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:

Income Before Taxes

Another term for pretax income, indicating the amount earned by a business before subtracting taxes.

Loss On Sale

Loss on sale occurs when the selling price of an asset is less than its carrying amount or book value, resulting in a financial loss for the seller.