Under AASB 127

question 2

Multiple Choice

Under AASB 127:

• A) Management may agree with the auditors a flexible arrangement for the presentation of the group accounts where some companies or trusts within the group have a nature of business or location that makes their pattern of return and risk significantly different to the remaining entities in the group.
• B) Companies that are non-homogeneous with the overall nature of the business of the group are prohibited from being consolidated and are required to have their financial statements presented separately.
• C) Finance companies, which are highly geared by nature, are not required to be included in the consolidated accounts of groups that are not significantly involved in the finance business.
• D) Companies within a group that are in distinctly different businesses do not have to be consolidated into a single set of consolidated accounts.
• E) None of the given answers.

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Definitions:

Continuance Commitment

An employee's psychological attachment to an organization based on the costs that they perceive associated with leaving it.

Normative Commitment

The feeling of obligation an individual has to continue in an organization because of their personal values, ethics, or commitments.

Affective Commitment

An emotional attachment or sense of loyalty of an individual towards an organization, which influences their willingness to continue membership.

Forms of Commitment

Different types of psychological bonds that influence an individual's attachment and loyalty to an organization or cause.