MC Question 1 - December 2014. Question 1 The Board proposes to amend paragraph 117 of IAS 1 to require entities to disclose their ‘material’ accounting policies instead of their ‘significant’ accounting policies. the building was The statement must show: [IAS 1.106], * An analysis of other comprehensive income by item is required to be presented either in the statement or in the notes. 5 million of equity share capital (shares of 50 cents each) in issue. If the annual reporting period changes and financial statements are prepared for a different period, the entity must disclose the reason for the change and state that amounts are not entirely comparable. Dissimilar items may be aggregated only if they are individually immaterial. Similarly IAS 1 should explicitly state an entity is to Financial statements cannot be described as complying with IFRSs unless they comply with all the requirements of IFRSs (which includes International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations). ... (IAS 1, Conc. IAS 1 – Presentation of Financial Statements, IAS 1 – Presentation of Financial Statements Quiz. An entity must disclose, in the summary of significant accounting policies or other notes, the judgements, apart from those involving estimations, that management has made in the process of applying the entity's accounting policies that have the most significant effect on the amounts recognised in the financial statements. Accounting policies are anything from rules, ... there is no guidance specifically tackling this question, but IAS 1 asks to categorize expenses either by nature or by function and logically, reversal of some previously recognized expense should be done under the same caption (also for comparability purposes). To meet that objective, financial statements provide information about an entity's: [IAS 1.9]. [IAS 1.82A]*. accounting policy disclosures are often uninformative restatements of the requirements of IFRS. [IAS 1.122]. IFRS IN PRACTICE 2019 fi IFRS 9 FINANCIAL INSTRUMENTS 5 1. Self constructed assets for an entityâs own use are accounted for in accordance with IAS 16 and are not within the scope of IAS 11 Construction Contracts. Do you agree with this proposed amendment? If you’d like to keep improving your knowledge of IFRS, sign up for a subscription where you can access all our questions. Accounting MCQ Questions and answers with easy and logical explanations. The publication does not cover all possible questions arising from the application of IAS 16, nor does it take account of any specific legal framework.