CAF-1 · Chapter 11 · Question 2 of 15
Under what circumstance must an entity present an additional (third) statement of financial position as at the beginning of the preceding period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) When the entity makes a retrospective restatement of items or applies an accounting policy retrospectively.
Explanation
An additional statement of financial position at the beginning of the preceding period is required when an entity applies an accounting policy retrospectively or makes a retrospective restatement.
More IAS 1 Presentation of Financial Statements MCQs
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- Q5Which of the following line items is explicitly REQUIRED by IAS 1 to be presented in the statement of profit or loss?
- Q6Where should the amount of dividends recognized as distributions to owners during the period be presented?
- Q7When presenting the analysis of expenses in profit or loss, IAS 1 allows entities to classify expenses based on two methods. What are they?
- Q8Which of the following is NOT required to be displayed prominently identifying the financial statements?