BAW4614_C1&C2

Define Relevance

• The exercise of caution when making judgements under conditions of uncertainty

• Financial information that is complete, neutral and free from

  error.

• Financial information that is capable of making a difference in the decisions made by

  users.

In UK, financial reporting should comply with

• MFRS

• FRSs 100–105

• Companies Act 2006

Define Objectivity

• To be straightforward and honest in all professional and business relationships.

• Not to compromise professional or business judgements because of bias, conflict of

  interest or undue influence of others.

• To comply with relevant laws and regulations and avoid any conduct that the

  professional accountant knows or should know might discredit the profession.

IAS 12 requires any unpaid tax in respect of the current or prior periods to be recognised as a/an

• Asset

• Liability

• Equity

• Income

Dividends on shares classified as equity are treated as appropriations of profit and a reduction to retained earnings.

• True

• False