CAF-1 · Chapter 11 · Question 14 of 15
An entity discovers a material limitation preventing it from complying with a specific requirement in an IFRS standard. What is the entity expected to do?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Disclose the information required by IFRSs not presented elsewhere, and explain the basis of preparation.
Explanation
The notes must present information about the basis of preparation, specific policies used, and provide information required by IFRSs not presented elsewhere, ensuring fair presentation.
More IAS 1 Presentation of Financial Statements MCQs
- Q1According to IAS 1, which of the following is NOT an obligatory component of a complete set of financial statements?
- Q2Under what circumstance must an entity present an additional (third) statement of financial position as at the beginning of the preceding…
- Q3How does IAS 1 require the financial statements within a complete set to be presented regarding their importance?
- Q4Alpha Corp has a slow-moving inventory item that is expected to be sold 18 months after the reporting date. How should this be classified…
- Q5Which of the following line items is explicitly REQUIRED by IAS 1 to be presented in the statement of profit or loss?