Question

For the following statements, determine which word or phrase from the list below will best complete it. Note: Some words or phrases could be used more than once, and some might not be used.

must give information about the changes in economic resources and claims on the economic resources.

should not be used when liquidation is likely. ensures that the benefits of providing more information are greater than the cost of providing it.

when applied, financial statement users will find it useful to report assets at their carrying amount (cost less accumulated depreciation).

provides guidance in responding to new issues and developing new standards. assists accountants in determining an appropriate accounting treatment for each situation.

are also recognized as being standards in accounting. are affected by economic and political conditions, so will change over time. guides decisions about what to present in financial statements and how to communicate such information.

was applied when the ACSB adopted IFRS for public companies and ASPE for private companies.

Answer 1

As per HomeworkLib policy we are allowed to answer 4 sub-parts of one question

a) FInancial Statements

b) Going Concern

c) Cost Constraint

d) Full Disclosure

e) Conceptual Framework

Workings

a) Financial statement include income statement, balance sheet and cash flows. All these provide information on company's economic resources, change to them and also claim on them.

b) When liquidation is likely the going concern principle does not hold good.

c) As per the cost constraint priciple, the cost of financial reporting should be less than the benefit it provides.

d) Reporting carrying value and accumulated depreciations falls can be classfied in 2 ways: one that it provides more wholesome disclosure if we show both teh amounts separately. second, it also gives helps in giving presentation of the numbers and details.

e) Conceptual Framework as the name suggests helps in outlining the issues and lay a foundation for developing new standards.

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.