Question 1

Explain the purpose of AASB 101 and its requirements for the statement of changes in equity.

Accepted Answer

The statement of changes in equity is de

Question 2

Which of the following is an example of a non- adjusting events after the reporting date?

Accepted Answer

A) a bank's withdrawal of a necessary line of credit to a company that had been facing financial difficulties during the financial year 
B) the discovery of fraud or errors that show that the financial statements are incorrect 
C) a decline in the market value of listed investments after the end of the reporting period 
D) settlement,after the end of the reporting period,of legal action taken against the entity that establishes the exact amount of the claim that was in existence,but uncertain,at reporting date 
A) a bank's withdrawal of a necessary line of credit to a company that had been facing financial difficulties during the financial year 
B) the discovery of fraud or errors that show that the financial statements are incorrect 
C) a decline in the market value of listed investments after the end of the reporting period 
D) settlement,after the end of the reporting period,of legal action taken against the entity that establishes the exact amount of the claim that was in existence,but uncertain,at reporting date

Question 3

Define the concept of materiality and identify the requirements in AASB 1031 for determining whether information is material.

Accepted Answer

Information is material if its omission,

Question 4

Which of the following factors does not provide the rationale for the provision of cash flow information?

Accepted Answer

A) a positive cash flow is essential for an entity's financial viability and survival 
B) accrual- based profit always equals cash flow 
C) most financial statement users have an interest in cash flow in terms of the cash returns they can expect from their investments 
D) accrual- based profit does not necessarily equal cash flow 
A) a positive cash flow is essential for an entity's financial viability and survival 
B) accrual- based profit always equals cash flow 
C) most financial statement users have an interest in cash flow in terms of the cash returns they can expect from their investments 
D) accrual- based profit does not necessarily equal cash flow

Question 5

Applying a new accounting policy to transactions,other events or conditions as if that policy had always been applied is known as:

Accepted Answer

A) consequent application 
B) retrospective application 
C) prospective application 
D) subsequent application 
A) consequent application 
B) retrospective application 
C) prospective application 
D) subsequent application

Question 6

The principal revenue- producing activities of the entity and other activities that are not investing or financing activities are referred to as:

Accepted Answer

A) investing activities 
B) financing activities 
C) equity activities 
D) operating activities 
A) investing activities 
B) financing activities 
C) equity activities 
D) operating activities

Question 7

Specific disclosure requirements for concise financial reports mandated in AASB 1039 include:

Accepted Answer

A) sales revenue in accordance with AASB 118 
B) comparative information for the preceding financial year 
C) the presentation currency used 
D) all of the above 
A) sales revenue in accordance with AASB 118 
B) comparative information for the preceding financial year 
C) the presentation currency used 
D) all of the above

Question 8

If the omission,misstatement or non- disclosure of information could have the potential,individually or collectively,to influence decisions by users taken on the basis of the financial report,the information is defined by AASB 1031 as being:

Accepted Answer

A) important 
B) significant 
C) material 
D) none of the above 
A) important 
B) significant 
C) material 
D) none of the above

Explain the purpose of AASB 101 and its requirements for the statement of changes in equity.

Which of the following is an example of a non- adjusting events after the reporting date?

Define the concept of materiality and identify the requirements in AASB 1031 for determining whether information is material.

Which of the following factors does not provide the rationale for the provision of cash flow information?

Applying a new accounting policy to transactions,other events or conditions as if that policy had always been applied is known as:

The principal revenue- producing activities of the entity and other activities that are not investing or financing activities are referred to as:

Specific disclosure requirements for concise financial reports mandated in AASB 1039 include:

If the omission,misstatement or non- disclosure of information could have the potential,individually or collectively,to influence decisions by users taken on the basis of the financial report,the information is defined by AASB 1031 as being:

The Nature and Environment of Companies

Company Formation, Share Capital and Debt Securities

Reserves and Profit Distribution

Published Financial Statements

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Principles of Consolidation

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interests

Consolidation: Indirect Non-Controlling Interests

Accounting for Associates

Accounting for Joint Ventures

Accounting for Foreign Currency

Capital Reorganisation

External Administration, Including Liquidation

Key Issues in Australian Corporate Governance

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Exam 11: Additional Accounting Standards and Disclosures

Explain the purpose of AASB 101 and its requirements for the statement of changes in equity.

Which of the following is an example of a non- adjusting events after the reporting date?

Define the concept of materiality and identify the requirements in AASB 1031 for determining whether information is material.

Which of the following factors does not provide the rationale for the provision of cash flow information?

Applying a new accounting policy to transactions,other events or conditions as if that policy had always been applied is known as:

The principal revenue- producing activities of the entity and other activities that are not investing or financing activities are referred to as:

Specific disclosure requirements for concise financial reports mandated in AASB 1039 include:

If the omission,misstatement or non- disclosure of information could have the potential,individually or collectively,to influence decisions by users taken on the basis of the financial report,the information is defined by AASB 1031 as being:

The Nature and Environment of Companies

Company Formation, Share Capital and Debt Securities

Reserves and Profit Distribution

Published Financial Statements

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Principles of Consolidation

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interests

Consolidation: Indirect Non-Controlling Interests

Accounting for Associates

Accounting for Joint Ventures

Accounting for Foreign Currency

Capital Reorganisation

External Administration, Including Liquidation

Key Issues in Australian Corporate Governance

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