ICAEW far chapter 2 questions with correct answers

What do financial statements provide information about - Answer Financial position, financial performance and cash flows. What are financial statements regulated by - Answer Accounting standards and local laws and regulations What does section 3 of frs 102 prescribe - Answer The basis for the presentation of financial statements to ensure fair presentation of the position, performance and cash flows of the entity. If financial statements are eligible for frs 105 application - Answer They must be prepared in accordance with frs 105 Does frs 102 apply to public entities or other entities - Answer Both. What is the purpose of financial statements - Answer To provide info about financial position, performance and cash flows to help make economic decisions. To show the result of management stewardship of the resources of the entity. What aspects if the entities results is information provided about - Answer Assets. Liabilities. Equity (capital plus reserves). Income and expenses. Changes in equity. Cash flows. Additional info in notes. What do sections 4 and 5 of frs 102 look at - Answer The statement of financial position and the statement of comprehensive income.