Which of the Following Is Correct Regarding the Provisions of IAS

question 76

Multiple Choice

Which of the following is correct regarding the provisions of IAS No.8 on accounting changes and error corrections?

• A) IAS No.8 requires that correction of an error be made only by restatement of all prior periods presented.
• B) IAS No.8 requires correction of an error to be made only by reflecting the effect of the correction in income of the period in which the error was discovered without restating previously reported results.
• C) IAS No.8 allows correction of an error to be made either through restatement of all period periods presented or by reflecting the effect of the correction in income of the period in which the error was discovered without restating previously reported results.
• D) IAS No.8 reflects a preference for not restating prior results in reporting accounting changes and error corrections.

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Definitions:

Fluid Cognitive Structure

Refers to an aspect of cognitive ability that involves the capacity to reason quickly and think abstractly, allowing for problem-solving and the learning of new tasks.

Consistently

Acting or behaving in the same way over time, showing steady conformity to the same principles, course, form, etc.

Chronically Underaroused

Describes a condition or state in which an individual consistently exhibits lower than average levels of physiological or psychological arousal.

Norepinephrine Systems

A network of neurons that release the neurotransmitter norepinephrine, involved in regulating stress, alertness, and arousal.