Significant Changes to the Presentation of Financial Statements (Primary Financial

question 98

Multiple Choice

Significant changes to the presentation of financial statements (Primary Financial Statements Project) are currently being developed by the IASB. Which of the following best describes the focus of the changes?

• A) to better highlight the company's assets, liabilities and equity
• B) to segregate the company's operating, financing and investing activities
• C) to highlight the company's major business and financing activities
• D) to increase the number of notes to be attached to financial statements

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Legal System

The comprehensive system of rules and principles, typically enforced through a set of institutions, governing a society and controlling its activities.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

IASB

The International Accounting Standards Board, an independent group responsible for setting and enforcing global accounting standards known as International Financial Reporting Standards (IFRS).