Wattle Plc Is in the Process of Completing Its Financial

question 63

Multiple Choice

Wattle Plc is in the process of completing its financial reports for the period ended 30 June 2014 when its accountant completes the collection of information about the realisable value of inventory as at reporting date.A number of items are reflected at a cost greater than net realisable value with a material effect on the accounts.What treatment does IAS 10 require for this event?

• A)It should be disclosed in the Directors' Report.
• B)The effect on the accounts should be disclosed in the notes to the financial statements.
• C)No disclosure is required.
• D)The financial statements should be adjusted to reflect the impact of the event.

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Definitions:

Skewed Distribution

A statistical term for a distribution where the bulk of values are located on one side of the mean, resulting in a lack of symmetry.

Degree Of Variation

Degree Of Variation refers to the extent to which values of a particular variable or trait differ from each other in a set of data or population.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, often used in statistics.

Distribution Of Scores

Refers to the way in which scores are spread out or distributed across a range in a dataset.