Which of the following statements about accounting concepts and policies is/are correct?1 Companies should never change the presentation or classification of items in their financial statements, even if there is a significant change in the nature of operations.2 Companies should create provisions in times of company growth to be utilised in more difficulttimes, to smooth profits
A、1 only
B、2 only
C、1 and 2
D、Both are incorrect
A、1 only
B、2 only
C、1 and 2
D、Both are incorrect
【参考答案及解析】
(1) is incorrect, the presentation or classification can be changed if there is a significant changein the nature of operations, if an IFRS requires it or if a review of the accounts indicates a more appropriate presentation. (2) is incorrect, companies should not make provisions in order to smooth profits, provisions should only be made in accordance with IAS 37
(1) is incorrect, the presentation or classification can be changed if there is a significant changein the nature of operations, if an IFRS requires it or if a review of the accounts indicates a more appropriate presentation. (2) is incorrect, companies should not make provisions in order to smooth profits, provisions should only be made in accordance with IAS 37