Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.

• A.I, II and III only
• B.II, III and IV only
• C.I, II and IV only
• D.I, III and IV only

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A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in

• A.measurement basis and does not need to be disclosed.
• B.measurement basis and must be disclosed.
• C.accounting estimate and must be disclosed.
• D.accounting estimate and does not need to be disclosed.

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Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?

• A.Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.
• B.Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.
• C.Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.
• D.Semi-strong form efficiency does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.

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A rules-based approach to standard setting

• A.prescribes standards that attempt to cover all eventualities a business may face.
• B.ensures there are no conflicts within accounting standards as each issue is handled just once.
• C.helps a standard-setting body to prioritise matters.
• D.provides a broad framework for standard setting.

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Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by

• A.using your professional judgment and referring to generally accepted accounting principles and practice.
• B.referring to the fundamental accounting assumptions and conventions.
• C.consulting with the International Accounting Standards Board.
• D.using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.

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