accounting question: SAC3 & 4 and The Framework... (1 Viewer)

[Cookiez_n_Cream]

hey,

The Framework has replaced SAC3 (qualatative characteristics) & 4 (definition & recognition) ...

And with this there is a new element of prudence.

I've been searching the net for how prudence would be different but a lot of sites say it's immaterial ... like SAC already did imply prudence so no big dif...

I know that it helps with estimates so no understating or overstating of assets etc but what else?

Is that it ...

Damn this new IFRS!

 

[Minai]

"Prudence is the inclusion of a degree of caution in the excercise of judgements needed in making estimates required under conditions of uncertainty etc.." - Deegan 2005.

My textbook says that SAC3 and 4 were essentially the same as the new IASB f.w, but it there was no need to really consider it.

The only real difference I can see with SAC4 and the IASB framework is the IASB's term "income", which is different to the previous SAC4 definitions of "revenue", where now, income encompasses both revenue AND gains.

 

[theone123]

IFRS is cool :uhhuh:

 

[Minai]

IFRS is cool :uhhuh:

Not really.

eg, The treatment of prior period error recognition under IFRS is a step backward from the previous Australian standard.

 

[§eraphim]

Not really.

eg, The treatment of prior period error recognition under IFRS is a step backward from the previous Australian standard.

what about fair valuation of derivatives?