1. What is a Directive?

2. What is the IAS Regulation?

3. What is the role of the IASB?

4. Name the primary financial statements and explain the purpose of each.

5. The following technical terms appear in this chapter. Check that you know the meaning of each. (If you cannot find them again in the text, they are defined at the end of the book.)

(a) revenue

(b) capital

(c) non-current asset

(d) depreciation

(e) directors

(f) earnings for equity holders (ordinary shareholders)

(g) earnings per share

(h) external users (of financial statements)

(i) financial position ( j) gross

(k) gross margin

(l) gross profit

(m) net

(n) net assets

(o) primary financial statements

(p) reserves

(q) revaluation reserve

(r) share premium

(s) property, plant and equipment

(t) revenue

6. How do companies report:

(a) financial position;

(b) performance; and

(c) changes in financial position?

7. What are the main headings to be found in most company statements of financial position?

8. In the Companies Act formats, what is the reason for the order of items under heading C: current assets?

9. What are the main headings to be found in most company income statements (profit and loss accounts)?

10. What are the main sections of a statement of cash flows prepared according to IAS 7?