Question 1 (50 marks)

1. The International Accounting Standards Boards Conceptual Framework for Financial Reporting identifies that financial performance can be reflected on an accruals basis and on the assumption that the entity is a going concern. Discuss both of the concepts, accruals and going concern, and give examples of their application in financial statements.

15 Marks (600 Words)

2. Discuss how the regulatory framework of financial reporting contributes towards meeting the objective of financial reporting as set out in the IASBs Conceptual Framework.

13 Marks (500 words)

3. The statement of profit or loss and statement of cash flows both provide information about the financial performance of a business over a period of time. What are the differences between these two statements and the information they provide? Why are companies required to prepare both statements? 12 Marks (400words)

4. Discuss the advantages and limitations of historical cost and fair value as measurement bases.

10 Marks (300 words)