One Condition Required by IFRS Is That a Voluntary Change

question 49

Multiple Choice

One condition required by IFRS is that a voluntary change in accounting policy must result in information that is

• A) more reliable than before.
• B) more reliable, but equally as relevant as before.
• C) both more reliable and more relevant.
• D) more relevant, but equally as reliable as before.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts and their balances after adjustments, used to ensure that debit and credit balances are equal before generating financial statements.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, ensuring the accounts reflect these adjustments before financial statements are prepared.

Asset Balances

The value of different types of assets that a company owns, as recorded in the balance sheet at a particular point in time.

Liability Balances

The amount of money a company owes to creditors or other parties, reflected in its balance sheet.