BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The requirement and guidance in the standard or interpretation dealing with similar and related issue
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The definition, recognition criteria and measurement of asset, liability, income and expense in the Conceptual Framework
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Most recent pronouncements of other setting body
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Accounting literature and accepted industry practice
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Detailed explanation-1: -In the absence of an IFRS Standard that specifically applies to a transaction, other event or condition, management uses its judgement in developing and applying an accounting policy that results in information that is relevant and reliable.
Detailed explanation-2: -In the absence of IFRS that applies specifically to a transaction, what is the most authoritative source in developing and applying an accounting policy? The requirement and guidance in the standard or interpretation dealing with similar and related issues.
Detailed explanation-3: -When retrospective application or retrospective restatement would require making a significant estimate for which it is impossible to distinguish these two types of information, it is impracticable to apply the new accounting policy or correct the prior period error retrospectively.
Detailed explanation-4: -Retrospective application is applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied.
Detailed explanation-5: -IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction.