One of Two Assumptions Made by the IASB Conceptual Framework

question 115

True/False

One of two assumptions made by the IASB conceptual framework is that the reporting entity is a going concern.

---

Definitions:

Interest Rate Risk Premiums

Additional returns demanded by investors to compensate for the risk of fluctuating interest rates.

D Credit Rating

A rating indicating that an entity is in default, having failed to fulfill its credit obligations, the lowest possible rating in assessments of credit risk.

Credit Rating

A formal assessment of an entity's ability to repay its debts, often in the form of a letter grade.

Term Structure

The relationship between interest rates or yields and different maturities for debt securities, often depicted as a yield curve.