POINTS ON ADDITIONAL INFORMATION 5 TO ICAN QUESTION


Now to the fifth additional information in the question; 


a.    Summary of additional information 5:

Here, a loan to a director of Barewa was included in cash and cash equivalent. And the directors feel that there is no cause for alarm since the loan is repayable on demand and there is no IFRS that prohibits the use of this policy of classifying the loan to the director as cash and cash equivalents.

b.    Explanation on what to do about additional information 5:

Here, there is no issue at all as IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors permits organization to develop accounting policies with reference to the frameworks, accounting literatures, accepted industry practices etc where there is no specific IFRS that addresses the issue as we have in this case.
The only relevant matter is that this policy must be consistently applied or used. And it should also be disclosed in Statement of Significant Accounting Policies under the notes to the accounts.

c.     Working note on additional information 5:

No working note is required.

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