1. INTERNATIONAL ACCOUNTING STANDARDS (IAS) AND THE INTERNATIONAL FINANCIAL REPORTING STANDARD FOR SMALL AND MEDIUM-SIZED ENTITIES (IFRS FOR SMES)

2. GENTLE REMINDERS

3. THE SYLLABUS IS AVAILABLE ONLINE BY FOLLOWING THESE STEPS  WWW.CXC.ORG WWW.CXC.ORG  EXAMINATIONS  CAPE SYLLABUSES  ACCOUNTING AND THE PDF FILE WILL BE DOWNLOADED

4. GENTLE REMINDERS THE SYLLABUS IS AVAILABLE ONLINE BY FOLLOWING THESE STEPS  WWW.CXC.ORG WWW.CXC.ORG  EXAMINATIONS  SUBJECT REPORT  CAPE  ACCOUNTING AND THE PDF FILE WILL BE DOWNLOADED (AVAILABLE FOR 2007 TO 2013)

5. GENTLE REMINDERS THE CONCEPTUAL FRAMEWORK OF ACCOUNTING - CHANGES  QUALITATIVE CHARACTERISTICS  UNDERSTANDABILITY & SUBSTANCE OVER FORM  ACCOUNTING PRINCIPLES, CONCEPTS AND CONVENTIONS – 8  THE IFRS FOR SMES 2009 WAS SENT BY EMAIL IN 2012 FROM NISA SEEPAUL

6. ONLINE SOURCES HTTP://WWW.IFRS.ORG :HTTP://WWW.IASPLUS.COM

7. INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) THE IASB ESTABLISHED IN 2001 TO REPLACE THE IASC STANDARD SETTING BODY – ORGANIZERS OF “DUE PROCESS” IT OPERATES UNDER THE IFRS FOUNDATION 14 MEMBERS EACH WITH A 5 YEAR TERM AND CAN BE EXTENDED FOR AN ADDITIONAL 3 YEARS REPRESENTATIVES OF 4 GROUPS PREPARES USERS AUDITORS ACADEMIA IFRS Foundation IASB

8. INTERNATIONAL ACCOUNTING STANDARDS (IAS S ) DEVELOPED FOR ALL BUSINESSES THAT PREPARE AND PRESENT GENERAL PURPOSE FINANCIAL STATEMENTS THEY ARE MANY WHICH ADD TO ITS COMPLEXITY USUALLY ADOPTED BY A JURISDICTION AS PART OF GAAP CONSTANTLY REVIEWED AND CONVERTED TO IFRS S MORE SUITED FOR LARGE COMPANIES – MULTINATIONAL CORPORATIONS (ABOUT 5% OF THE WORLD’S BUSINESSES)

9. INTERNATIONAL FINANCIAL REPORTING STANDARD FOR SMALL AND MEDIUM-SIZED ENTITIES (IFRS for SME S ) PURPOSE 90% - 95% OF THE WORLD’S BUSINESSES ARE SMES REFLECT THE NEEDS OF THE USERS ONE STANDARD - SIMPLIFICATION REDUCED COST FOR COMPLIANCE The IFRS for SMEs draw form the existing IASs and IFRSs and complies with the IASB’s Conceptual Framework

11. A FULL SET OF FINANCIAL STATEMENTS IAS 1 REQUIREMENTS STATEMENT OF FINANCIAL POSITION STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS NOTES TO THE ACCOUNTS (SIGNIFICANT ACCOUNTING POLICIES AND EXPLANATORY) IFRS FOR SMES SECTION A STATEMENT OF FINANCIAL POSITION AS AT THE REPORTING DATE. EITHER: (I) A SINGLE STATEMENT OF COMPREHENSIVE INCOME FOR THE REPORTING PERIOD DISPLAYING ALL ITEMS OF INCOME AND EXPENSE RECOGNISED DURING THE PERIOD INCLUDING THOSE ITEMS RECOGNISED IN DETERMINING PROFIT OR LOSS …. AND ITEMS OF OTHER COMPREHENSIVE INCOME, OR (II) A SEPARATE INCOME STATEMENT AND A SEPARATE STATEMENT OF COMPREHENSIVE INCOME….AND A STATEMENT OF COMPREHENSIVE INCOME, WHICH BEGINS WITH PROFIT OR LOSS AND THEN DISPLAYS THE ITEMS OF OTHER COMPREHENSIVE INCOME. A STATEMENT OF CHANGES IN EQUITY FOR THE REPORTING PERIOD. A STATEMENT OF CASH FLOWS FOR THE REPORTING PERIOD. NOTES, COMPRISING A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION.

