Question

Question 3 2 pts Which of the following statements is false? If an event that should be capitalised is deemed immaterial, then, according to IFRS, it must be expensed. The qualitative characteristic of relevance best justifies expensing an event that otherwise should be capitalised. O In New Zealand, large, non-publicly accountable, private sector for-profit entities have the choice of following Tier I or Tier II IFRS. In New Zealand, small, non-publicly accountable, private sector for-profit entities do not have to follow IFRS.

Answer 1

Answer: In New Zealand,small,non-publicly accountable, private sector for non-profit entities don't have to follows IFRS.

EXPLANATION:NZ IFRS is required for the following three categories of entities regardless of
whether their securities trade in a public market:
• entities that have public accountability (as defined);
• entities that are deemed to have public accountability. Such entities
include all public issuers of debt or equity securities, licensed
supervisors, registered all banks, deposit takers, insurance providers and
superannuation schemes; or
• for-profit public sector entities that are large (as defined).
Other for-profit entities with requirements to prepare general purpose
financial statements may elect to apply NZ IFRS with disclosure concessions.

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