In the Framework, it is possible that an entity may not disclose relevant information. Why?
Q: In order to be relevant, financial information must have O neutrality. O confirmatory or predictive…
A: Financial information is the information regarding the financial aspects of business and this…
Q: Distinguish between responsibility, authority, and accountability.
A: Responsibility: When a sub-ordinate is obligated to perform the duties assigned to him, it becomes…
Q: Explain how the move towards greater use of fair value accountingmight increase information risk
A: Introduction: Information risk: Information Risk is the risk that the information based on which…
Q: What disclosure is made if a loss contingency is reasonably possible?
A: Contingent Liability: Contingent liability is one form of liability that arises based on a…
Q: A fair presentation is achieved by compliance with applicable IFRSs. A fair presentation also…
A: The term fair presentation refers to the true presentation of the material facts in the books and…
Q: Which of the following is not a required disclosure under PAS 1?
A: PAS 1 refers to the Philippine Accounting Standards as developed by the PFRS (The Philippine…
Q: Information is immaterial if omitting it or misstating it could influence decisions that users make…
A: Materiality is determined by considering both quantitative and qualitative factors.
Q: Which concept states that accounting information should be complete, neutral, and free from material…
A:
Q: describe the advantages of using a disregarded entity in assessing a choice of entity
A: The word disregarded entity means how the IRS can tax a single-member LLC. If the LLC is considered…
Q: When can a check be a negotiable instrument
A: In finance in general and in the world of banking, trade and commerce in particular checks and…
Q: What are disadvantages of external private audit?
A: External Audit refers to independent examination of financial statements of the organisations. These…
Q: Explain the phrase “Auditing and governing are not mutually exclusive”.
A: The auditing is the examination of financial statements with the audit evidence and forms opinions…
Q: Which may not be shown in an auditor's report of a non listed entity? A. Auditor's address B.…
A: This question is answered as per ISA 701
Q: What do we call it when one party has more information than the other party does in a transaction? O…
A: Option B is correct Asymmetric information, it is referred that when one party has more information…
Q: From the list of assertions provided, select the relevant assertion(s) to each control objective.…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Distinguish between a fictitious transaction and an artificial transaction?
A: The difference between fictitious transaction and an artificial transaction is based on the…
Q: Whether the act of overstating in revenue is considered and classified to be a significant risk.…
A: Revenue: Revenue is income earned by a firm selling its goods and services to other parties. The…
Q: why is the company unable to obtain sufficient assurance?
A: Here asking about the entity which can't be provide the sufficient assurance to the Auditing…
Q: In the absence of protocols, networks would be unusable. Describe the significance of these…
A: Answer: Concept: Network can be defined as the connection of devices sharing data provided under…
Q: Provide one example where information is not relevant but is faithfully represented.
A: Relevance is the primary characteristic of financial information which says that the information…
Q: What makes an account significant or an assertion relevant?
A: Significant Account An account is said to be significant when there is a chance that the account…
Q: How are non controlling intrerests (NCI) affected by intragroup transactions?
A: Non-controlling interests are the ownership is defined where the shareholder holds less than 50% of…
Q: Which of the following is not a related party as envisaged by PAS24?
A: The related party is the individual or entity that is related to the company. The individual or…
Q: What is the authoritative status of the Conceptual Framework? The Framework applies when FRSC…
A: The Conceptual Framework's main goals are to help users of financial reports comprehend the data in…
Q: Individual primary users have different and possibly conflicting information needs and desires. ,…
A: Since we answer only one question, we will answer the first one. Please resubmit the question. 9.…
Q: A company should disclose information only if the perceived benefits of the disclosure exceed the…
A: Given statement is: A company should disclose information only if the perceived benefits of the…
Q: Which of the following does not accurately summarize auditors’ requirements regarding internal…
A:
Q: termine ACA and TCSA of the entity? Provide example to explain your answer.
A: ACA and TCSA-: The capital profit (made in the CGT incident L3) is comparable to the difference…
Q: What do we call it when one party has more information than the other party does in a transaction? O…
A: B . Assymetric information
Q: How can the owners be disclaimers?
