Which of the Following Income and Expense Items Is NOT

question 2

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 & Equipment.
• C) A change in the fair value of an investment in another entity, which is classified as an available-for-sale financial asset in accordance with IAS 39 Financial Instruments: Recognition & Measurement.
• D) 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.

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Definitions:

Relative Economic Success

The economic status of an entity judged in comparison with others, often measured in terms of growth, income, and stability.

Jews And Koreans

Two distinct ethnic groups with their own unique historical backgrounds, cultures, and religious beliefs, Jews being historically linked to Judaism and Koreans to the Korean Peninsula.

Cultural Values

The core principles and ideals upon which an entire community exists, influencing beliefs, behaviors, and social norms.

Scapegoats

Individuals or groups blamed for wrongdoings, mistakes, or faults of others, often as a way of diverting attention or to satisfy the need to assign blame.