Financial Reporting And Analysis - Financial Reporting And Analysis Section 1
12. Which of the following is least likely to be presented on an accrual basis?
- Option : A
- Explanation : All financial statements should be presented on an accrual basis, except cash flow information.
- Option : C
- Explanation : Fair presentation and going concern are features underlying the creation of financial statements. Minimum specified information on the face of financial statements falls under „Structure and Content‟, and not under „General Features.‟
- Option : C
- Explanation : The financial statement elements under International Financial Reporting Standards (IFRS) are: assets, liabilities, owners‟ equity, revenue, and expenses. Revenues are inflows of economic resources. Assets are economic resources, but not inflows.
- Option : C
- Explanation : Based on International Accounting Standard (IAS), general requirements for financial statements, fundamental principles include fair presentation, going concern, accrual basis, consistency and materiality.
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