Which is NOT a criteria for recognition of financial information in the IFRS Conceptual Framework? A) The item is measurable without a high degree of uncertainty B) The amount must be measured at historical cost. C) The item provides relevant information about the element D) The item provides a faithful representation of the eleme

Which is NOT a criteria for recognition of financial information in the IFRS Conceptual Framework? A) The item is measurable without a high degree of uncertainty B) The amount must be measured at historical cost. C) The item provides relevant information about the element D) The item provides a faithful representation of the eleme

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 4MC

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Similar questions

Materiality is an entity-specific aspect of which of the qualitative characteristics of financial information? Select one: a. Understandibility b. Timeliness C. Relevance d. Verifiability
Which of the following sets includes only accounting assumptions and conventions? a. timeliness, prudence, historical cost, and neutrality b. matching, comparability, period of timem and reliability c. monetary unit, going concern, relevance, and materiality d. monetary unit, entity, going concern, and realization-recognition
The relevance of providing information in financial statements is subject to the constraint of a.Faithful representation b.Cost-benefit c.Comparability d.Reliability
Which of the following is not a pervasive expense recognition principle? a. immediate recognition b. systematic and rational allocation c. cash payment d. association of cause and effect
As part of the fundamental characteristic of relevance, an important component of relevance is materality. What does it mean when an item is "immaterial"? Is it usually reported in the financial statements/notes of the financial statements? Explain.
Explain the following measurement bases of the elements of financial statements andindicate how assets and liabilities are measured in each case:i. Historical cost ii. Current cost iii. Realisable value
Under Qualitative Characteristics of Useful Financial Information, which ofthe following is a qualitative characteristic associated with faithfulrepresentation:a. Completenessb. Free from errorc. Neutralityd. All the above
How can judgment and estimation affect information reported in the financial statements?
Fair value is a more relevant measure to use in Financial Reporting than Historical Cost. Discuss
What is meant by comparability when discussing Qualitative Characteristicsof Useful Financial Information:a. Information has predictive or confirmatory value.b. Information is reasonably free from error.c. Information that is measured and reported in a similar fashion acrosscompanies.d. Information is timely.
The main steps required in the preparation of a restated statement of financial position (in accordance with the requirements of IAS29) do not include: The restatement of non-monetary items carried at historical cost The restatement of monetary items The restatement of each component of equity The restatement of non-monetary items carried at a valuation
Explain what is meant by materiality in relation to financial statements and state two factors affecting the assessment of materiality.