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:

Global Competition

The scenario in which companies and businesses from around the world compete with each other to capture market share and achieve higher sales and profits.

Critical Thinking

The ability to objectively analyze and evaluate an issue in order to form a reasoned judgment, characterized by open-mindedness and skepticism.

Objective Knowledge

Information or facts that are not influenced by personal feelings or opinions and can be verified by evidence.

U.S. Department of Labor

A department of the federal government of the United States responsible for occupational safety, wage standards, unemployment insurance benefits, re-employment services, and some economic statistics.