
ont
hatt
heent
i
t
yi
sa
goi
ngconcer
nandwi
l
l
cont
i
nuei
noper
at
i
onf
ort
hef
or
eseeabl
ef
ut
ur
e.
Thi
smeanst
hati
ti
sassumedt
hatt
heent
i
t
yhasnei
t
hert
hei
nt
ent
i
onnort
he
needt
ol
i
qui
dat
eorcur
t
ai
l
mat
er
i
al
l
yt
hescal
eofi
t
soper
at
i
ons.Thati
swhyal
l
bal
ancesar
ecar
r
i
edf
or
war
dt
ot
henextaccount
i
ngper
i
odandasset
sar
ev
al
ued
att
hei
rcar
r
y
i
ngamount
sorNetbookv
al
ue.
Howev
er
,
i
ft
her
ei
saneedt
oscal
edownt
heoper
at
i
ons,
ort
heneedt
ol
i
qui
dat
e
t
hebusi
ness,
t
hef
i
nanci
al
st
at
ement
smayhav
et
obepr
epar
edonadi
f
f
er
ent
basi
ssuchast
he“
br
eakupbasi
s“
QUALI
TATI
VECHARACTERI
STI
CSOFUSEFULI
NFORMATI
ON
Ther
ear
et
wot
y
pesoft
wot
y
pesofqual
i
t
at
i
v
echar
act
er
i
st
i
csofusef
ul
i
nf
or
mat
i
onand
ar
e:
1.Fundament
al
Qual
i
t
at
i
v
eChar
act
er
i
st
i
cs
Thesedi
st
i
ngui
shusef
ul
f
i
nanci
al
r
epor
t
i
ngi
nf
or
mat
i
ont
hati
snotusef
ul
or
mi
sl
eadi
ng.
Ther
et
wot
y
pesofFundament
al
qual
i
t
at
i
v
echar
act
er
i
st
i
cs
a.Re
l
ev
ance:
Rel
ev
antf
i
nanci
al
i
nf
or
mat
i
oni
scapabl
eofmaki
ngadi
f
f
er
encei
nt
hedeci
si
onsmade
byuser
s.
Fi
nanci
al
i
nf
or
mat
i
oni
scapabl
eofmaki
ngadi
f
f
er
encei
ndeci
si
onsi
fi
thaspr
edi
ct
i
v
e
v
al
ue,
conf
i
r
mat
or
yv
al
ue orbot
h
Ther
el
ev
ancei
nf
or
mat
i
oni
saf
f
ect
edbyi
t
snat
ur
eandi
t
smat
er
i
al
i
t
y
.
Mat
er
i
al
i
t
y
I
nf
or
mat
i
oni
smat
er
i
al
i
fomi
t
t
i
ngi
tormi
sst
at
i
ngi
tcoul
di
nf
l
uencedeci
si
onst
hatt
he
pr
i
mar
yuserofgener
al
pur
posef
i
nanci
al
st
at
ement
smakeont
hebasi
soft
hose
r
epor
t
s,
whi
chpr
ov
i
def
i
nanci
al
i
nf
or
mat
i
onaboutspeci
f
i
cr
epor
t
i
ngent
i
t
y
.
Repr
esent
at
i
on:
Gener
al
pur
posef
i
nanci
al
r
epor
t
sr
epr
esenteconomi
cphenomenai
nwor
dsand
number
s.
Tobeusef
ul
,
f
i
nanci
al
i
nf
or
mat
i
onmustnotonl
yber
el
ev
ant
,
i
tmustal
sor
epr
esent
f
ai
t
hf
ul
l
yt
hephenomenai
tpur
por
t
st
or
epr
esent
.
Enhanci
ngQual
i
t
at
i
v
eChar
act
er
i
st
i
cs
Compar
abi
l
i
t
y
:
I
nf
or
mat
i
onaboutar
epor
t
i
ngent
i
t
yi
smor
eusef
ul
i
fi
tcanbecompar
edwi
t
hasi
mi
l
ar
i
nf
or
mat
i
onaboutot
herent
i
t
i
esandwi
t
hsi
mi
l
ari
nf
or
mat
i
onaboutt
hesameent
i
t
yf
or
anot
herper
i
odoranot
herdat
e.
Compar
abi
l
i
t
yenabl
esuser
st
oi
dent
i
f
yandunder
st
andsi
mi
l
ar
i
t
i
esi
n,
anddi
f
f
er
ences
among,
i
t
ems.
