a) Briefly explain the “going concern” and “accrual” concepts which are the assumptions andconcepts prescribed by the Conceptual Framework in preparing financial statements.(b) LifeStyle Sdn. Bhd. bought a pick up van to deliver goods sold to customers.Required:(i) Explain the accounting treatment for the above transaction. (ii) Describe how do the concepts in part (a) above affect the accounting treatment in part(b) (i) above. Question 1The International Accounting Standards Board (IASB) issued the revised Conceptual Framework forFinancial Reporting (Conceptual Framework), a comprehensive set of concepts for financial reporting,in March 2018 to assist IASB in developing International Financial Reporting Standards (IFRSS) basedon consistent concepts, resulting in financial information that is useful to investors, lenders and othercreditors.Required:

Accounting principles are the norms and criteria that businesses must adhere to when reporting…

a) Briefly explain the “going concern” and “accrual” concepts which are the assumptions and concepts prescribed by the Conceptual Framework in preparing financial statements. (b) LifeStyle Sdn. Bhd. bought a pick up van to deliver goods sold to customers. Required: (i) Explain the accounting treatment for the above transaction. (ii) Describe how do the concepts in part (a) above affect the accounting treatment in part (b) (i) above.

a) Briefly explain the “going concern” and “accrual” concepts which are the assumptions and concepts prescribed by the Conceptual Framework in preparing financial statements. (b) LifeStyle Sdn. Bhd. bought a pick up van to deliver goods sold to customers. Required: (i) Explain the accounting treatment for the above transaction. (ii) Describe how do the concepts in part (a) above affect the accounting treatment in part (b) (i) above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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