Question
Part A Non-IFRS financial measures reported by public companies to its financial statement users may be helpful in decision-making but caution must be exercised because
Part A
Non-IFRS financial measures reported by public companies to its financial statement users may be helpful in decision-making but caution must be exercised because
a) of the independence issue, given that the same auditors audit the financial statements and the non-IFRS financial measures.
b) management defines the measures based on their expertise, judgement and financial reporting needs.
c) tax rules affect the non-IFRS financial measures.
d) the criteria established in the accounting standards for the purposes of calculating non-IFRS financial measures are open to interpretation.
Part B
Eats Inc. issues 100,000 shares at $11 / share in January 2010. Later that year the company is able to repurchase 9,000 of these shares at $10 per share. The effect of this is
a) a decrease to the share capital account of $90,000.
b) an increase to the contributed surplus account of $9,000.
c) a decrease to total shareholders' equity of $99,000.
d) an increase in retained earnings by $9,000.
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