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Which statement is incorrect regarding selection and application of accounting policies? PERSs set out accounting policies that the FRSC has concluded result in financial statements containing relevant and reliable information about the transactions, other events and conditions to which they apply. When a PFRS specifically applies to a transaction, other event or condition, the accounting policy or policies applied to that item shall be determined by applying the PERS. PERSs need not be applied when the effect or applying them is immaterial. In the absence of a PFRS that specifically applies to a transaction, other event or condition management shall use the conceptual Framework in developing and applying an accounting policy