An Item Must Be Outside the Ordinary Operations of the Business

question 37

True/False

An item must be outside the ordinary operations of the business or be of a non-recurring nature to be classified as an extraordinary item under AASB 101.

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Definitions:

Accounting Equation

The foundational formula in accounting that represents the relationship between a company's assets, liabilities, and equity: Assets = Liabilities + Equity.

Accounting Equation

The foundational equation in accounting, Assets = Liabilities + Owner’s Equity, ensuring balance in financial reporting.

Assets

Economic resources owned or controlled by a business or individual, expected to produce future benefits.

Equity

The amount of ownership interest in a company, typically represented by the shares held by its shareholders.