Which of the following statements is correct?
A) IFRS gives specific guidance for reacquisition of shares.
B) IFRS does not give explicit guidance for accounting for financial reorganizations.
C) IFRS requires that changes in retained earnings are presented in a retained earnings statement, and that changes in capital accounts are given in the notes.
D) ASPE does not give guidelines for accounting for financial reorganizations.

Question

Quizplus · Accepted Answer

IFRS does not provide explicit guidance for accounting for financial reorganizations, while ASPE does. Options A and C are not correct as IFRS does not provide specific guidance for reacquisition of shares or for the presentation of changes in retained earnings and capital accounts, respectively. Option D is incorrect as ASPE does provide guidance for accounting for financial reorganizations.

Which of the Following Statements Is Correct