12. THE STATEMENT OF COMPREHENSIVE INCOME (INCOME STATEMENT) ANALYSIS OF EXPENSES IAS 1 OR IFRS FOR SMES SECTION 5.11 AN ENTITY SHALL PRESENT AN ANALYSIS OF EXPENSES USING A CLASSIFICATION BASED ON EITHER THE NATURE OF EXPENSES OR THE FUNCTION OF EXPENSES WITHIN THE ENTITY, WHICHEVER PROVIDES INFORMATION THAT IS RELIABLE AND MORE RELEVANT.

13. THE STATEMENT OF COMPREHENSIVE INCOME (INCOME STATEMENT) BY NATURE COMPANY A INCOME STATEMENT FOR THE YEAR ENDED JUNE 31, 2011 SALES $305,610 EXPENSES: BEGINNING INVENTORY 16,800 PURCHASE 184,100 ENDING INVENTORY (21,050) DEPRECIATION EXPENSE 14,790 RENT EXPENSE 21,000 SALARIES AND WAGES EXPENSE 38,320 SUPPLIES EXPENSE 3,510 UTILITIES EXPENSE 6,900 INTEREST EXPENSE 375 TOTAL EXPENSES (264,745) NET INCOME$ 40,865 BY FUNCTION COMPANY A INCOME STATEMENT FOR THE YEAR ENDED JUNE 31, 2011 SALES$789,160 COST OF GOODS SOLD (445,940) GROSS PROFIT$343,220 OPERATING EXPENSES: SELLING EXPENSES$109,310 ADMINISTRATIVE EXPENSES 127,270 TOTAL OPERATING EXPENSE(236,580) OPERATING INCOME$106,640 OTHER INCOMES/EXPENSES: GAIN ON SALE OF EQUIPMENT $3,570 INTEREST EXPENSE (1,150) NET OTHER INCOMES/EXPENSES (2,420) NET INCOME$104,220

14. INVENTORIES DEFINITIONS OF INVENTORIES THEY ARE ASSETS HELD FOR SALE IN THE ORDINARY COURSE OF BUSINESS IN THE PROCESS OF PRODUCTION FOR SUCH SALE AND/OR IN THE FORM OF MATERIALS OR SUPPLIES TO BE CONSUMED IN THE PRODUCTION PROCESS OR IN RENDERING OF SERVICES COST OF INVENTORIES COST IS EXPENDITURE INCURRED IN BRINING THE PRODUCT OR SERVICE TO ITS PRESENT LOCATION AND CONDITION. IT INCLUDES THE 3 ELEMENTS 1.COST OF PURCHASE PURCHASE PRICE, IMPORT DUTIES, TRANSPORT AND HANDLING COSTS AND OTHER ATTRIBUTABLE COSTS INCLUDING TRADE DISCOUNTS COST OF INVENTORIES 3.OTHER COSTS MAY NEED TO BE INCLUDED SUCH AS COST OF DESIGNING PRODUCTS FOR SPECIFIC CUSTOMERS VALUATION OF INVENTORIES FIFO WEIGHTED AVERAGE THE LAST-IN, FIRST-OUT METHOD (LIFO) IS NOT PERMITTED BY THIS IFRS OR IAS 2 2.COST OF CONVERSION COST ATTRIBUTABLE TO UNITS – DIRECT LABOUR, RAW MATERIALS, EXPENSES AND SUBCONTRACT WORK PRODUCTION OVERHEADS OTHER OVERHEADS

