Which statements are correct? Statement 1: Financial statements must be prepared by a publicly-listed entity at least semiannually. Statement 2: An entity shall present the income statement more prominently. Statement 3: Revenues are income that arises from the ordinary course of business activities. Statement 4: Revenues may arise from decrease in liability from primary operations. Statement 5: Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received. Statement 6: Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses. Statement 7: Under the transactions approach, net income is computed as the excess of income over expenses. Statement 8: Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Statement 9: Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. Statement 10: The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. Statement 11: The systematic manner of presentation of Notes to Financial Statement is mandatory, as far as practicable. Statement 12: The first item to be presented in the Notes to Financial Statement is the statement of compliance with PFRS. Statement 13: The cross reference between each line item in the Financial Statement and any related information disclosed in the Notes to Financial Statement is mandatory. Statement 14: A change in accounting estimate is accounted for as a prior period adjustment to the opening balance of retained earnings. Statement 15: A change in depreciation method is to be treated as a change in accounting policy. Statement 16: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. Statement 17: Preference share dividend appear under the retained earnings section of the statement of changes in equity.
Which statements are correct?
Statement 1: Financial statements must be prepared by a publicly-listed entity at least semiannually.
Statement 2: An entity shall present the income statement more prominently.
Statement 3: Revenues are income that arises from the ordinary course of business activities.
Statement 4: Revenues may arise from decrease in liability from primary operations.
Statement 5: Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.
Statement 6: Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.
Statement 7: Under the transactions approach, net income is computed as the excess of income over expenses.
Statement 8: Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners.
Statement 9: Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation.
Statement 10: The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss.
Statement 11: The systematic manner of presentation of Notes to Financial Statement is mandatory, as far as practicable.
Statement 12: The first item to be presented in the Notes to Financial Statement is the statement of compliance with PFRS.
Statement 13: The cross reference between each line item in the Financial Statement and any related information disclosed in the Notes to Financial Statement is mandatory.
Statement 14: A change in accounting estimate is accounted for as a prior period adjustment to the opening balance of
Statement 15: A change in depreciation method is to be treated as a change in accounting policy.
Statement 16: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity.
Statement 17:
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