Listed below are some comments on accounting concepts.1 Financial statements always treat the business as a separate
entity.2 Materiality means that only items having a physical existence may be recognised as assets.3 Provisions are
estimates and therefore can be altered to make the financial results of a business more attractive to investors.Which, if any,
of these comments is correct, according to the IASB's Conceptual Framework for Financial Reporting?
Statement
⑴ only is correct
(2) Materiality concerns whether an item in the financial statements can influence users’ decisions.
(3) Information should be a faithful representation of the economic phenomena it purports to represent.
This includes being neutral, ie without bias in the selection or presentation of the financial information. Therefore information must not be manipulated in any way in order to influence the decisions of the users.
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Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal
use?
According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful
representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error
Which of the following accounting concepts means that similar items should receive a similar accounting treatment?
Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy
Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for
Financial Reporting?
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