Question

In accordance with IAS 1 Presentation of Financial Statements, which one of the following statements is correct?

• A. Assets and liabilities must be presented broadly in the order of their liquidity.
• B. Assets and liabilities can be offset if they result from the same transaction or event.
• C. Intangible assets must be presented separately in the statement of financial position.
• D. Even if less than 12 months, the length of an entity's operating cycle must be disclosed.

Answer 1

Answer: (C)

Intangible assets must be presented separately in the statement of financial position.

In accordance with IAS 1 Presentation of Financial Statements, Intangible assets must be presented separately in the statement of financial position. IAS 1 sets out guidelines for presentation of financial statements, guidelines for their presentation etc