Which of the following requires significant judgment?
A) Whether information is material and needs to be presented separately in the financial statements
B) The entity's ability to continue as a going concern
C) Identifying and presenting discontinued operations in the statement of PL and OCI
D) Whether presentation of assets and liabilities in order of liquidity is more relevant and reliable than the current/non-current classification
E) All of the above.

Question

Quizplus · Accepted Answer

Each of the options listed involves significant judgment. Materiality judgments affect what information is disclosed separately in financial statements. Assessing an entity's ability to continue as a going concern involves judgments about future events and conditions. Identifying and presenting discontinued operations requires judgment about classification and presentation. Deciding on the presentation of assets and liabilities based on liquidity versus a current/non-current classification involves judgments about relevance and reliability to users of financial statements.

Which of the Following Requires Significant Judgment