BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the first step within the hierarchy of guidance between selecting accounting policies?
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Apply a standard from IFRS if it specifically relates to the transaction
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Apply the requirements in IFRS dealing with similar and related issue
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Consider the applicability of the definitions, recognition criteria and measurement concepts in the Conceptual Framework
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Consider the most recent pronouncements of other standard setting bodies
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Explanation:
Detailed explanation-1: -Apply a standard from IFRS it it specially relates to the transaction . The management may use its own judgement in the development and application of those accounting policies. Option a and b are both correct, but the best answer is option a.
Detailed explanation-2: -Which is the first step within the hierarchy of guidance when selecting accounting policies? a. Apply a standard from IFRS if it specifically relates to the transaction.
Detailed explanation-3: -5. Adjustments required to move from previous GAAP to IFRS at the time of first-time adoption. These should be recognised directly in retained earnings or other appropriate category of equity at the date of transition to IFRS.
There is 1 question to complete.