Analyze the following: I – The cumulative feature of preference shares requires that dividends not paid in any year must be made up in a later years before dividends are distributed to ordinary shareholders. II – Business combination transaction entered by the entity after reporting period but before date of authorization of FS issuance may not be considered as a subsequent event. III – Under interim financial reporting, in cases that the entity operates in an environment where there is a change in effective tax rate during the year, income tax declared on each interim period should be computed based on weighted average income tax rate. Given these, we can conclude that: Group of answer choices Only statement II is false. Only statement III is false. Only statements II and III are false. Only statement I is true.
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Analyze the following:
I – The cumulative feature of
II – Business combination transaction entered by the entity after reporting period but before date of authorization of FS issuance may not be considered as a subsequent event.
III – Under interim financial reporting, in cases that the entity operates in an environment where there is a change in effective tax rate during the year, income tax declared on each interim period should be computed based on weighted average income tax rate.
Given these, we can conclude that:
Group of answer choices
Only statement II is false.
Only statement III is false.
Only statements II and III are false.
Only statement I is true.
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