The Relatively More Principles-Based IFRS Standards Requires Each of the Following

question 24

Multiple Choice

The relatively more principles-based IFRS standards requires each of the following except for:

• A) Professional judgment based on the substance over form concept
• B) Professional judgment in applying the true and fair view override
• C) Professional judgment at both the transaction and financial statement levels
• D) Professional judgment in applying the present fairly concept

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Definitions:

Marginal Costs

The additional cost incurred in the production of one more unit of a good or service.

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, or insurance.

Accounting Profit

Profits as shown on a company’s financial statements. Accounting profit does not necessarily correspond to real or economic profit.

Variable Costs

Costs that vary directly with the level of production or a company's output, such as materials and labor.