Round 1 — Understand
Read objective, scope, definitions and core principles. Summarise the standard in your own words and identify the decision points relevant to the transaction.
Round 2 — Apply
Prepare the calculation, journal entry, schedule, assumptions and disclosure. Link every material input to reliable evidence and assign an owner.
Round 3 — Challenge
Ask what could make the conclusion wrong: missing contract terms, outdated estimates, incorrect cut-off, inconsistent policy, unsupported probability or incomplete disclosure. Record the reviewer’s resolution.
Close sign-off
A complete file contains facts, standard reference, conclusion, calculation, entry, reconciliation, disclosure and approval. The animated notes on each AS page follow this same sequence.
Professional note: Apply the latest notified text, entity applicability and facts before approving an accounting conclusion.