FA – May 2014 – L1 – SA – Q3 – Elements of Financial Statements

Identifies a non-component of financial statements under IFRS.

Question

Which of the following is NOT a component of financial statements under IFRS?
A. Statement of financial position
B. Statement of profit or loss and other comprehensive income
C. Statement of changes in equity
D. Statement of affairs
E. Statement of cashflows

Answer

Explanation:
The correct answer is D because a “Statement of affairs” is not recognized under IFRS as a component of financial statements. IFRS includes the Statement of financial position, Statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of cash flows as standard components. The “Statement of affairs” is typically used in insolvency situations rather than general financial reporting.

Tags: Basic Accounting Principles, Financial Statements, IFRS
Level: Level 1

Topic: Elements of Financial Statements
Series: MAY 2014

Uploader: Theophilus