Exam 16: The Statement of Comprehensive Income and Statement of Changes in Equity

A statement of comprehensive income that includes revenue,other income,employee benefits and costs,motor vehicle expenses would have been prepared using the:

Following are the items of income and expense recognised during the period by Murray Ltd: I Foreign exchange differences II Losses on ineffective cash flow hedges III Retrospective adjustment from a change in accounting policy Actuarial losses on defined benefit pension plans IV Prior period error discovered VI Prospective adjustment resulting from a change in accounting estimates Which of the following combinations identify all items permitted in AASB 101 'Presentation of Financial Statements to be presented under other comprehensive income?

Paragraph 98 of AASB 101 lists some circumstances that may give rise to separate disclosure of items of income and expense.They include:

Which of the following statements is not in accordance with AASB 101 Presentation of Financial Statements with respect to the statement of comprehensive income?

AASB 101 permits entities to present the components of other comprehensive income either before tax effects (gross presentation)or after their related tax effects (net presentation).

When items of income and expense are material,and their nature and amount are separately disclosed,this could indicate the existence of:

The choice between reporting expenses by nature or by function is extremely important,as different net profit figures are derived depending upon the choice made.

An entity is required in AASB 101 to produce:

'If we were to look only at the expenses and income … recorded in the income statement we would not get a full picture of all expenses and income that were recognised in the current period'.Explain what this statement means,and other items that need to be 'looked at'?

Amounts reclassified to profit or loss in the current period that were recognised in 'other comprehensive income' in the current or previous periods are known as a:

Where a change in accounting estimates occurs,the following should be disclosed:

All adjustments to equity other than those related to transactions with owners in their capacity as owners are disclosed in the statement of comprehensive income (AASB 101).

When selecting a presentation format for the statement of comprehensive income management must select the one that is:

If the exercise (strike)price of a call option is greater than the current share price,the option is said to be 'in-the-money'.

According to AASB 101,the income statement provides a total profit figure to which opening retained earnings is added and from which dividends are deducted.

Which of the following items does not give rise to a reclassification adjustment from components of other comprehensive income to profit and loss?

Changes in accounting policy are to be made retrospectively or prospectively,depending upon the background to the change.

Components of 'other comprehensive income' would include:

Government departments are now required to embrace traditional financial accounting methods.Opponents of this requirement suggest that:

Under AASB 101 additional line items,headings and subtotals: