FA – Nov 2020 – L1 – SA – Q13 – Elements of Financial Statements

Identifies a component that is not part of the financial statements as defined by IAS 1.

Question

Which of the following is NOT a component of financial statements under IAS 1?
A. Statement of financial position
B. Statement of profit or loss and other comprehensive income
C. Statement of equity
D. Statement of changes in equity
E. Statement of cash flows

Answer

: C. Statement of equity

Explanation:
Under IAS 1, the required components of financial statements include the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows. The term “statement of equity” is incorrect, as it is not a recognized term under IAS 1.

Tags: Financial Statements, IAS 1, Statement of Financial Position
Level: Level 1

Topic: Elements of Financial Statements
Series: NOV 2020

Uploader: Dotse