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
Ask the Tutor ACCA FR
conceptual frame work
10y ago#1Here'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!
Thank you
10y ago#3What did you decide?
Both
Accruals & Going concern
10y ago#5That's what I think too!
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