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- Outline the recognition criteria for the following elements of financial statements:
- Assets
- Liabilities
- Income
- Expenses
Step by step
Solved in 4 steps
- Define current assets and current liabilities. Why are current assets and current liabilities separated from noncurrent assets and long-term liabilities on the balance sheet?What is the purpose of the Income Summary account? How does it relate to the revenue and expense accounts?Explain the following measurement bases of the elements of financial statements andindicate how assets and liabilities are measured in each case:i. Historical cost ii. Current cost iii. Realisable value
- Define current assets. What basis is used for ordering individual items within the current assets section? How do current liabilities differ from long-term liabilities?major disclosure requirements for revenue accounts, capital. assets and liabilitiesWhat classes of assets and liabilities are shown on a typical classified balance sheet?
- Explain the following measurement bases of the elements of financial statements and indicate how assets and liabilities are measured in each case: 1. Historical cost 2. Current cost 3. Realisable valueUnder which of the following categories would Accounts Receivable appear? A. long−term assets B. current assets C. long−term liabilities D. current liabilitiesWhat are the classifications of financial assets in accordance with IFRS 9?
- Define receivables & explain its the classification in the statement of financial positionDistinguish between the revenue/expense and the asset/liability approaches to setting financial reportingstandardsc. Distinguish between financial assets and real assets for each of the followingcharacteristics. i. Divisibility ii. Marketability iii. Holding period iv. Information availability