Reference no: EM132698798

Problem 1. Which is the first step within the hierarchy of guidance when selecting accounting policies?

a. Apply a standard from IFRS if it specifically relates to the transaction.

b. Apply the requirements in IFRS dealing with similar and related issue.

c. Consider the applicability of the definitions, recognition criteria and measurement concepts in the Conceptual Framework.

d. Consider the most recent pronouncement of other standard setting bodies.

Problem 2. In the absence of an accounting standard that applies specifically to a transaction, what is the most authoritative source in developing and applying an accounting policy?

a. The requirement and guidance in the standard or interpretation dealing with similar and related issue.

b. The definition, recognition criteria and measurement of asset, liability, income and expense in the Conceptual Framework

c. Most recent pronouncement of other standard-setting body

d. Accounting literature and accepted industry practice