Which, If Any, of the Following Provisions Cannot Be Justified

question 139

Multiple Choice

Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

• A)Nonrecognition of gain allowed for involuntary conversions.
• B)Net operating loss carryback and carryover provisions.
• C)Carry over of excess charitable contributions.
• D)Use of the installment method to recognize gain.
• E)Carry over of excess capital losses.

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Definitions:

Short-Term

Refers to a time horizon or a period within twelve months or within an entity's operating cycle if it's longer.

Accumulating

The process of gathering or increasing an amount of something over time, often referring to interest, benefits, or assets.

Vesting

The process by which an employee acquires non-forfeitable rights over employer-provided stock incentives or contributions made to the employee's pension plan, often based on length of service.

AASB 119/IAS 19

Accounting standards that dictate the accounting for employee benefits, including pensions and other post-employment benefits, aligning with international financial reporting standards.