what are the characteristics of a acceptable scheme?

What are the disclosure requirements for reporting entities under IAS 21

What are thee sections of IASB framework ad their contribution to quality financial statements.

 

Characteristics of an Acceptable Scheme.

·         Should have clearly defined goals and objectives.

·         Should outline the scope of the engagement.

·         Should outline deliverables.

·         Should outline schedules and milestones for specific tasks.

·         Should outline how outcomes will be measured.

Step-by-step explanation

Disclosure Requirements for Reporting Entities Under IAS 21.

IAS 21 The Effects of Changes in Foreign Exchange Rates outlines procedures to be followed when accounting for foreign currency transactions and operations in financial statements as well as translation of financial statements it a presentation currency. Disclosure requirements include;

·         The number of exchange differences recognized in profit or loss (excluding differences arising on financial instruments measured at fair value through profit or loss in accordance with IAS 39.

·         Net exchange differences recognized in other comprehensive income and accumulated in a separate component of equity, and a reconciliation of the number of such exchange differences at the beginning and end of the period

·         When the presentation currency is different from the functional currency, disclose that fact together with the functional currency and the reason for using a different presentation currency.

·         A change in the functional currency of either the reporting entity or a significant foreign operation and the reason therefor.

·         When an entity presents its financial statements in a currency that are different from its functional currency, it may describe those financial statements as complying with IFRS only if they comply with all the requirements of each applicable Standard (including IAS 21) and each applicable Interpretation.

Sections of IASB Framework and their Contribution to Quality Financial Statements.

The IASB Framework has 8 sections including;

a.       The objective of general purpose financial reporting outlines that the financial statements should be prepared with objectivity.

b.      Qualitative characteristics of useful financial information provide that financial statements should be relevant, verifiable, comparable, and timely.

c.       Financial Statements and Reporting entity outlines that the going concern aspect must be addressed.

d.      The elements of financial statements define components of financial statements to avoid wrong classification.

e.       Recognition and derecognition outlines the items that must be considered during recognition.

f.        Measurement provides various measurement techniques.

g.      Presentation and disclosure provides presentation guidelines,

h.      Concepts of capital and capital maintenance discuss issues on capital