The Balance Sheet Approach Adopted in AASB 112

question 47

Multiple Choice

The balance sheet approach adopted in AASB 112:

• A) Will continue to be used as the alternatives are too simplistic.
• B) Will only be understood by the very sophisticated financial readers.
• C) Uses existing balance sheet data thus reducing record keeping costs.
• D) Will only be understood by the very sophisticated financial readers and uses existing balance sheet data thus reducing record keeping costs.
• E) None of the given answers.

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Definitions:

Competitive Environment

describes the external factors that affect a firm's ability to compete in the market, including the number and capability of competitors.

Philanthropy

The act of donating money, goods, services, and time to support causes beneficial to the public good, often aimed at improving welfare and quality of life.

Social Responsibility Pyramid

A theoretical framework suggesting that businesses have multiple layers of responsibilities, ranging from economic, to legal, ethical, and philanthropic duties.

Bottom Level

The lowest tier or position within a hierarchical structure, often referring to entry-level positions in an organization or the base layer of a system.