a) Briefly explain the “going concern” and “accrual” concepts which are the assumptions andconcepts prescribed by the Conceptual Framework in preparing financial statements.(b) LifeStyle Sdn. Bhd. bought a pick up van to deliver goods sold to customers.Required:(i) Explain the accounting treatment for the above transaction. (ii) Describe how do the concepts in part (a) above affect the accounting treatment in part(b) (i) above. Question 1The International Accounting Standards Board (IASB) issued the revised Conceptual Framework forFinancial Reporting (Conceptual Framework), a comprehensive set of concepts for financial reporting,in March 2018 to assist IASB in developing International Financial Reporting Standards (IFRSS) basedon consistent concepts, resulting in financial information that is useful to investors, lenders and othercreditors.Required:

Accounting principles are the norms and criteria that businesses must adhere to when reporting…

a) Briefly explain the “going concern” and “accrual” concepts which are the assumptions and concepts prescribed by the Conceptual Framework in preparing financial statements. (b) LifeStyle Sdn. Bhd. bought a pick up van to deliver goods sold to customers. Required: (i) Explain the accounting treatment for the above transaction. (ii) Describe how do the concepts in part (a) above affect the accounting treatment in part (b) (i) above.

a) Briefly explain the “going concern” and “accrual” concepts which are the assumptions and concepts prescribed by the Conceptual Framework in preparing financial statements. (b) LifeStyle Sdn. Bhd. bought a pick up van to deliver goods sold to customers. Required: (i) Explain the accounting treatment for the above transaction. (ii) Describe how do the concepts in part (a) above affect the accounting treatment in part (b) (i) above.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 4MCQ

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