In the case of grants related to income, which of these accounting treatments is prescribed by IAS 20? (a) Credit the grant to “general reserve” under shareholders’ equity. (b) Present the grant in the income statement as “other income”’ or as a separate line item, or deduct it from the related expense. (c) Credit the grant to “retained earnings” on the balance sheet. (d) Credit the grant to sales or other revenue from operations in the income statement.

Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…

A: Under accrual accounting, expense are recognized even if they are not actually paid and income is…

Q: The modified accrual foundation of accounting is used by which fund category? Under the modified…

A: Introduction: Another accounting approach that combines accumulation premise bookkeeping and cash…

Q: The modified accrual method of accounting is applied to which of the following funds or asset…

A: The correct answer is: (B) Governmental funds  The modified accrual method of accounting is a…

Q: Describe the accounting procedures involved in applying the direct financing method by a lessor.

A: Direct financing lease or operational lease method meaning given below:

Q: Which of the following funds does not get consolidated into the Governmental Activities section of…

A: Introduction: Taxes, intergovernmental income, and other nonexchangeable earnings are used to fund…

Q: Under the modified accrual basis of accounting, expenditures generally are not recognized until: a.…

A: As per the Accrual concept, expenditures are recorded in the books of accounts when they are…

Q: Revenues, expenses, and components of other comprehensive income can be reported in a single…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: Impairments of debt investments at amortized cost are

A: Impairment: Impairment is the decrease in the value of a fixed asset other than depreciation. In…

Q: Multiple choice:  The accrual basis of accounting is used to account for revenues and expenditures…

A: Following is the answer to the given question

Q: Companies are required to transfer “other comprehensive income” each period to shareholders’ equity.…

A: Comprehensive income:Comprehensive income represents the amount of net income plus other…

Q: accounts o

A: Modified accrual basis of accouting is generally used by the government agency or say government. it…

Q: An entity defined as a 'disclosing entity' under the Corporations Act mus prepare interim financial…

A: The interim financial report is the performance report of the organization but for a shorter period…

Q: Which of the following accounting methods is commonly used for recognizing income and expenses in…

A: Accrual basis accounting is the most common accounting method used for recognizing income and…

Q: Generally accepted accounting principles (GA P) has been developed to:   Select one: A. interprets…

A: GAAP means those principles which has been followed globally and accepted every where. GAAP stands…

Q: True or False questions I. Under the accrual basis of accounting, revenues are recognized when they…

A: The accrual basis of accounting is the concept of recording revenues when earned and expenses as…

Q: Statement 1: An entity shall disclose the period of construction in which borrowing costs are…

A: borrowing cost include financial charges like interest on loan and overdraft. the capitalisation of…

Q: how would you recognize your company’s assets that were acquired with the intention of generating…

A: Balance sheet shows the financial position of the company. It shows the assets, liabilities, and…

Q: Which of the four basic accounting reports indicates thatit is appropriate to consider revenues and…

A: Four basic accounting reports are: Income Statement Balance Sheet Cash flow Statement Statement of…

Q: Objective-type Question: According to the Accounting Tax Principle, when should taxes be recognized…

A: The accrual base of accounting records earnings and charges when they're earned or incurred, anyhow…

Q: An entity shall present all items of income and expenses recognized in a period: I-in a single…

A: Profit and loss is a financial statement that helps in depicting the position of profitability of an…

Q: contingency that need not be disclosed in the financial statements

A: Contingency is the probable obligation or receivable that may arise in future which depends on the…

Q: . PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An…

A: Solution 1:  PAS 28 defines an ‘associate’ as "An entity over which the investor has significant…

Q: As per the definition of revenue stated by IFRS15, which of the following statements is correct?

A: The income statement includes revenues and expenses incurred by the business.

Q: Which fund category uses modified accrual basis of accounting? What are the recognition rules of…

A: The government uses a different way to report their financial statements than the private sector…

Q: Introduction, Conclusion and Suggestion for Title: financing of goverment expenditure using defisit…

A: Solution- Introduction (a) Deficit financing Deficit funding, practice during which a government…

Q: Unreserved Fund Balance in Governmental entities is equal to which of the following in commercial…

A: Correct Answer = Option B = Retained Earnings Explanation Unreserved Fund Balance is the portion of…

Q: Chowderhead Industries has asked how other comprehensive income issues should be presented in their…

A: The company prepares this financial statement for the investors or readers of the financial…

Q: Under the fair value through other comprehensive income (FV-OCI) model, holding gains and losses are…

A: 1. Fair Value Through Other Comprehensive Income (FV-OCI) Model:Correct Answer: a. recognized in…

Q: 12. Which of the following is correct regarding the use of terminology under IAS 1 Presentation of…

A: The IAS 1 Presentation of Financial Statements objective is to give the basis for the presentation…

Q: In cash basis accounting, for tax purposes: a.Income is generally recognized when it is actually or…

A: There are two types or forms of accounting, that are used. These are cash basis accounting and…

Q: assets, and currenț and non-current liabilities, a separate classification in its statement of…

A: STATEMENT 1 :  Current assets are those assets which gives economic benefits up to one year.  Non-…

Q: How is the valuation of cuIrent assets affected if the company follows IFRS? OValuation is based on…

A: SOLUTION- HISTORICAL COST  IS THE ORIGINAL OF AN ASSET , AS RECORDED IN AN ENTITY'S ACCOUNTING…

Q: 1. Explain the purpose of operational accountability and the purpose of fiscal accountability. Which…

A: Operational accountability refers to the responsibility of an organization to use its resources…

Q: Explain t

A: Modified accrual accounting combines aspects of accrual basis accounting with cash basis accounting…

Q: Which of the following statements is not applicable to revenue recognition guidance under ASC Topic…

A: In the given case all of the following are true regarding revenue recognition principal provided in…