Wattle Ltd Is in the Process of Completing Its Financial

question 60

Multiple Choice

Wattle Ltd is in the process of completing its financial reports for the period ended 30 June 2009 when its accountant completes the collection of information about the realisable value of inventory as at reporting date.A number of items are reflected at a cost greater than net realisable value with a material effect on the accounts.What treatment does AASB 110 require for this event?

• A) It should be disclosed in the Directors' Declaration.
• B) The effect on the accounts should be disclosed in the notes to the financial statements.
• C) No disclosure is required.
• D) The financial statements should be adjusted to reflect the impact of the event.
• E) None of the given answers.

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Definitions:

Arousal

A state of physiological and psychological alertness and readiness, often triggered by stimuli in the environment.

Performance

The act of carrying out a task or the level of efficiency and effectiveness with which it is completed.

Gender Differences

Variations in characteristics, behaviors, or attitudes between males and females that are attributed to gender.

Empathy

The ability to understand and share the feelings of another.