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Ninja FAR MCQ Question #190.
Based on the question below the correct answer reads “The first balance sheet must recognize all assets and liabilities as required by the IFRS and all assets and liabilities as required by the IFRS.”
What am I missing?
The first balance sheet must recognize all assets and liabilities as required by the IFRS and:
A. all assets and liabilities as required by the GAAP.
B. all assets and liabilities as required by the IFRS.
C. not recognize assets or liabilities not permitted by the GAAP.
D. None of the answer choices are required on the first balance sheet.
You answered C. The correct answer is B.
The first balance sheet must recognize all assets and liabilities as required by the IFRS and not recognize assets or liabilities not permitted by the IFRS. These asset and liabilities must be measured as required by the IFRS. These assets and liabilities must be classified as required by the IFRS. Disclosure must be made to explain how the transition from GAAP to the IFRS affects the financial statements. Where the compliance cost exceeds the benefit to the financial statement users, there are limited exceptions to these requirements.
FAR: 89
BEC: 88
REG: 81
AUD: 76CPAexcel, NINJA 10 point combo, & NINJA MCQ
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