Judgement Case 1

Judgement Case 2

Judgement Case 1

Judgement Case 2

Judgment and Applied Financial Accounting Research CASES Judgment Cases Judgment Case 1 Judgment and Estimation Unlike US GAARIFRS requires that an entity discloselal management's judgments with the most significant effect on the financial statements, and b informationabout the majorsources of estimation uncertainty that may resultinamaterial adjustment to the carrying valaesofthe entity's assets and liabilities These disklosure inkluded in LAS Financial Statements Paragraph 122 contains the require- requiremen ment related to judgments and paragraph 25 contains the requirement related to estimation uncertainty. Read paragraphs 122 through 133 and paragraph BCS3 of IAS What are the two examples judgment that could have a signifikantimpactonthefinancialstatements 2 What are four examples of estimation unc ertainty that could result in a material adjustment in future Consider an entity that reports an asset at fir valar,where the fair value is based on recently observed market prices. If it is likely that this value might change significantly within the next year, should the entity disclose the estimation uncertainty? Explain your answer. Read paragraph OR11 of Statement of Financial Accounting Concepts No 8 Comarprawal Framework for Financial Reporting Chapter The oljective of General Parpose Financial Reparting, and Chaper 3. Qualitative CharacteristisofUsefil Financial ligformation. What does FASB say about the degree to which the balance sheet is made up of estimates, as opposed to exact depictions of the underlying economi posi tion of the entity? Part 2 The disclosures related to critical accounting estimates and jadgments were previously seen in Eahibi 32for Telefonaktiebolaget LMEricauan (Eriksson). The balance sheets are presented below and on the following page. Focusing on Ericssonk assets do you agree with the FASBsassessment about the degree to which the balance sheet is made up of estimates? Explain your answer 31, 2013 CONSOLIDATI 31, SEK million 2013 2012 Non-current assets C10 Capitalized development expenses Intellectual property rights, brands and other 12,815 Property, plant and equipment C26, C27 Equity in joint ventures and associated companies 2842 Other investments in shares and participations Customer finance receivables, non-current C12 Other financial assets, C12 Deferred tax assets SEK 7829 SEK 81,712 Judgment and Applied Financial Accounting Research CASES Judgment Cases Judgment Case 1 Judgment and Estimation Unlike US GAARIFRS requires that an entity discloselal management's judgments with the most significant effect on the financial statements, and b informationabout the majorsources of estimation uncertainty that may resultinamaterial adjustment to the carrying valaesofthe entity's assets and liabilities These disklosure inkluded in LAS Financial Statements Paragraph 122 contains the require- requiremen ment related to judgments and paragraph 25 contains the requirement related to estimation uncertainty. Read paragraphs 122 through 133 and paragraph BCS3 of IAS What are the two examples judgment that could have a signifikantimpactonthefinancialstatements 2 What are four examples of estimation unc ertainty that could result in a material adjustment in future Consider an entity that reports an asset at fir valar,where the fair value is based on recently observed market prices. If it is likely that this value might change significantly within the next year, should the entity disclose the estimation uncertainty? Explain your answer. Read paragraph OR11 of Statement of Financial Accounting Concepts No 8 Comarprawal Framework for Financial Reporting Chapter The oljective of General Parpose Financial Reparting, and Chaper 3. Qualitative CharacteristisofUsefil Financial ligformation. What does FASB say about the degree to which the balance sheet is made up of estimates, as opposed to exact depictions of the underlying economi posi tion of the entity? Part 2 The disclosures related to critical accounting estimates and jadgments were previously seen in Eahibi 32for Telefonaktiebolaget LMEricauan (Eriksson). The balance sheets are presented below and on the following page. Focusing on Ericssonk assets do you agree with the FASBsassessment about the degree to which the balance sheet is made up of estimates? Explain your answer 31, 2013 CONSOLIDATI 31, SEK million 2013 2012 Non-current assets C10 Capitalized development expenses Intellectual property rights, brands and other 12,815 Property, plant and equipment C26, C27 Equity in joint ventures and associated companies 2842 Other investments in shares and participations Customer finance receivables, non-current C12 Other financial assets, C12 Deferred tax assets SEK 7829 SEK 81,712