Which of the following is not a required disclosure under PAS 1?
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: What are management’s responsibilities under Sections 302 and 404?
A: Internal control: Internal control is a process which ensures continuous reliability of…
Q: What are the requirements for nonattest engagements?
A: Non-attest engagements or services The non-attest services are the engagements with a client and…
Q: Name and explain different disclosure practice.
A: Disclosure accounting refers to displaying important information for investors. It is important for…
Q: Explain how materiality affectsaudit reporting decisions.
A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…
Q: Which of the following is not a required fi nancial statement according to IAS No. 1? A . Statement…
A: IAS 1 deals with the presentation of FS (financial statements). This standard explains all the rules…
Q: Defihe and explain -An agreement that violate statute - An agreement that violate public policy…
A:
Q: which is the primary source of SEC independence rules
A: The primary SEC sources that auditor independence for issuance are
Q: Which of the following is not considered as a characteristic of a liability?
A: The balance sheet comprises two-part, what the company owns (Assets) and what the company owes…
Q: Describe about the full disclosure principle. Also tell the different ways in which information is…
A: Full disclosure principle: According to the principle of full disclosure, all the events occurred in…
Q: nonrecurring
A: Extraordinary things vs. Nonrecurring Items: an summaryExtraordinary things area unit gains or…
Q: What is the guiding objective is that lessees and lessors provide disclosures?
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…
Q: Explain in detail Full disclosure principle with example.
A: The full disclosure concept or norm is an idea that allows a company to disclose all basic facts…
Q: Which of the following would be an example of a reasonable assurance engagement?
A: The audit is done in order to review the financial statement and finds the errors and misstatement…
Q: Define Full-disclosure principle.
A: Accounting: It refers to the process of recording the transactions of the business in a systematic…
Q: Q1 (a) What attributes should an item or transaction exhibit in order to be classified as a…
A: Liability is an obligation which is to be paid at some future date. It is shown in the balance…
Q: What is non-posted interest on statements? Please explain.
A: The answer is stated below:
Q: what is the advantages and disadvantage of disclosure? and why is disclosure important?
A: The full disclosure means that company's financial statements should tell about all the important…
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: Explain the concept of adequate disclosure.
A: Definition: Adequate Disclosures: In accounting, there is a need for adequate disclosures as these…
Q: In the Framework, it is possible that an entity may not disclose relevant information. Why?
A: The <IR> Framework is the International Integrated Reporting Framework, which presides over…
Q: Which of the following is an exception for application of IFRS 15? Oa. Insurance contracts. O b.…
A: Following are some exclusions from IFRS 15: Leases (IAS 17 or IFRS 16) Financial instruments and…
Q: In addition to EPS numbers themselves, what additional disclosures should be provided concerning the…
A: Earning per share (EPS) refers to the measure of earnings that are available to each share in a…
Q: Is the threshold for recognizing a provision under IFRS different than it is under U.S.GAAP?…
A:
Q: What is ESG reporting and why does it matter?
A: Transparency on ecological and socially responsible actions is becoming more popular. Environmental,…
Q: Describe required fair value disclosures.
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: I. A provision is a present obligation which may either be legal or constructive. II. Even if a…
A: As per IAS 37 Provisions, Contingent Liabilities and Contingent Assets, A provision is a present…
Q: Which method(s) are required for external reporting? For internal reporting?
A:
Q: What is TDS on commission, what is stated under section 194 H?
A: The income statement of the company will be prepared, and maintained by the management which will…
Q: Which of the following is not an issue associated with liabilities?
A: Liabilities: Liabilities are the obligation of the business or amount payable by the business.…
Q: Which of the following is not a secondary mode of extinguishing obligations? * Changing the object…
A: Primary obligations is prescription Which means time limit to sue in the court of law. prescription…
Q: Which of the following mistakes that does NOT render an agreement defective?
A: The Agreement would be defective under following condition: 1. The Subject matter of the contract…
Q: Why does the exclusion of the preemptive right ordinarily inconsequential?
A: Preemptive Rights: It is a contractual clause that gives the shareholders right or allows them to…
Q: Distinguish between common law liability and statutory law liability?
A: Auditor: The person who is considered responsible for assessing the credibility of the financial…
Q: For what purpose Form 2553 is required?
