The New Version of AASB 1023 Has Gone Some Way

question 38

Multiple Choice

The new version of AASB 1023 has gone some way to reducing the volatility in earnings but:

• A) Some volatility will remain with the required application of AASB 140.
• B) This volatility will be completely removed when the IASB complete their Insurance Project.
• C) The introduction of the requirement to apply AASB 139 will introduce further volatility to the accounts.
• D) Some volatility will remain with the required application of AASB 140 and the introduction of the requirement to apply AASB 139 will introduce further volatility to the accounts.
• E) None of the given answers.

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Definitions:

Influential Points

Data points that have a disproportionately large effect on the results of a statistical analysis, potentially skewing the analysis.

Scatterplot

A graphical representation where individual data points are plotted on a two-dimensional plane, showcasing the relationship between two variables.

Precipitation

Any form of water - liquid or solid - falling from the sky, including rain, snow, sleet, and hail.

Linear Relationship

A type of association where a change in one variable is directly proportional to a change in another variable.