Which of the Following Statements Is Not in Accordance with IAS

question 48

Multiple Choice

Which of the following statements is not in accordance with IAS 1 Presentation of Financial Statements with respect to the statement of comprehensive income?

• A)An entity shall not present any items of income or expense as extraordinary items, in the statement of comprehensive income or the separate statement of profit and loss (if presented), or in the notes.
• B)An entity shall disclose the amount of income tax relating to each component of other comprehensive income, including reclassification adjustments, either in the statement of comprehensive income or in the notes.
• C)As a minimum, the statement of comprehensive income shall include line items of each component of other comprehensive income classified by nature.
• D)An entity shall recognise all items of income and expense in a period in profit or loss unless an International Financial Reporting Standard requires or permits otherwise, for example, the financial effect of changes in accounting estimates.

Calculate and understand the variance in investment returns.

Understand the difference between arithmetic and geometric average returns.

Calculate and interpret dividend yield.

Understand the concept and calculation of the bullwhip effect in supply chains.

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Definitions:

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Cognitive Biases

Misperceptions or misunderstandings that cause systematic errors. Most result either (1) from heuristics that are prone to systematic errors or (2) because the brain is attempting to solve a type of problem (such as a calculus problem) for which it was not evolutionarily evolved and for which it has little innate capability.

Media Coverage

The reporting and analysis of news and information by various media outlets, influencing public perception and awareness of events and issues.

Behavioral Economics

A field of economics that examines how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions.