|
Financial statements of Kansas Ltd (Fr) for 2X13 are authorized by management and auditors on February 15, 2X13 for issuance on February 28, 2X13. On February 20, Kansas settles as a plaintiff (payer of settlement) a 5 million Euro lawsuit. CFO of Kansas Ltd (Fr) makes a second decision regarding the presentation of the financial statements and decides this settlement does not need to be recognized in 2X13. He is: a) In compliance with the IFRS b) Committing fraud c) Manipulating Data |
Solution: Manipulating data
Explanation: Claim settlement will result in an outflow from the entity of resources thus need to be presentated in the financial statements for providing an accurate information. Thus if the settlement is not recognized in 2X13 it will be termed the manipulation of data
Financial statements of Kansas Ltd (Fr) for 2X13 are authorized by management and auditors on February...
1*Financial statements of Kansas Ltd (Fr) for 2X13 are authorized by management and auditors on February 15, 2X13 for issuance on February 28, 2X13. On February 20, Kansas settles as a plaintiff (payer of settlement) a 5 million Euro lawsuit. CFO of Kansas Ltd (Fr) makes a second decision regarding the presentation of the financial statements and decides this settlement does not need to be recognized in 2X13. He is: a) In compliance with the IFRS b) Committing fraud c)...