Which of the Following Income and Expense Items Is NOT

question 7

Multiple Choice

Which of the following income and expense items is NOT recorded initially directly in equity?

• A) The impairment of goodwill in accordance with IAS 36 Impairment of Assets, where the entity is confident that the factors giving rise to the impairment will reverse in a future period.
• B) An increase in the fair values of land & buildings, where the revaluation method is used to account for land & buildings in accordance with IAS 16 Property, Plant and Equipment.
• C) Foreign currency translation adjustments arising on the translation of a foreign operations financial statements from their functional currency in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.
• D) None of the above.

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Definitions:

Avoidance-avoidance

A decision-making process involving a choice between two equally undesirable outcomes or options.

Approach-approach

A conflict arising from having to choose between two desirable outcomes.

Double approach-avoidance

A psychological conflict that involves being torn between two goals, each possessing both appealing and negative aspects.

Control

The power to influence or direct people's behavior or the course of events.