The IASB's Framework for the Preparation and Presentation of Financial

question 51

Multiple Choice

The IASB's Framework for the Preparation and Presentation of Financial Statements (1989) establishes:

• A) the required practices that should be followed by accountants in preparing financial statements.
• B) the structure, content, and format of financial statements.
• C) sanctions for failure to comply with the IASB standards.
• D) the concepts to be used in formulating international accounting standards.

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Definitions:

Nonrecurring Losses

Losses that are not expected to happen again in the foreseeable future, differentiated from normal business operations.

Accounting Events

Transactions or occurrences that result in changes to the financial statements of a company, requiring recognition or disclosure.

Period-To-Period Consistency

An accounting principle ensuring the application of the same accounting methods and principles from one period to the next to ensure financial comparability.

Debits

Accounting entries that increase assets or expenses or decrease liabilities or equity on a company's balance sheet.