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n 5 choose the correct answer fro

n 5 choose the correct answer fro

FINANCIAL ACCOUNTING
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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What is the authoritative status of the Conceptual Framework * If there is a Standard or Interpretation that specifically applies to a transaction, it overrides the Framework. In the absence of a Standard or an Interpretation that specifically applies to a transaction, management should consider the applicability of the Framework in developing and applying an accounting policy that results in information that is relevant and reliable The Framework applies only when FRSC develops new or revised standards. An entity is never required to consider the Framework a. Ithas the highest level of authority. In case of conflict between the Frameworkand a Standard or Interpretation, the Framework overrides the Standard or Interpretation b. If there is a Standard or Interpretation that specifically applies to a transaction, it overrides the Framework. In the absence of a Standard or an Interpretation that specifically applies, the Framework should be followed.
Transcribed Image Text:What is the authoritative status of the Conceptual Framework * If there is a Standard or Interpretation that specifically applies to a transaction, it overrides the Framework. In the absence of a Standard or an Interpretation that specifically applies to a transaction, management should consider the applicability of the Framework in developing and applying an accounting policy that results in information that is relevant and reliable The Framework applies only when FRSC develops new or revised standards. An entity is never required to consider the Framework a. Ithas the highest level of authority. In case of conflict between the Frameworkand a Standard or Interpretation, the Framework overrides the Standard or Interpretation b. If there is a Standard or Interpretation that specifically applies to a transaction, it overrides the Framework. In the absence of a Standard or an Interpretation that specifically applies, the Framework should be followed.
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