A: Form 2553 By completing IRS Form 2553, Election by a Small Business Corporation, businesses…
Q: How might exclusion clauses be found to be unenforceable?
A: Exclusion clause is defined as the term of contract that looks for restricting or excluding the…
Q: Which of the following is not a condition in identifying the contract with the customer as per IFRS…
A: IFRS 15 establishea the principles that an entity applies when reporting information avout the…
Q: Under what conditions should a provision be recorded?
A: Provision: A provision is an account that records a liability of an organization. The liability is…
Q: Which of the five disclosures is most informative? Which is least informative? Why?
A: Full disclosure: Full disclosure is an accounting principle which states that all the necessary…
Q: What is the full disclosure principle?
A: Principles are followed by the business for preparing financial reports.
Q: n the case of a non-adjusting event, IAS 10 requires it to be: Select one alternative: disclosed…
A: Solution: In the case of a non-adjusting event, IAS 10 requires it to be "disclosed by way of note…
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- The accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through c.), indicate whether the auditor should add a paragraph to the audit report, assuming that the change had a material effect on the financial statements and was properly justified, accounted for, and disclosed. Assume that the organization is a U.S. non-public company. a. Change from one GAAP to another GAAP b. Change in accounting estimate not affected by a change in accounting principle c. Change in accounting estimate affected by a change in accounting principle d. Correction of an error c. Change from non-GAAP to GAAP (a special case of correction of an error)Under IFRS, changes in accounting policies are a. permitted if the change will result in a more reliable and more relevant presentation of the financial statements. b. permitted if the entity encounters new transactions, events, or conditions that are substantively different from existing or previous transactions. c. required on material transactions, if the entity had previously accounted for similar, though immaterial, transactions under an unacceptable accounting method. d. required if an alternate accounting policy gives rise to a material change in assets, liabilities, or the current- year net income.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 necessary
- 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 of the following statements about Accounting Changes isincorrect? A. When retrospective application is impracticable, the entity shall apply the new policy as at the beginning of the earliest period for which restatement is practicable, which may be the current period. A corresponding adjustment to each affected component of equity affected shall be made. B. Retrospective application is applying the new policy to the transactions, other events and conditions occurring after the date as at which the policy is changed and recognizing the effect of the change in the accounting estimate in the current and future periods affected by the change. C. An entity shall correct material prior period errors retrospectively in the first set of financial statements authorized for issue after their discovery by restating the comparative amounts for the prior period(s) presented in which the error occurred. D. Changes in accounting policies do not include applying an accounting policy for…
- Which of the following statements about Accounting Changes is incorrect? When retrospective application is impracticable, the entity shall apply the new policy as at the beginning of the earliest period for which restatement is practicable, which may be the current period. A corresponding adjustment to each affected component of equity affected shall be made. Retrospective application is applying the new policy to the transactions, other events and conditions occurring after the date as at which the policy is changed and recognizing the effect of the change in the accounting estimate in the current and future periods affected by the change. An entity shall correct material prior period errors retrospectively in the first set of financial statements authorized for issue after their discovery by restating the comparative amounts for the prior period(s) presented in which the error occurred. Changes in accounting policies do not include applying an…Changes in accounting policy are Permitted if the change will result in a more reliable and more relevant presentation of the financial statements. Permitted if the entity encounters new transactions, events or conditions that are substantively different from existing or previous transactions. Required for all material transactions. Required if an alternate accounting policy gives rise to a material change in assets, liabilities or the current year net income.According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must select and apply its accounting policies consistently from one period to the next and among various items in the financial statements. However, an entity may change its accounting policies under certain conditions. Required: Identify the circumstances under which it may be appropriate to change accounting policy in accordance with the guidance given in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
- describe the fi nancial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, unusual or infrequent items) and changes in accounting standardsIf an entity does not prepare interim financial reports A. The year-end financial statements are deemed not to comply with PFRS.B. The year-end financial statements’ compliance with PFRS is not affectedC. The year-end financial statements shall not be acceptable under local jurisdictionD. Interim financial reports shall be included in the year-end financial statementsIf a company registered with the SEC justifies a change in accounting method as preferable under the circumstances, and the circumstances change, can that company switch back to its prior method of accounting before the change? Why or why not?