Which of the following statements relating to the presentation of the statement of profit or loss by non-reporting entities is not true?
A) There is no prescribed format.
B) The statement of profit or loss must be prepared in accordance with the AASB accounting standards.
C) The purpose of the statement of profit or loss is to report the profit or loss for the entity for the reporting period.
D) Income is usually more detailed and less aggregated than that prepared for a reporting entity.

Question

Quizplus · Accepted Answer

Non-reporting entities are not required to prepare financial statements in accordance with the AASB accounting standards. However, preparing the statement of profit or loss in accordance with accounting standards would increase comparability and enhance the usefulness of the financial information. Therefore, option B is not true.

Which of the Following Statements Relating to the Presentation of the Statement