Can items that fail the asset or liability definition be shown in an interim balance sheet?
AYes, to smooth profit
BYes, for seasonal items
CNo, it is not allowed
DYes, if it is material
Answer & Solution
Correct answer: C. No, it is not allowed
The Standard bars recognising balance sheet items that do not meet the definition of an asset or liability.
Keep practising AS 25 Interim Financial Reporting
Browse all AS 25 Interim Financial Reporting questions for CA Inter, or explore more Accounting topics.
Related questions
Each interim period of a quarterly reporter uses what?What must a liability at an interim date represent?A cost fails the asset test at year end. At an interim date?A half-yearly reporter revises an estimate. First-half figures?Regulator sets its own format. What still applies?AS 25 says timely interim reporting helps users to understand what?In which year was AS 25 on interim reporting issued?On first AS 25 report, which comparatives are optional?