In accordance with Corporations Act,which of the following companies will be required to conform to the Australian Accounting Standards in the preparation of their financial reports?
I.proprietary company with gross operating revenues of $12 million,gross assets of $4 million and number of employees totalling 80
II.proprietary company with gross operating revenues of $6 million,gross assets of $4 million and number of employees totalling 60
III.company listed on the stock exchange
IV.company that issued a public debt
V.reporting entities
A) I, II, III, and IV only
B) I, III, IV and V only
C) I, III and IV only
D) III, IV and V only

Question

Quizplus · Accepted Answer

According to the Corporations Act, companies listed on stock exchanges, companies that issued public debt and reporting entities must conform to Australian Accounting Standards. Therefore, options III, IV, and V are required to follow these standards. The size of the company, as presented in options I and II, is not a factor in determining the requirement to follow Australian Accounting Standards. Therefore, option I and II are not included in the answer.

In Accordance with Corporations Act,which of the Following Companies Will