Question No10. Which are the methods for evaluation of consumption of inventories in accordance with the International Accounting Standard (IAS) 2 Inventories? Question No12. Is it true or not? When the accrual basis of accounting is used, an entity recognises items as assets, liabilities, equity, income, and expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements in the Conceptual Framework for Financial Reporting (CF). Question No15. Is it true or not? An entity shall prepare all its financial statements, except the statement for cash flow information, using the accrual basis of accounting