While No General Principle Describes the Nature of Items Excluded

question 101

Multiple Choice

While no general principle describes the nature of items excluded from net income and included in Other Comprehensive Income, they tend to arise from remeasurements of assets and liabilities (often, remeasurements at fair value) and not from transactions.For example, IFRS permits but does not require firms to revalue certain noncurrent assets upward to reflect increases in fair value in excess of acquisition cost.Under IFRS, such a revaluation remeasurement increases assets (because the firm now records an existing asset on the balance sheet at a larger number) and increases Other Comprehensive Income.These increases are accumulated in a(n) _____ account, Revaluation Surplus.

• A)liability
• B)shareholders' equity
• C)revenue
• D)asset
• E)expense

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Definitions:

Homozygous

Having two identical alleles for a particular gene or genes, contributing to specific traits or conditions.

Recessive Inheritance

A genetic phenomenon where a trait is expressed only when two copies of a recessive allele are present, one from each parent.

Genetic Mutation

A change in the DNA sequence within a gene or chromosome of an organism that can lead to differences in physical traits or health.

Chromosomal Abnormality

A change in the number or structure of chromosomes, often leading to genetic disorders or syndromes.