To assist the IASB in the preparation and review of IFRS

To be authoritative where a specific IFRS conflicts with the Conceptual Framework

To assist in determining the treatment of items not covered by an existing IFRS

To assist auditors in forming an opinion on whether financial statements comply with IFRS

Derecognising factored trade receivables sold without recourse

Treating redeemable preference shares as part of equity in the statement of financial position

Charging the rental payments for an item of plant to the statement of profit or loss where the rental agreement meets the criteria for a finance lease

Including a convertible loan note in equity on the basis that the holders are likely to choose the equity option on conversion

$30,000

$32,215

$17,785

$20,000

(i) and (ii) only

All four

(i), (iii) and (iv)

(iii) and (iv)

$67.9 million

$63.8 million

$59.9 million

$61.4 million

(ii) and (iii) only

(i) and (ii) only

(i), (ii) and (iii)

All four

$1,455,000

$1,395,000

$1,515,000

$1,500,000

$4,070,000

$5,000,000

$3,850,000

$19,300,000

(ii) and (iii)

(i) and (ii)

(iii) and (iv)

(i) and (iii)

IAS 11 Construction Contracts

IAS 41 Agriculture

IAS 16 Property, Plant and Equipment

IAS 10 Events After the Reporting Period

56 days

106 days

89 days

51 days

(i), (ii) and (iii)

(ii), (iii) and (iv)

All four

(ii) and (iii) only

Gross profit margin / net asset turnover

Net profit margin × net asset turnover

Net profit margin / net asset turnover

Gross profit margin × net asset turnover

They are difficult to verify as transactions could have happened many years ago.

They understate assets and overstate profit.

They contain mixed values; some items are at current values, some at out of date values.

They overstate gearing in the statement of financial position.

Preparation of a statement of cash flows

Requirement to capitalise a finance lease

Disclosure of non-adjusting events after the reporting date

Disclosure of earnings per share