Which of the Following Is Correct Regarding the Provisions of IAS

question 76

Multiple Choice

Which of the following is correct regarding the provisions of IAS No.8 on accounting changes and error corrections?

• A) IAS No.8 requires that correction of an error be made only by restatement of all prior periods presented.
• B) IAS No.8 requires correction of an error to be made only by reflecting the effect of the correction in income of the period in which the error was discovered without restating previously reported results.
• C) IAS No.8 allows correction of an error to be made either through restatement of all period periods presented or by reflecting the effect of the correction in income of the period in which the error was discovered without restating previously reported results.
• D) IAS No.8 reflects a preference for not restating prior results in reporting accounting changes and error corrections.

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Definitions:

Organ Systems

Groups of organs that work together to perform complex functions in an organism.

Ecosystem

A community of living organisms and their physical environment interacting as a system.

Physical Environment

The external surroundings and conditions in which an organism lives, including both natural and man-made factors.

Community

An interacting group of various species living in a common location.