Podcast
Questions and Answers
Which of the following statements is true about recognition in financial statements?
Which of the following statements is true about recognition in financial statements?
- Recognition does not require depicting the item in words and by a monetary amount.
- Recognition is not necessary for making financial information comparable and understandable.
- Recognition only involves including items in the statement of financial position.
- Recognition involves capturing an item that meets the definition of an element of financial statements. (correct)
What is the carrying amount of an asset, liability, or equity?
What is the carrying amount of an asset, liability, or equity?
- The total equity in the statement of financial position.
- The recognized changes in equity during the reporting period.
- The total assets minus total liabilities in the statement of financial position.
- The amount recognized in the statement of financial position. (correct)
How are recognized changes in equity during the reporting period calculated?
How are recognized changes in equity during the reporting period calculated?
- Income minus expenses recognized in the statement(s) of financial performance, plus contributions from holders of equity claims, minus distributions to holders of equity claims. (correct)
- Total assets minus total liabilities in the statement of financial position.
- The recognized changes in equity during the reporting period are not calculated.
- The total equity in the statement of financial position.
Which one of these is an example of a present right or present obligation?
Which one of these is an example of a present right or present obligation?
If an entity no longer controls a transferred component, what might be necessary to achieve the aims described in paragraph 5.27?
If an entity no longer controls a transferred component, what might be necessary to achieve the aims described in paragraph 5.27?
What is one of the procedures described in paragraph 5.28(c) that can support derecognition?
What is one of the procedures described in paragraph 5.28(c) that can support derecognition?
Which of the following statements is true about recognition of items in financial statements?
Which of the following statements is true about recognition of items in financial statements?
What is the purpose of matching costs with income in financial statements?
What is the purpose of matching costs with income in financial statements?
What is the criteria for recognition of items in the statement of financial position?
What is the criteria for recognition of items in the statement of financial position?
Why does cost constrain recognition decisions in financial reporting?
Why does cost constrain recognition decisions in financial reporting?
Which of the following is the definition of derecognition?
Which of the following is the definition of derecognition?
What is the purpose of accounting requirements for derecognition?
What is the purpose of accounting requirements for derecognition?
In what cases is derecognition of an asset or liability not appropriate?
In what cases is derecognition of an asset or liability not appropriate?
What might occur if derecognition of a transferred component is not faithfully represented?
What might occur if derecognition of a transferred component is not faithfully represented?
When may an entity need to provide information about an item in the notes, even if it is not recognized as an asset or liability?
When may an entity need to provide information about an item in the notes, even if it is not recognized as an asset or liability?
What information about an asset or liability may be relevant even if the probability of inflows or outflows of economic benefits is low?
What information about an asset or liability may be relevant even if the probability of inflows or outflows of economic benefits is low?
Why might the recognition of an asset or liability provide relevant information even if the probability of inflows or outflows of economic benefits is low?
Why might the recognition of an asset or liability provide relevant information even if the probability of inflows or outflows of economic benefits is low?
What is required for an asset or liability to be recognized?
What is required for an asset or liability to be recognized?
Which of the following statements is true about estimation in financial information preparation?
Which of the following statements is true about estimation in financial information preparation?
When may the level of uncertainty involved in estimating a measure of an asset or liability be so high that it may not provide a faithful representation?
When may the level of uncertainty involved in estimating a measure of an asset or liability be so high that it may not provide a faithful representation?
What should be done when an asset or liability is subject to high measurement uncertainty and there are different measures available?
What should be done when an asset or liability is subject to high measurement uncertainty and there are different measures available?
When may none of the available measures of an asset or liability provide useful information?
When may none of the available measures of an asset or liability provide useful information?
Which of the following is an example of a financial instrument that may give rise to present rights or present obligations?
Which of the following is an example of a financial instrument that may give rise to present rights or present obligations?
Under what circumstances might an entity need to continue recognizing a transferred component that it no longer controls?
Under what circumstances might an entity need to continue recognizing a transferred component that it no longer controls?
What is the purpose of the procedures described in paragraph 5.28(c) in relation to derecognition?
What is the purpose of the procedures described in paragraph 5.28(c) in relation to derecognition?
Which of the following statements is true about recognition in financial statements?
Which of the following statements is true about recognition in financial statements?
What is the purpose of matching costs with income in financial statements?
What is the purpose of matching costs with income in financial statements?
What is the carrying amount of an asset, liability, or equity?
What is the carrying amount of an asset, liability, or equity?
Which of the following statements is true about recognition in financial statements?
Which of the following statements is true about recognition in financial statements?
What is the criteria for recognition of items in the statement of financial position?
What is the criteria for recognition of items in the statement of financial position?
Why does cost constrain recognition decisions in financial reporting?
Why does cost constrain recognition decisions in financial reporting?
When may an entity need to provide information about an item in the notes, even if it is not recognized as an asset or liability?
When may an entity need to provide information about an item in the notes, even if it is not recognized as an asset or liability?
Which of the following is a reason why derecognition of an asset or liability may not provide a faithful representation of the entity's financial position?
Which of the following is a reason why derecognition of an asset or liability may not provide a faithful representation of the entity's financial position?
When does derecognition of an asset normally occur?
When does derecognition of an asset normally occur?
What does a complete depiction of an economic phenomenon in financial statements include?
What does a complete depiction of an economic phenomenon in financial statements include?
Which of the following is one of the aims achieved by accounting requirements for derecognition?
Which of the following is one of the aims achieved by accounting requirements for derecognition?
Which of the following factors may affect the relevance of information provided by recognition in financial statements?
Which of the following factors may affect the relevance of information provided by recognition in financial statements?
When might recognition of an asset or liability provide relevant information even if the probability of inflows or outflows of economic benefits is low?
When might recognition of an asset or liability provide relevant information even if the probability of inflows or outflows of economic benefits is low?
What is the importance of making information about an item sufficiently visible in the financial statements?
What is the importance of making information about an item sufficiently visible in the financial statements?
When might recognition of an asset or liability not provide a faithful representation of the transaction?
When might recognition of an asset or liability not provide a faithful representation of the transaction?
Which of the following circumstances may result in a high level of measurement uncertainty for estimating a measure of an asset or liability?
Which of the following circumstances may result in a high level of measurement uncertainty for estimating a measure of an asset or liability?
In which of the following cases would the most useful information be a measure that relies on a highly uncertain estimate?
In which of the following cases would the most useful information be a measure that relies on a highly uncertain estimate?
In limited circumstances, when would an asset or liability not be recognized?
In limited circumstances, when would an asset or liability not be recognized?
When assessing the recognition of an asset or liability, what factors need to be considered in addition to its description and measurement?
When assessing the recognition of an asset or liability, what factors need to be considered in addition to its description and measurement?
