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ACCA Applied Knowledge · Financial Accounting · The regulatory framework

A company's shares are traded on a stock exchange. Which of the following is a requirement that typically arises from the stock exchange's listing rules rather than from IFRS Accounting Standards?

Requiring interim reports to be published within a set time after the half-year end typically comes from listing rules. The other options are measurement and recognition requirements contained in IFRS Accounting Standards for inventory, property, plant and equipment, and provisions, and apply regardless of listing.

  1. APublishing interim financial reports within a set period after the half-year endCorrect
  2. BMeasuring inventory at the lower of cost and net realisable value
  3. CDepreciating property, plant and equipment over its useful life
  4. DRecognising a provision when a present obligation exists and outflow is probable

Explanation

Listing rules set additional obligations for listed entities, such as the timing and content of interim reporting and publication deadlines. The other three options are recognition and measurement requirements found in IFRS Accounting Standards (IAS 2, IAS 16 and IAS 37).

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