Items that are dissimilar in nature must be presented separately in financial statements unless:
A)they are immaterial;
B)they are financial items in which case they can be off-set;
C)the directors approve of an aggregation of the items;
D)the auditors approval to aggregate the items is obtained.

Question

Quizplus · Accepted Answer

Items that are dissimilar in nature must be presented separately in financial statements unless they are immaterial. Therefore, if the items are immaterial, they can be aggregated or combined in the financial statements. Option B is incorrect because financial items cannot be offset unless they are of the same nature. Option C and D are also incorrect because the decision to aggregate items must be based on materiality, not the directors' or auditors' approval.

Items That Are Dissimilar in Nature Must Be Presented Separately