1 In operating capital maintenance, how is the profit for the period calculated? A I I Profit is the increase in physical productive capacity over the period B I I I1 is the difference between income and expenses in a period with no adjustment for operating capital maintenance C I I It is the profit after taking into account general inflation D I I It is the same as profit calculations for historical cost with an additional adjustment for depreciation based upon current cost 2 Which of the following statements regarding the status of the Chairman's Statement in the published financial statements is correct? A [ ] It is reported upon by the auditors B i ] The format is defined by IAS 1 Prosentation of Financial Statement C I ] It is a mandatory requirement for all companies D I I There is no requirement to include financial data 3. Which of the following is NOT an enhancing qualitative characteristic identified by the IASB Conceptual Framework? ABCDIIIIVerifiabilityConsistencyUnderstandabilityJTimeliness 4 According to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, when selecting an accounting policy, management must ensure that the chosen policy provides information that has which of the following characteristics? I Relevance II. Understandability III Comparability IV Reliability A [ ] I and II only B I ] I, II and III only C [ ] I and IV only D I ] I, II, III and IV 5. Which of the following statements about corporate governance is/are true? I. All companies must include a corporate governance statement in their annual report II. Corporate governance is the system by which companies are directed and controlled. ABCDI]I][][]NeitherInorIIIonlyIIonlyBothIandII