Reading 23 financial reporting standards questions and answers

%'?&A"ÿ#$>$"A"'$ÿ>'<ÿJ&;K%'Cÿ?>L%$>@ÿ#!AA>;MI

?>#Nÿ=&Jÿ#$>$"A"'$ÿ>'<ÿ>!<%$&;O#ÿ;"L&;$

P>@>'?"ÿ#N""$ÿ>'<ÿ"QL@>'>$&;Mÿ'&$"#I

E%C'%=?>'$ÿ>??&!'$%'Cÿ?N&%?"#ÿ>;"ÿA&#$ÿK"@Mÿ$&ÿP"ÿ<%#?@&#"<ÿ%'ÿ$N"ÿA>'>C"A"'$ÿ?&AA"'$>;Mÿ!'<";+

RIEIÿSDDTÿ&'@MI

P&$NÿRIEIÿSDDTÿ>'<ÿ)U9EI

)U9Eÿ&'@MI

VN%?Nÿ&=ÿN"ÿ=&@@&J%'Cÿ#$>$"A"'$#ÿ>P&!$ÿ'>'?%>@ÿ#$>$"A"'$#ÿ>'<ÿ;"L&;$'Cÿ#$>'<>;<#ÿ%#ÿWXYZ[ÿ>??!;>$"\

9"L&;$'Cÿ#$>'<>;<#ÿ=&?!#ÿA&#$@Mÿ&'ÿ=&;A>$ÿ>'<ÿL;"#"'$>$%&'ÿ>'<ÿ>@@&JÿA>'>C"A"'$

J%<"ÿ@>$%!<"ÿ%'ÿ>##!AL$%&'#I

]N"ÿ&P^"?$%_"ÿ&=ÿ'>'?%>@ÿ#$>$"A"'$#ÿ%#ÿ$&ÿL;&_%<"ÿ"?&'&A%?ÿ<"?%#%&'ÿA>K";#ÿJ%$Nÿ!#"=!@

%'=&;A>$%&'I

U%'>'?%>@ÿ#$>$"A"'$#ÿ?&!@<ÿL&$"'$%>@@Mÿ$>K"ÿ>'Mÿ=&;Aÿ%;"L&;$'Cÿ#$>'<>;<#ÿ<%<'O$"Q%#$I

Dÿ=Aÿ"'C>C"#ÿ%'ÿ>ÿ'"Jÿ$ML"ÿ&=ÿ'>'?%>@ÿ>'#>?$%&'ÿ$N>$ÿN>#ÿ>ÿA>$";%>@ÿ"=="?$ÿ&'ÿ%#ÿ">;'%'C#IÿD'ÿ>'>@M#$ÿ#N&!@<ÿ`aZ[ÿdXWeÿP"

#!#L%?%&!#ÿ&=ÿN"ÿ'"Jÿ$>'#>?$%&'ÿ%

A>'>C"A"'$ÿN>#ÿ'&$ÿ"QL@>%'"<ÿ%#ÿP!#%'"##ÿL!;L&#"I

$N"ÿ$>'#>?$%&'ÿ%#ÿ'&$ÿC&_";'"<ÿPMÿ"Q%#$%'Cÿ;"C!@>$%&'#I

'&ÿ>??&!'$%'Cÿ#$>'<>;<ÿ"Q%#$#ÿ$N>$ÿ>LL@%"#ÿ$&ÿ$N"ÿ$>'#>?$%&'I

%'A&C"ÿ#$@$"C"'$ÿ@'>ÿL&=M%'EÿA@N%$@Bÿ#!CC@=OK

A@#Pÿ?&Lÿ#$@$"C"'$ÿ@'>ÿ@!>%$&=Q#ÿ="N&=$

R@B@'A"ÿ#P""$ÿ@'>ÿ"SNB@'@$&=Oÿ'&$"#K

TSNB@'@$%&'

U%'@'A%@Bÿ#$@$"C"'$#ÿ$P@$ÿ@="ÿ="<!%=">ÿROÿ)FGÿJ&Kÿ-ÿ%'AB!>"ÿ@ÿR@B@'A"ÿ#P""$D@ÿ#$@$"C"'$ÿ&?ÿA&CN="P"'#%V"ÿ%'A&C"Dÿ@ÿA@#Pÿ?&L

#$@$"C"'$D@ÿ#$@$"C"'$ÿ&?ÿAP@'E"#ÿ%'ÿ&L'"=#Qÿ"<!%$ODÿ@'>ÿ"SNB@'@$&=Oÿ'&$"#ÿ$P@$ÿ'AB!>"ÿ@ÿ#!CC@=Oÿ&?ÿP"ÿA&CN@'OQ#ÿ@AA&!'$%'EN&B%A%"#KÿFGÿJ&Kÿ-ÿ>&"#ÿ'&$ÿ"<!%="ÿ@'ÿ@!>%$&=Q#ÿ="N&=$&=ÿ@ÿL&=M%'EÿA@N%$@Bÿ#!CC@=OK

;"?"="'A"#

123ÿW7ÿG"##%&'ÿ:ÿXÿ;"@>%'EÿY9ÿXÿZ[Gÿ"

