ACCA Applied Knowledge · Financial Accounting · Statement of financial position
Which of the following must be shown as a separate line item on the face of the statement of financial position under IAS 1?
Inventories must be presented as a separate line item on the face of the statement of financial position under IAS 1. Cost of sales is a profit or loss item, while directors' remuneration and individual customer balances are not face-of-statement items.
- ADirectors' remuneration
- BInventoriesCorrect
- CCost of sales
- DIndividual customer balances
Explanation
IAS 1 requires inventories to be presented as a line item on the face of the statement of financial position. Cost of sales belongs in the statement of profit or loss, and directors' remuneration and individual customer balances are disclosure or ledger detail, not face items.
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