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NEW QUESTION 45
You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?

• A. Details of any dividends paid or proposed.
• B. Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
• C. Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
• D. Details regarding accounting policies pursued by Daylight in preparation of its financial statements.

Answer: D

NEW QUESTION 46
Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

• A. The financial statements based on these standards would be error-free.
• B. The interpretation of non-financial information is made easier.
• C. The interpretation of financial reporting standards by anybody would be easy.
• D. A financial reporting environment based on standardised principles would be created.

Answer: D

NEW QUESTION 47
Which one of these is a key principle of good corporate governance?

• A. effective management of the employees of the company
• B. non-disclosure of directors' agency relationship with the company
• C. effective communication with shareholders
• D. restriction of shareholders' rights in decision-making

Answer: C

NEW QUESTION 48
A rules-based approach to standard setting

• A. provides a broad framework for standard setting.
• B. helps a standard-setting body to prioritise matters.
• C. prescribes standards that attempt to cover all eventualities a business may face.
• D. ensures there are no conflicts within accounting standards as each issue is handled just once.

Answer: C

NEW QUESTION 49
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