Which of the following statements regarding presentation of financial statements under IFRS is not ?
A) Assets can be listed from least liquid to most liquid, where liquid refers to the ease of converting an asset to cash.
B) Assets can be listed from most liquid to least liquid, where liquid refers to the ease of converting an asset to cash.
C) Assets must be listed from most liquid to least liquid, where liquid refers to the ease of converting an asset to cash.
D) Liabilities can be listed from furthest from maturity to nearest to maturity, where maturity refers to the nearness of paying off the liability.
E) Liabilities can be listed from nearest to maturity to furthest from maturity, where maturity refers to the nearness of paying off the liability.

Question

Quizplus · Accepted Answer

Under IFRS, there is no strict requirement for assets to be listed in the order from most liquid to least liquid. Entities have the flexibility to present their assets in the order that best reflects the liquidity of the assets, which can be either from most liquid to least liquid or vice versa. Therefore, statement C is incorrect as it suggests a mandatory order of presentation that does not exist under IFRS.

Which of the Following Statements Regarding Presentation of Financial Statements