131ÿ\317

]"Oÿ^&'A"N$#ÿROÿZ[G

G%E'%?A@'$ÿ@AA&!'$%'EÿAP&%A"#ÿ@="ÿC&#$ÿM"BOÿ$&ÿR"ÿ>%#AB&#">ÿ%'ÿ$P"ÿC@'@E"C"'$ÿA&CC"'$@=Oÿ!'>"=+

_KGKÿ`FFaÿ&'BOK

R&$Pÿ_KGKÿ`FFaÿ@'>ÿ)U;GK

)U;Gÿ&'BOK

TSNB@'@$%&'

G%E'%?A@'$ÿ@AA&!'$%'EÿN&B%A%"#ÿ@'>ÿ"#$%C@$"#ÿ$P@$ÿ"<!%="ÿC@'@E"C"'$ÿ!>EC"'$ÿC!#$ÿR"ÿ>%#AB&#">ÿ%'ÿ$P"ÿC@'@E"C"'$

A&CC"'$@=OÿH#&C"$%C"#ÿA@BB">ÿc@'@E"C"'$ÿ*%#A!##%&'ÿ@'>ÿF'@BO#%#Iÿ!'>"=ÿR&$Pÿ)U;Gÿ@'>ÿ_KGKÿ`FFaK

;"?"="'A"#

123ÿW7ÿG"##%&'ÿ:ÿXÿ;"@>%'EÿY9ÿXÿZ[Gÿ%

131ÿ\317

]"Oÿ^&'A"N$#ÿROÿZ[G

dP%APÿ&?ÿP"ÿ?&BB&L%'Eÿ#$@$"C"'$#ÿ@R&!$ÿ'@'A%@Bÿ#$@$"C"'$#ÿ@'>ÿ="N&=$'Eÿ#$@'>@=>#ÿ%#ÿefghiÿ@AA!=@$"j

4-ÿ-3ÿ+,6ÿL4,/8

QCÿH0Iÿ)3FE*JÿDÿ+Fÿ34ÿU@ÿ3ÿCÿDFÿ*D34ÿ

@*)*F3+T

QCÿE*4ÿV@*A3ADVÿÿ4ÿA>ÿCÿGH0Iÿÿ4)ÿ3ÿ34ÿD3ADT

WU@D33

)*+ÿÿ)3+3Dÿ3FÿDFÿ+D4ÿYÿQCÿH0Iÿ)3FE*JÿDÿ+Fÿ34ÿU@ÿ3ÿCÿDFÿ*D34

ÿ@*)*F3+ZÿECDÿCÿGH0Iÿ)3FE*Jÿÿ*RZÿU@Zÿ53ZÿZÿ34ÿ+F@*CRÿ+FTÿYÿGH0I4)ÿ3ÿ3ÿ3ÿ3ÿ)*ÿ+F+ÿA)ÿEC*ÿH0Iÿ4)ÿ3ÿ3ÿ**+ÿ)FÿEC+Cÿ3ÿ)*ÿ+F+ÿA)

U@+4Tÿ&YÿQCÿE*4ÿV@*A3ADVÿÿ4ÿA>ÿCÿGH0Iÿÿ4)ÿ3ÿ34ÿD3ADTÿYÿQCÿGH0Iÿ)3FE*Jÿ4ÿÿ3DDE

343*4Tÿ(5D3*>ÿ3C*Zÿ+Cÿ3ÿCÿ0+*ÿ34ÿWU+C35ÿ?FFÿX0W?YÿÿCÿ^T0Tÿ34ÿCÿG3+3D0*R+ÿHC*>ÿXG0HYÿÿCÿ^4ÿ=54FZÿ3*ÿ3ADC4ÿA>ÿ33Dÿ5R*FTÿ_ÿ33Dÿ3C*ÿAD5ÿÿC

*33Dÿ7*53\3ÿ)ÿ0+*ÿ?FFÿX70?7YT

()*+

01234567ÿ,-6./ÿ0ÿ1ÿ2ÿ(345ÿ&ÿ2ÿ670ÿA

01234567ÿ<=6>?ÿ@ÿAÿBÿ;)1.ÿCÿBÿDE@ÿ1

F2GH42IÿJH42=5HG?

K5ÿL,'ÿ-5ÿDE@

01234567ÿEF6GHÿ3ÿIÿJÿ2,0+ÿKLÿJÿMN3ÿ(

O2PQ42RÿSQ42F5QPH

TDÿU'.ÿ4DÿMN3

%&'&ÿ(ÿ&ÿ())*+ÿÿVWXYZÿ[)Dÿÿ4ÿ'0-0ÿ,ÿ,0ÿ+,)ÿ(ÿ&ÿ-,,)ÿ8''+ÿ3,0,-0ÿ\,-0ÿB83\C:

=).ÿ+)4,)ÿ,''+ÿ,0,-0ÿ->-+ÿ,.,-'DAÿ'/.,-,4)DAÿ,0ÿ&+&

ÿSTUVÿ>233567ÿWÿXÿR20<57/ÿY(ÿXÿZ[>ÿ,

\]^_ÿ`^T^]V

P23ÿL67+2243ÿH3ÿZ[>

01234567ÿMN6OPÿEÿQÿRÿD+48ÿS'ÿRÿTUEÿ+