conceptual frame work

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October 6, 2015 at 4:39 pm #275212
frozen
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Q: conceptual framework identifies an ” underlying assumption” in preparing financial statements. This is
1 . Going concern
2 . Materiality
3 . Substance over form
4 . Accruals
Answer in bp exam kit is ( going concern) but notes tell us Accruals & going concern) are underlying assumptions. OT Notes chap 2 page 4.
pls assist
October 6, 2015 at 5:45 pm #275233
MikeLittle
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Here’s an extract from an IFRS internet post, reference:
https://www.ifrs.org/Meetings/MeetingDocs/IASB/Archive/Conceptual-Framework/Agenda%20Decision/0409b07.pdf
“Fundamental concepts
Underlying assumptions
35. The IASB framework contains two underlying assumptions: the accruals basis and the going concern basis.17 These assumptions receive less prominence in the FASB framework. For example, the going concern basis is mentioned in a footnote only.18”
Make of that what you will!
October 7, 2015 at 7:15 am #275291
frozen
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Thank you
October 7, 2015 at 8:39 am #275323
MikeLittle
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What did you decide?
October 8, 2015 at 5:36 am #275485
frozen
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Both
Accruals & Going concern
October 8, 2015 at 8:10 am #275488
MikeLittle
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That’s what I think too!
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