Ver
i
f
i
abi
l
i
t
y
:
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i
f
i
abi
l
i
t
yhel
pst
oassur
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st
hati
nf
or
mat
i
onr
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esent
sf
ai
t
hf
ul
l
yt
heeconomi
c
phenomenai
tpur
por
t
st
or
epr
esent
.
Ver
i
f
i
abi
l
i
t
ymeanst
hatdi
f
f
er
entknowl
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eandi
ndependentobser
v
er
scoul
dr
each
consensus,
al
t
houghnotnecessar
i
l
ycompl
et
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eement
,
t
hatapar
t
i
cul
ardepi
ct
i
oni
s
af
ai
t
hf
ul
r
epr
esent
at
i
on.
Ti
mel
i
ness:
Ti
mel
i
nessmeanst
hati
nf
or
mat
i
oni
sav
ai
l
abl
et
odeci
si
onmaker
si
nt
i
met
obecapabl
e
ofi
nf
l
uenci
ngt
hei
rdeci
si
ons.
Under
st
andabi
l
i
t
y
:
Cl
assi
f
y
i
ng,
char
act
er
i
zi
ngandpr
esent
i
ngi
nf
or
mat
i
oncl
ear
l
yandconci
sel
ymakesi
t
under
st
andabl
e.
Whi
l
esomephenomenaar
ei
nher
ent
l
ycompl
exandcannotbemadeeasyt
o
under
st
and,
t
oexcl
udesuchi
nf
or
mat
i
onwoul
dmakef
i
nanci
al
r
epor
t
si
ncompl
et
eand
pot
ent
i
al
l
ymi
sl
eadi
ng.
ELEMENTSOFFI
NANCI
ALSTATEMENT
Tr
ansact
i
onsandot
herev
ent
sar
egr
oupedt
oget
heri
nbr
oadcl
assesandi
nt
hi
sway
t
hei
rf
i
nanci
al
ef
f
ect
sar
eshowni
nt
hef
i
nanci
al
st
at
ement
s.Thesebr
oadcl
assesar
e
t
heel
ement
soff
i
nanci
al
st
at
ement
s
a.Thoset
hatmeasur
et
hef
i
nanci
al
posi
t
i
oni
nt
heSt
at
ementoff
i
nanci
al
posi
t
i
on
1.Asset
s
2.Li
abi
l
i
t
i
es
3.Equi
t
y
b. Thoset
hatmeasur
et
heper
f
or
mancei
nSt
at
ementofpr
of
i
torl
ossandot
her
compr
ehensi
v
ei
ncome
1.I
ncome
2.Expenses
A.FI
NANCI
ALPOSI
TI
ON
1.ASSET
Apr
esenteconomi
cr
esour
cecont
r
ol
l
edbyabent
i
t
yasar
esul
tofpastev
ent
s.
Aneconomi
cr
esour
cei
sar
i
ghtt
hathast
hepot
ent
i
al
t
opr
oduceeconomi
c
benef
i
t
s.
Asset
sar
eusual
l
yempl
oy
edt
opr
oducegoodsandser
v
i
cesf
orcust
omer
s;
cust
omer
swi
l
l
t
henpayf
ort
hese.Cashi
t
sel
fr
ender
sser
v
i
cest
ot
heent
i
t
y
duet
oi
t
scommandov
erot
herr
esour
ces.
Theeconomi
cbenef
i
t
scancomei
nv
ar
i
ousf
or
ms,
i
ncl
udi
ng
 Cashf
l
ows,
suchasr
et
ur
nsoni
nv
est
mentsour
ces
 Exchangeofgoods,
suchast
r
adi
ng,
sel
l
i
nggoods,
pr
ov
i
si
onof
ser
v
i
ces
 Reduct
i
onorav
oi
danceofl
i
abi
l
i
t
i
es,
suchaspay
i
ngbi
l
l
s
2.LI
ABI
LI
TY
Apr
esentobl
i
gat
i
onoft
heent
i
t
yt
ot
r
ansf
eraneconomi
cr
esour
ceasar
esul
t
ofpastev
ent
.
Foral
i
abi
l
i
t
yt
oexi
st
,
t
hr
eecr
i
t
er
i
amustal
l
besat
i
sf
i
ed
a.Theent
i
t
yhasanobl
i
gat
i
on
b.Theobl
i
gat
i
oni
st
ot
r
ansf
eraneconomi
cr
esour
ce
c.Theobl
i
gat
i
oni
sapr
esentobl
i
gat
i
ont
hatexi
st
sasar
esul
tofpastev
ent
s.
