A) an ideal measure of the 'well-offness' of a firm because income and expenses are clearly defined. B) only a measure of financial performance and therefore not useful in decision-making. C) directly affected by the accounting policy choices implemented by management. D) comparable across all firms as it is simply calculated by subtracting expense from revenues. A) an ideal measure of the 'well-offness' of a firm because income and expenses are clearly defined. B) only a measure of financial performance and therefore not useful in decision-making. C) directly affected by the accounting policy choices implemented by management. D) comparable across all firms as it is simply calculated by subtracting expense from revenues.

Exam 14: The Statement of Comprehensive Income and Statement of Changes in Equity

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Which of the following items does not give rise to a reclassification adjustment from components of other comprehensive income to profit and loss?

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(Multiple Choice)

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Question 1

Correct Answer:

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Where a change in accounting estimates occurs,the following should be disclosed:

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(Multiple Choice)

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Question 2

Correct Answer:

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Comprehensive income includes dividend payments to shareholders.

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(True/False)

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Question 3

Correct Answer:

Verified

False

An implication of the fact that traditional financial accounting is based on a model that emphasises property rights is that:

(Multiple Choice)

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Question 4

Discuss the accounting treatment prescribed by IAS 1 Presentation of Financial Statements for reclassification adjustments from components of other comprehensive income to profit and loss.

(Essay)

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Question 5

When there is a change made to the useful life of an asset:

(Multiple Choice)

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Question 6

Components of 'other comprehensive income' would include:

(Multiple Choice)

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Question 7

IAS 1 permits entities to present the components of other comprehensive income either before tax effects (gross presentation)or after their related tax effects (net presentation).

(True/False)

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Question 8

Amounts reclassified to profit or loss in the current period that were recognised in 'other comprehensive income' in the current or previous periods are known as a:

(Multiple Choice)

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Question 9

IAS 1 requires profit or loss and the total comprehensive income for the period reported on the face of the statement of comprehensive income to be disaggregated between the non-controlling interest and the owners of the parent.

(True/False)

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Question 10

Examples of classification of expenses by their nature are:

(Multiple Choice)

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Question 11

IFRS 2 requires that the fair value of the option issued as a share-based payment to an employee,be determined and this value be deemed to be the cost of the options.

(True/False)

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Question 12

Extraordinary items will be included in the statement of comprehensive income:

(Multiple Choice)

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Question 13

Which of the following items is not an example of items reportable under other comprehensive income?

(Multiple Choice)

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Question 14

IAS 1 permits an entity to present all items of income and expense recognised in a period to be presented in either the statement of comprehensive income or the statement of profit and loss.

(True/False)

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Question 15

Profit is:

(Multiple Choice)

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Question 16

A statement of comprehensive income that includes revenue,other income,employee benefits and costs,motor vehicle expenses would have been prepared using the:

(Multiple Choice)

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Question 17

All disclosure requirements that relate to an entity's profit or loss are included in IAS 1. FALSE

(Short Answer)

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Question 18

Changes in accounting estimates include:

(Multiple Choice)

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Question 19

When selecting a presentation format for the statement of comprehensive income management must select the one that is:

(Multiple Choice)

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Question 20

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Exam 14: The Statement of Comprehensive Income and Statement of Changes in Equity

Which of the following items does not give rise to a reclassification adjustment from components of other comprehensive income to profit and loss?

Where a change in accounting estimates occurs,the following should be disclosed:

Comprehensive income includes dividend payments to shareholders.

An implication of the fact that traditional financial accounting is based on a model that emphasises property rights is that:

Discuss the accounting treatment prescribed by IAS 1 Presentation of Financial Statements for reclassification adjustments from components of other comprehensive income to profit and loss.

When there is a change made to the useful life of an asset:

Components of 'other comprehensive income' would include:

IAS 1 permits entities to present the components of other comprehensive income either before tax effects (gross presentation)or after their related tax effects (net presentation).

Amounts reclassified to profit or loss in the current period that were recognised in 'other comprehensive income' in the current or previous periods are known as a:

IAS 1 requires profit or loss and the total comprehensive income for the period reported on the face of the statement of comprehensive income to be disaggregated between the non-controlling interest and the owners of the parent.

Examples of classification of expenses by their nature are:

IFRS 2 requires that the fair value of the option issued as a share-based payment to an employee,be determined and this value be deemed to be the cost of the options.

Extraordinary items will be included in the statement of comprehensive income:

Which of the following items is not an example of items reportable under other comprehensive income?

IAS 1 permits an entity to present all items of income and expense recognised in a period to be presented in either the statement of comprehensive income or the statement of profit and loss.

Profit is:

A statement of comprehensive income that includes revenue,other income,employee benefits and costs,motor vehicle expenses would have been prepared using the:

All disclosure requirements that relate to an entity's profit or loss are included in IAS 1. FALSE

Changes in accounting estimates include:

When selecting a presentation format for the statement of comprehensive income management must select the one that is:

An Overview of the International External Reporting Environment

The Conceptual Framework of Accounting and Its Relevance to Financial Reporting

Theories of Financial Accounting

An Overview of Accounting for Assets

Depreciation of Property, Plant and Equipment

Revaluations and Impairment Testing of Non-Current Assets

Inventory

Accounting for Intangibles

An Overview of Accounting for Liabilities

Accounting for Leases

Share Capital, Reserves and Share Options Employee Bonus Schemes

Accounting for Financial Instruments

Revenue Recognition Issues

Accounting for Income Taxes

The Statement of Cash Flows

Events Occurring After the Reporting Date

Related-Party Disclosures

Earnings Per Share

Further Consolidation Issues I: Accounting for Intragroup Transactions

Further Consolidation Issues II: Accounting for Non-Controlling Interests

Further Consolidation Issues III: Accounting for Indirect Ownership Interest

Accounting for Foreign Currency Transactions

Translating the Financial Statements of Foreign Operations

Accounting for Corporate Social Responsibility

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