Question 1

In summary,AASB 1054 prescribes disclosures relating to the following items:

Accepted Answer

AASB 1054 requires entities to disclose whether they are for-profit or not-for-profit, as this affects the application of certain accounting standards.

Question 2

Discuss the importance of discrete reporting. What changes have been made AASB 134 and AASB 136 to improve 'Impairment of Assets'?

Accepted Answer

The answer of Discuss the importance of discrete reporting. What...

Question 3

The treatment of items that clearly belong to past reporting period is a long-standing problem.One way to handle this problem is to make adjustments to the retained earnings.The problem with this approach is that:

Accepted Answer

Making adjustments to retained earnings to handle items from past reporting periods could lead to manipulation of profit for the current period. This is because adjustments to retained earnings can affect the current period's profit, and may not reflect the actual earnings for the current period. Therefore, this approach may not be the best way to handle items from past reporting periods.

Question 4

Where a business makes a change in an accounting policy,it must disclose:

Accepted Answer

When a company changes its accounting policy, it must disclose the nature of the change and the reasons for it, as well as the financial effects of the change if it has affected the current period's results or may affect the results of future periods. By disclosing this information, users of the financial statements will be able to better understand the company's financial performance and make informed decisions about investing in or lending to the company. Option A is not sufficient as it does not provide information about the potential impact of the change on the company's financial statements. Option B is too broad and could require the disclosure of immaterial changes. Option D is not sufficient as it does not provide information about the potential impact of the change on future periods.

Question 5

Concise financial reports:

Accepted Answer

Concise financial reports must be drawn up in accordance with AASB's, achieve consistency with the changes in terminology contained in AASB 101, and include a statement of comprehensive income, a statement of financial position, a statement of cash flows, and a statement of changes in equity. Therefore, all options are correct.

Question 6

Discuss the concept of the reporting entity and the rationale for the revisions to the International Financial Reporting Standards for small and medium sized entities.

Accepted Answer

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Question 7

Which of the following is not classified as a prior period error according to AASB 108?

Accepted Answer

Mistakes in estimating warranty costs are not classified as prior period errors according to AASB 108. They are considered changes in accounting estimates rather than errors.

Quiz 18: Further Financial Reporting Issues