Day: May 29, 2020

Prior to issuing a Financial Reporting Standard, the old Accounting Standards Board would normally issues a ‘draft’ with a view to obtaining comments on the proposed Standard.  Such a ‘draft‘ document were referred to as . . .?

Select ONE answer:

1. an Exposure Draft.
2. an Example Draft.
3. an Explanation Draft.
4. a Financial Reporting Exposure Draft (FRED).

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct – An Exposure Draft (ED) is what was issued prior to issuing a Statement of Standard Accounting Practice (SSAP). Such EDs are no longer issued as SSAPs are no longer issued.
2. Not correct – There is no such document in accounting.
3. Not correct – There is no such document in accounting.
4. Correct

 

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