Which statement is correct regarding IFRS?(a) An advantage of the nature-of-expense method is that it is simple to apply because allocations of expense to different functions are not necessary.(b) The function-of-expense approach never requires arbitrary allocations.(c) An advantage of the function-of-expense method is that allocation of costs to the varying functions is rarely arbitrary.(d) IFRS requires use of the nature-of-expense approach.
Which statement is correct regarding IFRS?(a) An advantage of the nature-of-expense method is that it is simple to apply because allocations of expense to different functions are not necessary.(b) The function-of-expense approach never requires arbitrary allocations.(c) An advantage of the function-of-expense method is that allocation of costs to the varying functions is rarely arbitrary.(d) IFRS requires use of the nature-of-expense approach.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Which statement is correct regarding IFRS?
(a) An advantage of the nature-of-expense method is that it is simple to apply because allocations of expense to different functions are not necessary.
(b) The function-of-expense approach never requires arbitrary allocations.
(c) An advantage of the function-of-expense method is that allocation of costs to the varying functions is rarely arbitrary.
(d) IFRS requires use of the nature-of-expense approach.
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