3.EQUI
TY
Ther
esi
dual
i
nt
er
esti
nt
heasset
soft
heent
i
t
yaf
t
erdeduct
i
ngal
l
i
t
sl
i
abi
l
i
t
i
es.
AsEqui
t
yi
sdef
i
neasar
esi
dual
,
buti
tmaysubcl
assi
f
i
edi
nt
hest
at
ementof
f
i
nanci
al
posi
t
i
on.Thi
swi
l
l
i
ndi
cat
el
egal
orot
herr
est
r
i
ct
i
onsont
heabi
l
i
t
yof
t
heent
i
t
yt
odi
st
r
i
but
eorot
her
wi
seappl
yi
t
sequi
t
y
.Somer
eser
v
esar
e
r
equi
r
edbyt
hest
at
ut
eorot
herl
aw,
egf
orf
ut
ur
epr
ot
ect
i
onofcr
edi
t
or
s.The
amountshownf
orequi
t
ydependsont
hemeasur
ementofasset
sand
l
i
abi
l
i
t
i
es.I
thasnot
hi
ngt
odowi
t
ht
hemar
ketv
al
ueoft
heent
i
t
y
’
shar
es.
PERFORMANCE
Pr
of
i
ti
susedasameasur
eofper
f
or
mance,
orasabasi
sf
orot
hermeasur
es(
eg
ear
ni
ngspershar
e)
.I
tdependsdi
r
ect
l
yont
hemeasur
ementofi
ncomeandexpenses.
I
NCOME
I
ncr
easesi
nasset
sordecr
easesi
nl
i
abi
l
i
t
i
es,
t
hatr
esul
ti
ni
ncr
easesi
nequi
t
y
,
ot
her
t
hant
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el
at
i
ngt
ocont
r
i
but
i
onsf
r
om hol
der
sofequi
t
ycl
ai
ms.I
ncomei
ncl
udes
r
ev
enueandunr
eal
i
sedgai
ns
EXPENSES
Decr
easesi
nasset
sori
ncr
easesi
nl
i
abi
l
i
t
i
es,
t
hatr
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ti
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nequi
t
yot
her
t
hant
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el
at
i
ngt
odi
st
r
i
but
i
onst
ohol
der
sofequi
t
ycl
ai
ms.I
ti
ncl
udesl
ossesand
unr
eal
i
zedl
osses.
RECOGNI
TI
ONANDDERECOGNI
TI
ON
RECOGNI
TI
ON-i
st
hepr
ocessf
ori
ncl
usi
oni
nt
hest
at
ementoff
i
nanci
al
posi
t
i
onor
st
at
ementofpr
of
i
torl
ossandot
hercompr
ehensi
v
ei
ncomeani
t
em t
hatmeet
st
he
def
i
ni
t
i
onofoneoft
heel
ement
soff
i
nanci
al
st
at
ement
s-asset
,
l
i
abi
l
i
t
y
,
equi
t
y
,
i
ncome
orexpenses
Anassetorl
i
abi
l
i
t
yshoul
dber
ecogni
zedi
fi
twi
l
l
bebot
hr
el
ev
antandpr
ov
i
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sof
t
hef
i
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al
st
at
ement
swi
t
haf
ai
t
hf
ul
r
epr
esent
at
i
onoft
het
r
ansact
i
onsoft
heent
i
t
y
.
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ual
Fr
amewor
kt
akes,
t
her
e,
t
hesef
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al
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i
t
at
i
v
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act
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i
st
i
cs
al
ongwi
t
ht
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i
ni
t
i
onsoft
heel
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soft
hef
i
nanci
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st
at
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sast
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component
sofr
ecogni
t
i
on.
DERECOGNI
TI
ON-i
st
her
emov
al
ofal
l
orpar
toft
her
ecogni
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l
i
t
yf
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om
t
heent
i
t
y
’
sst
at
ementoff
i
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al
posi
t
i
on.Der
ecogni
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i
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mal
l
yoccur
swhent
hat
i
t
em nol
ongermeet
st
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i
ni
t
i
onofanassetorl
i
abi
l
i
t
y
.
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ual
Fr
amewor
kconsi
der
sder
ecogni
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i
ont
obeaf
act
orwhent
hef
ol
l
owi
ng
occur
s:
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r
ol
ofal
l
orpar
toft
her
ecogni
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2. Theent
i
t
ynol
ongerhasanobl
i
gat
i
onf
oral
i
abi
l
i
t
y
.
