- CFA Exams
- CFA Exam: Level I 2021
- Study Session 6. Financial Reporting and Analysis (1)
- Reading 20. Financial Reporting Standards
- Subject 3. The International Financial Reporting Standards Framework
CFA Practice Question
At the base of the Framework for the Preparation and Presentation of Financial Statements, the underlying assumptions include ______.
II. going concern
III. historical cost
IV. fair presentation
I. accrual basis
II. going concern
III. historical cost
IV. fair presentation
Correct Answer: I and II
These two important assumptions determine how financial statement elements are recognized and measured.
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