Saturday, February 27, 2021

MCQ on Ind AS 8

 

…. are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

 

a)      Accounting policies

b)      Accounting estimates

c)      Accounting assumption

d)      None of the above

A ………………..is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities.

 

a)      Change in accounting policies

b)     Change in accounting estimate

c)      Change in accounting assumptions

d)      None of the above

 

…………….are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that: (a) was available when financial statements for those periods were approved for issue; and (b) could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.

 

a)      Prior period errors

b)      Accounting errors

c)      Accounting assumptions

d)      None of the above

Prior periods errors include the effects of

 

a)      Mathematical mistakes,

b)      Mistakes in applying accounting policies

c)      Oversights or misinterpretations of facts

d)     All of the above

 

 

 

 

 

 

 

……………is applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied.

 

a)      Retrospective application

b)      First time adoption

c)      Prospective application

d)      Likely Application

 

………….is correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occurred.

 

a)      Prior period error

b)     Retrospective restatement

c)      Retrospective application

d)      None of the above

 

As per Ind AS 8, when an Ind AS ………..applies to a transaction, other event or condition, the accounting policy or policies applied to that item shall be determined by applying the Ind AS.

 

a)      Vaguely

b)     Specifically

c)      Collectively

d)      None of the above

 

 

In making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in …………….order:

(a) the requirements in Ind ASs dealing with similar and related issues; and

(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework.

 

a)      Ascending

b)     Descending

c)      Either a or b

d)      None of the above

 

 

In making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in …………….order:

(a) the requirements in Ind ASs dealing with similar and related issues; and

(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework.

 

a)      Ascending

b)     Descending

c)      Either a or b

d)      None of the above

In making the judgement described in paragraph 10 of Ind AS 8, management shall refer to, and consider the applicability of which sources in descending order:

 

a)      the requirements in Ind ASs dealing with similar and related issues

b)      the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework

c)      Only a

d)     Both a and b

 

In making the judgement described in paragraph 10 of Ind AS 8, management may also consider:

 

a)      Most recent pronouncements of International Accounting Standards Board

b)      Most recent pronouncements of those of the other standard-setting bodies that use a similar conceptual framework to develop accounting standards, other accounting literature and accepted industry practices

c)      Only a

d)     Both a and b

 

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