ACCOUNTING (MARCHINI)
According to IASB, the international indipendent standard setter that drafts IAS/IFRS international
accounting standards, the statement of financial position:
o Is a compulsory scheme drafted folowing current/not current or liquid7not liquid schemes
according to a choice made by the Board of Directot thet drafts the financial statement
o Is a compulionary scheme drafted in both the following schemes current/not current and
liquid7not liquid schemes
o Is a voluntary scheme drafted only by companies that operate in the financial industry
The cash flow statement, the compulsory scheme required by IASB, aims to represent
o The movement, that is in cash on hands, demand deposit and short-term, highly liquid
investments that are readily convertible to known amounts to cash
o Revenues and expences under IASB/IFRS standards
o The movement in cash that is cash on hands and demand deposit
According to IASB, the international indipendent standard setter that drafts IAS/IFRS international
accounting standards, a company has to draft a statement called “comprehensive income
statrement” as compulsory scheme. It is a statement that has to show:
o The income of the company divided in different sections: operating, investing, and financial
activities
o The equity of the company, that is differentg beween teh asseta and the liabilies
o The income of the company with only a minimum structure
The Framework oif the IASB, that is the IASB statement of principle s which provides generally
acceptes guidance for the development of new repotrting practices and for chalòlenging and
eveluating the existing practices, the principle of materiality:
o States that the effect of transactions and othee events are recognized when they occur ( and
not as cash or its equivalent is recived or paid) and they are recorded in the accounting records and
reported in the financial statements of the periods to which they relate
o Defines that an ionformation is material if tits ommision or misstatement could influence the
conomicdecisions of users taken on th ebasis of th efinancial statements
o Is similar and ha sthe same importance of the principle of relevance
The harmonization process, as th eprocess of increacing the comparability of accountinjg practices
by setting bounds to their deree of variation:
o Has determined that IAS/IFRS international accounting prionciples issued by the IASB are
now dopted in all countris in the world
o Is a process that started in the past and it is different from standardisation or convergence
process I
o is a process thet has to begin yet and it is waiting only the ONU authorization
The endorsement mechanism is:
