What drives the determination of the boundary of a reporting entity that is not a legal entity and does not comprise only legal entities all linked by a parent-subsidiary relationship? A. Management's choice B. Legal form of the reporting entity C. Information needs of the primary users of the reporting entity D. All of the above

Q: An entity shall determine whether a transaction or other event is a business combination by applying…

A: A transaction or event is determined as business combination if Assets and liabilities aquired…

Q: Prepare the reconciliations between segment information and amount shown in the entity's financial…

A: Segment reporting is one of the important concept used in financial reporting. Under this, some…

Q: A subsidiary is an entity that: Select one: a. Has the power to control a parent entity. b. Has…

A: The subsidiary company in a corporate world, belongs to another company, which are known as parent…

Q: Which form of business structure typically has the greatest potential for agency problems? Limited…

A: Sole proprietary is a form of business structure in which there is a single owner.

Q: An entity disclosing comparative information shall present, as a minimum ,all of the below items,…

A: According to IAS 1, Every company should disclose the comparative information of the previous year…

Q: your own research and critically examine the concepts of small proprietary company, large…

A: Proprietary company: A proprietary company can be defined as a private company which can be either…

Q: Which of the following is not required to be disclosed under PAS 24? *   A. A parent-subsidiary…

A: PAS 24 is accounting standard which tells about disclosures to be made for related party…

Q: Which of the following best indicates that two parties are related for purposes of PAS 24?   The…

A: Accounting standard means the standard which define how the accounting work flow in any country.…

Q: Discuss the significant of the following assumptions in the preparation of entity financial…

A: Accounting concepts paves the base for formulation of rules and regulations governing accounting…

Q: Describe characteristics of special-purpose entities and identify the required financial statements…

A: A special-purpose entity is also referred to as a special-purpose vehicle, which is defined as a…

Q: When selecting the most appropriate choice of business structure, some elements to consider are: A.…

A: Business structure is the outer framework of the business i.e. how the business is incorporated,…

Q: Management's expert refers to an individual or organization, whose work is used by the entity to…

A: Management experts are the individuals who possess expertise other than accounting or auditing and…

Q: consolidated financial statements

A: The related party transactions during the period should be disclosed in the group's consolidated…

Q: An entity presents an analysis of expenses using a classification based on: Group of answer choices…

A: In accordance with PAS 1, An Expenses recognized in Statement of profit or loss should be analyzed…

Q: . PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An…

A: Solution 1:  PAS 28 defines an ‘associate’ as "An entity over which the investor has significant…

Q: S1: Control is the power to govern the financial and operating policies of an entity so as to obtain…

A: Solution-D- Both Statement Are True   Statement 1- IAS 27 Consolidated and Separate Financial…

Q: Which is the first step within the hierarchy of guidance when selecting accounting policies? a.…

A: Accounting Policies - These are the fixed principles, concepts, rules, etc. which are used by a…

Q: How does this following assumptions relevant in the preparation of an entity’s financial statements:…

A: Assumption means the assertion which we take while preparing the financial statements.

Q: Auditor’s need to be diligent

A: The auditor undertakes the audit of financial statements to express an opinion whether they…

Q: An operating segment is a component of an entity: a. That engages in business activities from which…

A: Operating Segment - It is a component of an entity that fulfills all the following conditions; a)…

Q: Which is an incorrect statement below? A. The name of the parent and the ultimate parent of the…

A: The related party is the party that is directly or indirectly related to the company for which the…

Q: 4. An entity presents an analysis of expenses using a classification based on: a. The nature of…

A: Solution 4: As per IAS 1, "An entity presents an analysis of expenses using a classification based…

Q: As per ISA 570, Who of the following is responsible for assessing the entity going concern…

A: Auditor is the person who is responsible for performing audit work. Going concern assumption says…

Q: Which of the following statements is correct?

A: The question is regarding "Related Party disclosures".  IAS 24 provides that the financial…

Q: The purpose of the Conceptual Framework is: A. To assist the International Accounting Standards…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: What are variable interests in an entity and how might they provide financial control over an…

A: Variable interest is referred as the interest rate on loan or security that differ over the period…

Q: Segment reporting shall apply to A. Both the separate financial statements of an entity and the…

A: SOLUTION- IF AN ENTITY IS REQUIRED TO PRESENT BOTH CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS…

Q: How can the separate entity concept benefit each of the ff: A. creditors B. consumers  C.…

A: This concept of accounting means that the owners of business need to ensure that it records…

Q: xplain the corporate characteristic termed no mutual agency

A: One of the key features of a corporation is that of no mutual agency. The problem of mutual agency…

Q: The following information must be provided in the notes to the financial statements.

A: Notes to financial statements are important part of financial statements. This is also known as…

Q: US generally accepted accounting principles are currently developed by which entity? C . Th e Public…

A: Generally Accepted Accounting Principles (GAAP): It refers to accounting principles, standards and…

Q: The economic entity assumption requires that the activities Select one: a. of a sole proprietorship…

A: The economic entity is an accounting assumption followed by every organization. According to this…

Q: Which of the following is not an important factor to assess when identifying appropriate precedent…

A: The Precedent analysis is a valuation technique in which the past Merger and Acquisition…

Q: Which of the following factors are considered when analyzing an indistry? I-the nature and…

A: A company should analyse the industry with the help of the following factors: Restrictions of…

Q: Which of the following is not a required disclosure under PAS? *       Relationships between parents…

A: PAS are the accounting standards or rules or guidelines that are made to support the reporting…

Q: Provide justification for your recommendation to consolidate or not consolidate the entities in the…

A: The entity needs to prepare a consolidated financial statement if it controls the subsidiary entity.…

Q: Which is the first step within the hierarchy of guidance when selecting accounting policies? A.…

A: Accounting policy is the rule or method which is adapted by any entity to determine the error free…

Q: Explain what the separate entity assumption means whenit says a business is treated as separate from…

A: Accounting Assumption The accounting assumptions are the columns on which the accounting system is…

Q: Which accounting principle states that companies and owner should be treated as separate entities

A: A company is formed by the owner of the company but the owner is treated as separate entities and…

Q: the determination of the boundary of a reporting entity that is not a legal entity and does not…

A: A reporting entity refers to all those entities that prepare a financial report so that the related…

Q: Which one of the following states that business record must be supported by documentary evidence? O…

A: Business entity concept treat both owner and entity are different and the entity is a separate legal…

Q: xplain and apply the definition of a subsidiary within relevant accounting standards

A: A set of concepts, standards, and procedures that constitute the foundation of financial accounting…

Q: true or false According to PAS 19, an entity shall recognize the PV of DBO in its accounts and in…

A: PAS 19 - The main objective is to prescribe the accounting and disclosure for employee benefits. PV…

Q: Consolidation financial statements are prepared when a parent-subsidiary relationship exists in…

A: Financial statements show the financial performance/position of the business entity. It is prepared…