MEASUREMENT
El
ement
sr
ecogni
zedi
nt
hef
i
nanci
al
st
at
ement
sar
equant
i
f
i
edi
nmonet
ar
yt
er
ms.Thi
s
r
equi
r
est
hesel
ect
i
onofameasur
i
ngbasi
s.Anumberoft
hesear
eusedt
odi
f
f
er
ent
degr
eesandi
nv
ar
y
i
ngcombi
nat
i
onsi
nf
i
nanci
al
st
at
ement
s.Theyi
ncl
udet
hef
ol
l
owi
ng
a.Hi
st
or
i
cal
Cost
-Thepr
i
cepai
df
oranassetorf
ort
heev
entwhi
chgav
er
i
set
ot
he
l
i
abi
l
i
t
y
.Thepr
i
cewi
l
l
notchange.
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r
entVal
ue-Thepr
i
cepai
df
oranassetort
hel
i
abi
l
i
t
yv
al
uewi
l
l
beupdat
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o
r
ef
l
ectanychangessi
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ncur
r
ed.
c.Fai
rVal
ue-Pr
i
cet
hatwoul
dber
ecei
v
edt
osel
l
anassetorpai
dt
ot
r
ansf
era
l
i
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l
i
t
yi
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der
l
yt
r
ansact
i
onbet
weenmar
ketpar
t
i
ci
pant
satt
he
measur
ementdat
e.
d.Val
uei
nuse-i
st
hepr
esentv
al
ueoft
hecashf
l
ows,
orot
hereconomi
cbenef
i
t
s,
t
hatanent
i
t
yexpect
st
oder
i
v
ef
r
om t
heuseofanassetandi
t
sul
t
i
mat
edi
sposal
.
e.Cur
r
entCost
-Cur
r
entcost
,
l
i
kehi
st
or
i
cal
cost
,
i
sanent
r
yv
al
ue:
i
tr
ef
l
ect
spr
i
ces
i
nt
hemar
keti
nwhi
cht
heent
i
t
ywoul
dacqui
r
easset
sori
ncurt
hel
i
abi
l
i
t
y
.
Essent
i
al
l
yt
her
epl
acementcostofanassetorl
i
abi
l
i
t
y
THEREGULATORYFRAMEWORK
Ther
egul
at
or
yf
r
amewor
ki
st
hemosti
mpor
t
antel
ementi
nensur
i
ngr
el
ev
antand
f
ai
t
hf
ul
l
ypr
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i
nanci
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i
nf
or
mat
i
onandt
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s
andot
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Theneedf
orr
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amewor
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Ar
egul
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amewor
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oraccount
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ort
wopr
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nci
pal
r
easons:
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r
al
sour
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enceofgener
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l
yaccept
edaccount
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pr
act
i
ce(
GAAP)i
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v
enmar
ketand
2.Todesi
gnat
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st
em ofenf
or
cementoft
heGAAPt
oensur
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ency
bet
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ce.
Theai
m oft
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amewor
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.
Pr
i
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I
SRSSt
andar
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i
t
t
enusi
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pr
i
nci
pl
esbased‘
appr
oach.Thi
smeanst
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t
heyar
ebasedont
hedef
i
ni
t
i
onsoft
heel
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soft
hef
i
nanci
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st
at
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s,
r
ecogni
t
i
onandmeasur
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i
nci
pl
es,
assetouti
nt
heConcept
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Fr
amewor
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f
orFi
nanci
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Repor
t
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Ot
herGAAP,
f
orexampl
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r
ul
ebased’
whi
chmeanst
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dscont
ai
nr
ul
est
hatappl
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ospeci
f
i
cscenar
i
os
Adv
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agesanddi
sadv
ant
agesofapr
i
nci
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Adv
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i
nci
pl
ebasedappr
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ngl
econcept
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f
r
amewor
kensur
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st
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dsar
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t
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her
2.Rul
escanbebr
okenand‘
l
oophol
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f
ound.Pr
i
nci
pl
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f
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cat
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’
scenar
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o.
3.Pr
i
nci
pl
esr
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heneedf
oeexcessi
v
edet
ai
l
i
nst
andar
ds.
Di
sadv
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ages
1.Pr
i
nci
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escanbecomeoutofdat
easpr
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2.Pr
i
nci
pl
escanbeov
er
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yf
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exi
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eandsubj
ectt
omani
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at
i
on
THEI
NTERNATI
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NGSTANDARDSBOARD(
I
ASB)
Thi
si
st
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hati
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esponsi
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ort
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Thet
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SETTI
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om ar
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Repor
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Adv
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)
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STEP1
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