IFRS 10 Consolidated Financial Statements Prescribes That Intragroup Balances,transactions,income and Expenses

question 22

True/False

IFRS 10 Consolidated Financial Statements prescribes that intragroup balances,transactions,income and expenses be eliminated in full on consolidation.This requirement is consistent with the parent entity concept of consolidation.

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Definitions:

Standard Costs

Predetermined or budgeted costs for materials, labor, and overhead used for cost control and financial planning.

Materials Quantity Variance

The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected, or budgeted, cost.

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as indirect materials and utilities for machinery.