3rd Edition

ISBN: 9780136946533

Author: GORDON

Publisher: PEARSON

See similar textbooks

Videos

Textbook Question

Chapter 3, Problem 1BCC

Basis for Conclusions Case 1: Judgment and Estimation Uncertainty

Unlike U.S. GAAP, IFRS requires that an entity disclose (a) management’s judgments with the most significant effect on the financial statements and (b) information about the major sources of estimation uncertainty that may result in a material adjustment to the carrying values of the entity’s assets and liabilities. These disclosure requirements are included in IAS 1, “Presentation of Financial Statements.” Paragraph 122 contains the requirement related to judgments and paragraph 125 contains the requirement related to estimation uncertainty.

Read paragraphs BC77 through BC84 in the basis for conclusions in IAS 1. What reasons did the Board give for requiring the disclosures about judgment? What reasons did the Board give for requiring the disclosures about estimation uncertainty?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 3, Problem 3SSC

Chapter 3, Problem 2BCC

Students have asked these similar questions

I need help solving this financial accounting question with the proper methodology.

18. Inventory shrinkage is recorded as:A. Increase in revenueB. Decrease in liabilitiesC. Inventory loss expenseD. Owner withdrawal

19. What does a classified balance sheet show?A. Net cash from operationsB. Revenue by categoryC. Assets and liabilities in current and long-term sectionsD. Owners' drawings help

Chapter 3 Solutions

INTERMEDIATE ACCOUNTING-MYACCOUNTINGLAB

Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Does U.S. GAAP require that companies disclose...Ch. 3 - Does IFRS require that companies disclose...Ch. 3 - Prob. 3.5Q Ch. 3 - Does IFRS require that companies disclose their...Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.10Q

Ch. 3 - Prob. 3.11Q Ch. 3 - What is the Basis for Conclusions and where can...Ch. 3 - Prob. 3.13Q Ch. 3 - Prob. 3.14Q Ch. 3 - Prob. 3.1BE Ch. 3 - Judgment in Accounting for Plant and Equipment....Ch. 3 - Match Each Cognitive Bias Below with its...Ch. 3 - Prob. 3.4BE Ch. 3 - Prob. 3.5BE Ch. 3 - Prob. 3.6BE Ch. 3 - Prob. 3.7BE Ch. 3 - Codification Research. Referencing Appendix A,...Ch. 3 - Prob. 3.9BE Ch. 3 - Prob. 3.10BE Ch. 3 - Exercises E3-1. Accounting Policy Disclosures. To...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. To what entity types...Ch. 3 - Authoritative Literature. How does FASB define...Ch. 3 - Prob. 3.8E Ch. 3 - Prob. 1JC Ch. 3 - Prob. 2JC Ch. 3 - Prob. 1SSC Ch. 3 - Surfing the Standards Case 2: Inventory...Ch. 3 - Prob. 3SSC Ch. 3 - Basis for Conclusions Case 1: Judgment and...Ch. 3 - Basis for Conclusions Case 2: Income Statement or...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Solution Summary: The author explains the Financial Accounting Standards Board's reasons for requiring disclosures about judgment and estimation uncertainty.

Videos

Want to see the full answer?

Chapter 3 Solutions