When Initial Application of an International Financial Reporting Standard Has

question 35

Multiple Choice

When initial application of an International Financial Reporting Standard has an effect on the current period or any prior period,would have such an effect except that it is impracticable to determine the amount of the adjustment,or might have an effect on future periods,an entity shall disclose:

• A)the title of the International Financial Reporting Standard.
• B)the nature of the change in accounting policy.
• C)when applicable, a description of the transitional provisions.
• D)all of the given answers.

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Definitions:

Activity Bases

In cost accounting, refers to a measurable unit such as machine hours or labor hours that is used to assign costs to activities.

Quality Inspections

The process of reviewing and testing products to ensure they meet the required safety and quality standards.

Machine Setups

The preparation and adjustments made to a machine before starting a production run, including configuration for new products or batches.

Product Costs

The total costs directly tied to the creation of a product, encompassing direct labor, direct materials, and manufacturing overhead.