A: A disclaimer is a term utilized to define or restrict the range of duties and rights enforceable in…
Q: BARTLEBY should not be copied. Explain simply what accounting is
A: Accounting is a comprehensive word with various sub-branches such as cost accounting, management…
Q: Something is deemed to be 'material' if its omission, non-disclosure or misstatement is likely to…
A: Financial statements are statements that are prepared at the end of the period in order to analyse…
Q: What are potiental constaints/Risks when dealing in Tri Party Account Reconciliation and Process…
A: Tri Party Account Tri Party Account which is deal with the platform to outsource to the collateral…
Q: Which of the following factors are not relevant to the judgement involved in management's assessment…
A: A going concern is an accounting concept that refers to a corporation that is financially sound…
Q: Discuss the objectives of eliminating receiving functions. Also, discuss the accounting and audit…
A: Step 1 When shipments of goods arrived at the warehouse to replenish stocked inventory, then the…
Q: Provide one example of a threat to the Reporting objective and one example of a threat to the…
A: Answer: COSO framework is implemented so that there is proper internal control in any business…
Q: Which of the following management assertions is not associated with classes of transactions and…
A: Rights and obligations represent that the company has the right to use the assets and obligation to…
Q: Discuss the objective of eliminating the receiving function.What accounting/audit problems need to…
A: Auditing is the process of ensuring that an entity's financial records are correct and fairly…
Q: Which of the following is not an assertion relating to classes of transactions? Accuracy, Adequacy,…
A: Classes of transaction includes the transactions of the company which are grouped together for…
Q: How to ensure that overstatement as well as misstatements of account balances due to redundancy and…
A: Overstatement of account balances means reporting the account balances at an amount above the actual…
Q: Can a updated check be an negotiable instrument
A: Negotiable instrument refers to the instrument which guarantee the payment of particular amount that…
Q: Explain how to account for the impairment of a held-tomaturitydebt security.
A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…
Q: Accdg. to PAS , related party disclosures are necessary * to indicate the possibility that an…
A: Under the disclosure of related party, it requires disclosure of all the material in relation to the…
In the <IR> Framework, it is possible that an entity may not disclose relevant information. Why?
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- if an entity that meets IFRS requirements, decide to deviate from any IFRS statement, then the entity must?Accdg. to PAS , related party disclosures are necessary * to indicate the possibility that an entity's financial position and performance might have been affected by the existence of such relationship because related party transactions may have resulted to assets and liabilities that were recognized in the financial statements of the reporting entity to notify users of financial statements of the fact that related party transactions may not have been made on arm's length basis in order to eliminate or minimize the effects of related party transactions on the FS of the reporting entity1. Which statement is incorrect regarding materiality judgments? A. An entity is only required to apply recognition and measurement equirements in PFRSS when the effect of applying them material. B. An entity need not provide a disclosure specified by a PFRS if the information resulting from that disclosure is not material. C. Public availability of information relieves an entity of the obligation to provide material information in its financial statements. D. It is inappropriate for the entity to make, or leave uncorrected, immaterial departures from PFRSs to achieve a particular presentation of its financial position, financial performance or cash flows. 2. Which of the following is an appropriate aggregation? A. Cash and cash equivalents (Cash in bank and sinking fund) B. Trade and other receivables (Accounts receivable and investment in bonds) C. Trade and other payables (Accounts payable and accruals) D. Provisions (Income tax payable and warranty liability) 3. Which of the…
- Which method(s) are required for external reporting? For internal reporting?The following does not constitute fair presentation and compliance with IFRS:a) an entity rectify inappropriate accounting policies by additional disclosureb) an entity did not selectively apply standards it likesc) an entity follows the recognition criteria for assets, liabilities and expenses set out in the conceptual frameworkd) an entity apply IFRS, with additional disclosure when necessaryWhy an internal control system can only provide reasonable assurance on the achievement of an entity’s objectives?
- In accordance with AASB 9, the recognition of a financial asset or financial liability will be influenced by considerations as to whether there is a contractual right to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable, or potentially unfavourable, to the entity. Explain what this requirement means.Which may not be shown in an auditor's report of a non listed entity? A. Auditor's address B. Management responsibility paragraph C. Key audit matters paragraph D. Auditor's responsibility paragraphExplain the phrase “Auditing and governing are not mutually exclusive”.