15. INVENTORIES IAS 2 AND IFRS FOR SMES SECTION 13.13 SPECIFICALLY EXCLUDES 1.ABNORMAL AMOUNTS OF WASTED MATERIALS, LABOUR AND OTHER COSTS 2.STORAGE COST UNLESS NECESSARY IN THE PRODUCTION PROCESS BEFORE FURTHER PRODUCTION 3.ADMINISTRATIVE OVERHEADS THAT DO NOT CONTRIBUTE TO ANY VALUING OF INVENTORY 4.SELLING COSTS IAS 2 : INVENTORIES MUST BE STATED AT THE LOWER OF COST OR NET REALISABLE VALUE. NET REALISABLE VALUE IS THE ACTUAL OR ESTIMATED SELLING PRICE LESS: FURTHER COST TO COMPLETION ALL COSTS WHICH WILL BE INCURRED IN MARKETING, SELLING AND DISTRIBUTION AND IFRS FOR SMES SECTION 13.19 ……REQUIRE AN ENTITY TO ASSESS AT THE END OF EACH REPORTING PERIOD WHETHER ANY INVENTORIES ARE IMPAIRED, I.E. THE CARRYING AMOUNT IS NOT FULLY RECOVERABLE (E.G. BECAUSE OF DAMAGE, OBSOLESCENCE OR DECLINING SELLING PRICES). IF AN ITEM (OR GROUP OF ITEMS) OF INVENTORY IS IMPAIRED, THOSE PARAGRAPHS REQUIRE THE ENTITY TO MEASURE THE INVENTORY AT ITS SELLING PRICE LESS COSTS TO COMPLETE AND SELL, AND TO RECOGNISE AN IMPAIRMENT LOSS (IN THE NOTES TO THE ACCOUNTS).

16. REVENUE IAS 18 AND IFRS FOR SMES 23.1 IAS 18: REVENUE IS DEFINED AS THE GROSS INFLOW OF ECONOMIC BENEFITS DURING THE PERIOD ARISING IN THE COURSE OF ORDINARY ACTIVITIES OF AN ENTITY WHEN THOSE INFLOWS RESULT IN INCREASING EQUITY, OTHER THAN AN INCREASE RELATING TO A CONTRIBUTION FROM EQUITY PARTICIPANTS IFRS FOR SMES 23.3 AN ENTITY SHALL MEASURE REVENUE AT THE FAIR VALUE OF THE CONSIDERATION RECEIVED OR RECEIVABLE. (IT) TAKES INTO ACCOUNT THE AMOUNT OF ANY TRADE DISCOUNTS, PROMPT SETTLEMENT DISCOUNTS AND VOLUME REBATES ALLOWED BY THE ENTITY. IFRS FOR SMES 23.4 AN ENTITY SHALL INCLUDE IN REVENUE ONLY THE GROSS INFLOWS OF ECONOMIC BENEFITS RECEIVED AND RECEIVABLE BY THE ENTITY ON ITS OWN ACCOUNT. AN ENTITY SHALL EXCLUDE FROM REVENUE ALL AMOUNTS COLLECTED ON BEHALF OF THIRD PARTIES SUCH AS SALES TAXES, GOODS AND SERVICES TAXES AND VALUE ADDED TAXES. IN AN AGENCY RELATIONSHIP, AN ENTITY SHALL INCLUDE IN REVENUE ONLY THE AMOUNT OF ITS COMMISSION. THE AMOUNTS COLLECTED ON BEHALF OF THE PRINCIPAL ARE NOT REVENUE OF THE ENTITY

17. REVENUE IAS 18 AND IFRS FOR SMES 23.1 23.1 ………….REVENUE ARISING FROM THE FOLLOWING TRANSACTIONS AND EVENTS: (A) THE SALE OF GOODS (WHETHER PRODUCED BY THE ENTITY FOR THE PURPOSE OF SALE OR PURCHASED FOR RESALE). (B) THE RENDERING OF SERVICES. (C) CONSTRUCTION CONTRACTS IN WHICH THE ENTITY IS THE CONTRACTOR. (D) THE USE BY OTHERS OF ENTITY ASSETS YIELDING INTEREST, ROYALTIES OR DIVIDENDS.

18. REVENUE IAS 18 AND IFRS FOR SMES 23.10 AN ENTITY SHALL RECOGNISE REVENUE FROM THE SALE OF GOODS WHEN ALL THE FOLLOWING CONDITIONS ARE SATISFIED: THE ENTITY HAS TRANSFERRED TO THE BUYER THE SIGNIFICANT RISKS AND REWARDS OF OWNERSHIP OF THE GOODS. THE ENTITY RETAINS NEITHER CONTINUING MANAGERIAL INVOLVEMENT TO THE DEGREE USUALLY ASSOCIATED WITH OWNERSHIP NOR EFFECTIVE CONTROL OVER THE GOODS SOLD. THE AMOUNT OF REVENUE CAN BE MEASURED RELIABLY. IT IS PROBABLE THAT THE ECONOMIC BENEFITS ASSOCIATED WITH THE TRANSACTION WILL FLOW TO THE ENTITY. THE COSTS INCURRED OR TO BE INCURRED IN RESPECT OF THE TRANSACTION CAN BE MEASURED RELIABLY.

