Reading 31: Financial Reporting Standards - LOS e ～ Q1 class, required, following, company

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1.Which of the following is a company least likely required to present according to International Accounting Standard (IAS) No. 1?

A)   Cash flow statement.

B)   Disclosures of material events.

C)   Statement of changes in owners’ equity.

D)   A summary of accounting policies.

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答案和详解如下：

1.Which of the following is a company least likely required to present according to International Accounting Standard (IAS) No. 1?

A)   Cash flow statement.

B)   Disclosures of material events.

C)   Statement of changes in owners’ equity.

D)   A summary of accounting policies.

The correct answer was B)

International Accounting Standard (IAS) No. 1 defines which financial statements are required and how they must be presented. The required financial statements are:

• Balance sheet.

• Income statement.

• Cash flow statement.

• Statement of changes in owners’ equity.

• Explanatory notes, including a summary of accounting policies.

Disclosures of material events that affect the company are required by the Securities and Exchange Commission (Form 8-K) for firms that are publicly traded in the United States.