alleryStart learning →AS 5 judges whether an event is extraordinary mainly by its
AHow often it occurs
BSize of the amount
CMonth it takes place
DNature versus the business
Answer & Solution
Correct answer: D. Nature versus the business
The test is the nature of the event relative to the business carried on, not how frequently such events are expected.
Keep practising AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
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