Question

Which of the following is assumption for IFRS?

a. Going Concern Assumption

b. Accrual Assumption

c. Measuring Unit Assumption

d. All of the above​

Answer 1

Which of the following is assumption for IFRS?

a. Going Concern Assumption

b. Accrual Assumption

c. Measuring Unit Assumption

d. All of the above

Answer : all of the above..

Four underlying assumptions characterizes the IFRS:

1. Going concern: The assumption that a business entity will be in operation for the foreseeable future.

2. Accrual basis: The assumption that the financial effects of transactions and events are recognized as they occur, and not when cash is received or paid.

3. Stable measuring unit assumption: The assumption that financial capital is measured in nominal monetary units. This is the historical cost accounting in which assets and liabilities are recorded at their values when first acquired and not generally restated for changes in values.