Accounting Gaps - Accounting Theory

Is inventory measured at fair value, according to IAS 2?

• Ofcourse!

• No, it is always measured at cost

• Only if the firm chooses so

• None of the above

When is inventory being recognized as an expense?

• When it is purchased

• When it is sold

• When it fair value decreases

• Non of the above

The IASB justifies continuation of a cost-based approach on the grounds that 'inventory typically cannot be sold to a customer, except by making extensive use of the entity's other economic resources'. Is that principle consistent with other standards?

• Yes

• No

Please pick the correct statement:

• The Framework defines the elements of the financial statements

• The Framework does not provide recognition criteria for assets and liabilities

• The framework is discussing the direct measurement of income or expenses

• None of the above

Does the framework provide guidance on what pattern of consumption the depreciation process should reflect?

• Yes

• No

• Maybe

One can claim that accelerated depreciation methods mimic fair value changes

• True

• False

The framework is being anchored first and foremost...

• In the balance sheet

• In the statement of comprehensive income

• In the statement of cash flows

• None of the above

Do the IFRS viewed as a high-quality standatds?

• Yes

• No

Please refer to the following statement: "The IFRS standards were developed largely outside of governmental bodies and were not designed primarily to meet political criteria or to correspond with tax accounting rules"

• False

• True

"The standards are largely designed to make financial statements reflect the legal form of a company's financial affairs"

• True

• False