单选题 Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting. Which of the following accounting treatments correctly applies the principle of faithful representation?

A、 Reporting a transaction based on its legal status rather than its economic substance
B、 Excluding a subsidiary from consolidation because its activities are not compatible with those of the rest of the group
C、 Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to equity shares as debt (liability)
D、 Allocating part of the sales proceeds of a motor vehicle to interest received even though it was sold with 0%(interest free) finance

【正确答案】 D

【答案解析】The substance is that there is no ‘free’ finance; its cost, as such, is built into the selling price.