CMA Intermediate · Corporate Accounting and Auditing · Conceptual Framework
According to the Conceptual Framework, measurement is best described as which of the following?
Measurement is one of the aspects that flow logically from the objective of general purpose financial reporting, along with elements, recognition and derecognition, presentation and disclosure. It is part of the framework and is not independent of that objective.
- AAn aspect that flows logically from the objective of general purpose financial reporting, alongside elements, recognition and presentationCorrect
- BA standalone requirement that is independent of the objective of financial reporting
- CAn aspect that applies only to entities not covered by any Ind AS
- DAn aspect that the ICAI has excluded from the framework
Explanation
Paragraph 1.1 states that the objective of general purpose financial reporting is the foundation, and that other aspects, including qualitative characteristics, the cost constraint, the reporting entity, elements, recognition and derecognition, measurement, presentation and disclosure, flow logically from it. Measurement is therefore part of the framework and derives from the objective.
Did you get it right without looking?
One question tells you little. A timed set on Conceptual Framework shows your real accuracy, how long you take and where you lose marks.
More Conceptual Framework questions
- The Conceptual Framework states that the qualitative characteristics of useful financial information flow logically from which foundation?
- According to the Conceptual Framework, which factor determines the accounting model used in preparing financial statements?
- Sundaram Textiles Ltd must choose a measurement basis for an item and no Ind AS applies to the transaction. According to the purpose of the …
- A company incurs a cost that does not meet the definition of an asset, a liability or equity. Citing the Conceptual Framework on matching, w…
- Sahyadri Traders sells goods costing ₹60,000 for ₹90,000 in cash. According to the Conceptual Framework, how does the initial recognition of…
- Which of the following is a stated purpose of the Conceptual Framework for Financial Reporting under Ind AS?