Q2ISTQ - Intermediate Accounting (Kieso)

Question

Information in a company’s first IFRS statements must:

(a) have a cost that does not exceed the benefits.

(b) be transparent.

(c) provide a suitable starting point.

(d) All the above.

Step-by-Step Solution

Answer

The correct option is “d”.

Step 1: Explanation to correct option

As per the IFRS 1, First IFRS statements of company must include the expenses that are not greater by its benefits, must provide the starting point which is suitable, and also the information should be transparent, hence all of the above is correct option.

Step 2: Explanation to incorrect options

Option a) Information provided in First IFRS statement should be transparent and should provide suitable starting point also. 

Option b) As per the First IFRS statement, expenses should not be greater than by its benefits, and also it should indicate suitable beginning point

Option c) As per the First IFRS statement, expenses should not be greater than by its benefits, and also the information furnished should be transparent.