To Account for Financial Instruments,there Are Three Relevant Accounting Standards

question 20

True/False

To account for financial instruments,there are three relevant accounting standards: AASB 7; AASB 132 and AASB 139:

---

Definitions:

Accumulated Other Comprehensive Income

The cumulative effect of other comprehensive income items, which is reported separately in the “Stockholders’ equity” section of the balance sheet.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period of time, leading to the net profit or loss for that period.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.