23:50 M 3 all all 9. To meet the objectives of general-purpose financial reporting, a Standard sometimes contains requirements that depart from the Conceptual Framework 10. The Conceptual Framework is...

Extracted text: 23:50 M 3 all all 9. To meet the objectives of general-purpose financial reporting, a Standard sometimes contains requirements that depart from the Conceptual Framework 10. The Conceptual Framework is concerned with the provision of financial information to both external users and internal users PROBLEM 2: TRUE OR FALSE 1. The Conceptual Framework may be revised from time to time. Revisions in the Conceptual Framework automatically result to changes in the Standards 2. According to the revised Conceptual Framework, the asset is the right, while the liability is the obligation, rather than the ultimate inflows or outflows of economic benefits resulting from the asset or liability 3. Legal enforceability of a right, for example, ownership, is necessary for control over an economic resource to exist 4. According to the revised Conceptual Framework, an asset can exist even if the probability that it will provide înflows of future economic benefits is low, and even if the asset is subject to a high measurement uncertainty 5. According to the revised Conceptual Framework, what the entity controls are the right and not the ultimate inflows of future economic benefits that the economic resource may produce. 6. The Conceptual Framework defines income and expenses in terms of changes in assets and liabilities 7. Not all items that meet the definition of a financial statement element are recognized; they are recognized only if recognizing them will also result in relevant and II


Extracted text: 23:49 3 all ll No title PROBLEM 1; TRUE OR FALSE 1. All changes in an entity's economic resources and claims to those resources result from the entity's financial performance. 2. The qualitative characteristics of useful information apply only to the financial information provided in the financial statements 3. According to IFRS® Practice Statement 2 Making Materiality Judgments, the cost is an important consideration when making materiality judgments 4. When making materiality judgments, a quantitative assessment alone is not always sufficient to conclude that an item of information is not material 5. Materiality judgments apply only to items that are recognized - but not to those that are unrecognized 6. The more significant the qualitative factors are, the lower the quantitative thresholds will be, Thus, an item with a zero amount can be material in light of qualitative thresholds. 7. When making materiality judgments, an entity should judge an item's materiality only on its own and not in combination with other information in the complete set of financial statements 8. The Conceptual Framework and the Standards specify a uniform quantitative threshold for materiality eral-purpose financial contains requirements 9. To meet the objectives of reporting, a Standard some. II