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NEW QUESTION 48
A rules-based approach to standard setting

  • A. ensures there are no conflicts within accounting standards as each issue is handled just once.
  • B. provides a broad framework for standard setting.
  • C. helps a standard-setting body to prioritise matters.
  • D. prescribes standards that attempt to cover all eventualities a business may face.

Answer: D

 

NEW QUESTION 49
A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item ‘gain on sale of equipment’. This item will be shown in the statement of

  • A. cash flow.
  • B. financial position.
  • C. changes in equity.
  • D. comprehensive income.

Answer: D

 

NEW QUESTION 50
Which one of these is a key principle of good corporate governance?

  • A. effective communication with shareholders
  • B. non-disclosure of directors’ agency relationship with the company
  • C. restriction of shareholders’ rights in decision-making
  • D. effective management of the employees of the company

Answer: A

 

NEW QUESTION 51
Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?

  • A. fair value
  • B. current value
  • C. deprival value
  • D. current purchasing power

Answer: C

 

NEW QUESTION 52
The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the

  • A. International Accounting Board.
  • B. International Accounting Standards Board.
  • C. Centre on Transnational Corporations.
  • D. International Accounting Standards Committee.

Answer: B

 

NEW QUESTION 53
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