IAS 2 Requires Separate Disclosure Of

question 22

Multiple Choice

IAS 2 requires separate disclosure of:

• A) where there has been abnormal wastage which has been expensed;
• B) details of inventory pledged as security for loans;
• C) interest costs which have been capitalised into the cost of inventory;
• D) details of key terms of purchase.

---

Definitions:

Home Security Division

A specialized segment within a company that focuses on products and services related to securing homes from intruders, fire, and other dangers.

Transfer Price

The cost at which products or services are exchanged between divisions within the same organization or among affiliated companies.

Transmission Division

A segment within a company or industry that specializes in the development, production, and maintenance of transmission systems.

Return On Investment (ROI)

A financial metric that calculates the profitability of an investment by dividing the profit gained from an investment by its cost.