CMA Intermediate · Corporate Accounting and Auditing · Conceptual Framework
According to the Conceptual Framework, which aspects flow logically from the objective of general purpose financial reporting?
All the listed aspects flow from the objective: qualitative characteristics, cost constraint, the reporting entity concept, elements of financial statements, recognition and derecognition, measurement, and presentation and disclosure. The objective of general purpose financial reporting is the foundation of the framework.
- AOnly the qualitative characteristics of useful information
- BOnly recognition and measurement
- CQualitative characteristics, cost constraint, reporting entity, elements, recognition and derecognition, measurement, presentation and disclosureCorrect
- DOnly the elements of financial statements and the Ind AS list
Explanation
The introduction lists the qualitative characteristics, cost constraint, reporting entity concept, elements, recognition and derecognition, measurement, presentation and disclosure as flowing from the objective. The other options give incomplete lists.
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