e) As a practical matter, trade-offs of qualitative characteristics occur in accounting because Accounting standards are incomplete Accountants don\'t have enough time to properly investigate all matters Managers can\'t be trusted Specific disclosures may not meet all users\' needs f) Which of the following is a key difference between IFRS and ASPE? IFRS includes the concept of conservatism IFRS includes four principle qualitative characteristics Timeliness is considered an enhancing characteristic in IFRS O ASPE describes three different types of capital maintenance g) Which of the following is not a measurement base recognized in the conceptual framework? Historical cost O Present value Current cost Fair market value h) The standard setters\' discussion of financial statement elements Requires transactions be reported in accordance with their legal form Includes all items that should be reported on a financial statement Eliminates the need for the accountant to apply professional judgment Includes broad definitions of the general nature of each item i) Which of the following is not a motivation for management manipulation of reported financial results? Conditions of contracts Academic disagreement Performance-based compensation Market expectations j) Which of the following criteria is not a requirement for recognition of an item in the financial statements? The item has a cost or value that can be measured reliably The fair value of the item can be determined through an active market O It is probable that future economic benefits from the item will flow to or from the entity The item meets the definition of an element Solution 1. Specific disclosures may not meet all users need. 2. IFRS includes the concept of conservatism 3. Present Value. 4. Requires transactions be reported according to legal form.

1. e) As a practical matter, trade-offs of qualitative characteristics occur in accounting because
Accounting standards are incomplete Accountants don't have enough time to properly
investigate all matters Managers can't be trusted Specific disclosures may not meet all users'
needs f) Which of the following is a key difference between IFRS and ASPE? IFRS includes the
concept of conservatism IFRS includes four principle qualitative characteristics Timeliness is
considered an enhancing characteristic in IFRS O ASPE describes three different types of capital
maintenance g) Which of the following is not a measurement base recognized in the conceptual
framework? Historical cost O Present value Current cost Fair market value h) The standard
setters' discussion of financial statement elements Requires transactions be reported in
accordance with their legal form Includes all items that should be reported on a financial
statement Eliminates the need for the accountant to apply professional judgment Includes broad
definitions of the general nature of each item i) Which of the following is not a motivation for
management manipulation of reported financial results? Conditions of contracts Academic
disagreement Performance-based compensation Market expectations j) Which of the following
criteria is not a requirement for recognition of an item in the financial statements? The item has a
cost or value that can be measured reliably The fair value of the item can be determined through
an active market O It is probable that future economic benefits from the item will flow to or from
the entity The item meets the definition of an element
Solution
1. Specific disclosures may not meet all users need.
2. IFRS includes the concept of conservatism
3. Present Value.
4. Requires transactions be reported according to legal form