Under the IFRS Conceptual Framework, What General Information Is Useful

question 159

Multiple Choice

Under the IFRS Conceptual Framework, what general information is useful for the decision making needs of lenders and investors?

• A)Information prepared on the cash basis of accounting.
• B)Information and changes in information relating to the entity's resources and claims against those resources.
• C)Financial performance resulting from a company's operating activities.
• D)Information on the company's equity and share structure.

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Definitions:

Rates of Return

The positive or negative financial outcome of an investment over an agreed-upon period, expressed as a percent of the investment's initial outlay.

Present Value

The now value of a sum of money to be received in the future or a series of financial inflows, accounting for a specific return rate.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and not on accumulated interest.

Discount

A reduction applied to the normal cost of goods or services, or in finance, the process of determining the present value of future cash flows by applying a discount rate.