Question: The elements that are most directly related to measuring an

The elements that are most directly related to measuring an enterprise performance and financial status follow:
(a) Indicate which element is being described below. For any item that is an asset or liability, consider if the item qualifies under both the definition currently in place and that proposed under IFRS:
1. Arises from peripheral or incidental transactions.
2. Obliges a transfer of resources because of a present, enforceable obligation.
3. Increases in the ownership interest through issuance of shares.
4. Cash dividends to owners (declared and paid).
5. An expenditure that has future economic benefit.
6. Decreases in assets during the period for the payment of taxes.
7. Arises from income-generating activities that are the entity's ongoing major or central operations.
8. Is the residual interest in the enterprise's assets after deducting its liabilities.
9. Increases assets during the period through the sale of a product.
10. Decreases assets during the period by purchasing the company's own shares.
(b) Indicate which element listed above is being illustrated in the examples that follow. Consider both the current and proposed definitions of assets and liabilities.
1. NotesCo. has a written contract to receive money from the sale of copies of future recordings of music yet to be written.
2. ReadyMart Inc. has inventory out on consignment at a local retailer waiting for sale to the final customer.
3. Music Corp. has a written contract to deliver a percentage of future music revenues (royalties) from the sale of existing recordings.

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  • CreatedSeptember 18, 2015
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