19. FINANCIAL STATEMENTS IAS AND IFRS FOR SMES IAS 1 16 1 IFRS FOR SMES SECTIONS 6 4 17 PAGES 93 - 96 22 DESCRIPTION STATEMENT OF CHANGES IN EQUITY AND STATEMENT OF COMPREHENSIVE INCOME AND STATEMENT OF RETAINED EARNINGS STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) PROPERTY, PLANT AND EQUIPMENT LIABILITIES AND EQUITY – CLASSIFICATION

20. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS IAS 37 AND IFRS FOR SMES SECTION 21 AN ENTITY SHALL RECOGNISE A PROVISION ONLY WHEN: (a)THE ENTITY HAS AN OBLIGATION AT THE REPORTING DATE AS A RESULT OF A PAST EVENT; (b)IT IS PROBABLE (IE MORE LIKELY THAN NOT) THAT THE ENTITY WILL BE REQUIRED TO TRANSFER ECONOMIC BENEFITS IN SETTLEMENT; AND (c)THE AMOUNT OF THE OBLIGATION CAN BE ESTIMATED RELIABLY.

21. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS IAS 37 AND IFRS FOR SMES SECTION 21 A CONTINGENT LIABILITY IS EITHER A POSSIBLE BUT UNCERTAIN OBLIGATION OR A PRESENT OBLIGATION THAT IS NOT RECOGNISED BECAUSE IT FAILS TO MEET ONE OR BOTH OF THE CONDITIONS (B) AND (C) ABOVE (I.E. OF THE PROVISION). DISCLOSURE OF A CONTINGENT LIABILITY IS REQUIRED BY SHOWING (A) AN ESTIMATE OF ITS FINANCIAL EFFECT; (B) AN INDICATION OF THE UNCERTAINTIES RELATING TO THE AMOUNT OR TIMING OF ANY OUTFLOW; AND (C) THE POSSIBILITY OF ANY REIMBURSEMENT. IF THE POSSIBILITY OF AN OUTFLOW OF RESOURCES IS REMOTE IT SHOULD NOT BE RECOGNISED.

22. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS IAS 37 AND IFRS FOR SMES SECTION 21 DISCLOSURES ABOUT CONTINGENT ASSETS IF AN INFLOW OF ECONOMIC BENEFITS IS PROBABLE (MORE LIKELY THAN NOT) BUT NOT VIRTUALLY CERTAIN, AN ENTITY SHALL DISCLOSE A DESCRIPTION OF THE NATURE OF THE CONTINGENT ASSETS AT THE END OF THE REPORTING PERIOD, AND, WHEN PRACTICABLE WITHOUT UNDUE COST OR EFFORT, AN ESTIMATE OF THEIR FINANCIAL EFFECT, MEASURED USING THE PRINCIPLES SET OUT IN SECTON 21.7–21.11. IF IT IS IMPRACTICABLE TO MAKE THIS DISCLOSURE, THAT FACT SHALL BE STATED.

23. EVENTS AFTER THE REPORTING PERIOD IAS 10 AND IFRS FOR SMES SECTION 32 EVENTS AFTER THE END OF THE REPORTING PERIOD DEFINED EVENTS AFTER THE END OF THE REPORTING PERIOD ARE THOSE EVENTS, FAVOURABLE AND UNFAVOURABLE, THAT OCCUR BETWEEN THE END OF THE REPORTING PERIOD AND THE DATE WHEN THE FINANCIAL STATEMENTS ARE AUTHORISED FOR ISSUE. THERE ARE TWO TYPES OF EVENTS: (A) THOSE THAT PROVIDE EVIDENCE OF CONDITIONS THAT EXISTED AT THE END OF THE REPORTING PERIOD (ADJUSTING EVENTS AFTER THE END OF THE REPORTING PERIOD), AND (B) THOSE THAT ARE INDICATIVE OF CONDITIONS THAT AROSE AFTER THE END OF THE REPORTING PERIOD (NON-ADJUSTING EVENTS AFTER THE END OF THE REPORTING PERIOD).

25. GENTLE REMINDERS