Advantages of ethical code for accountants


1) GH is registered for VAT in Country X and is partly excused for VAT purposes.

GH’s sales for last VAT period, not including VAT, were:

                                        $
Goods at standard rate       15,000
Goods exempt from VAT      10,000

In the period GH purchased materials and services costing a total of $12,075, including VAT at standard rate. These materials and services were used to create standard rated goods and exempt goods.

Suppose that GH had no other VAT related transactions in period.

Compute net VAT due to/from GH for VAT period.

Financial Operations 5 November 2013

2) Recognize TWO advantages of having the ethical code for accountants.

3) Recognize any TWO responsibilities of IFRS Foundation.

4) IASB’s Conceptual Framework for Financial Reporting (2010) (Framework) identifies faithful representation as the fundamental qualitative characteristic of financial information.
Which ONE of the following is NOT the characteristic of faithful representation?

A Free from error
B Verifiable
C Neutral
D Complete

5) Name two actions needed under IAS 1 (Revised) Presentation of Financial Statements to make sure that “Financial statements shall present fairly the financial position, financial performance and cash flows of an entity.”

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Accounting Basics: Advantages of ethical code for accountants
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