Under AASB 101 Additional Line Items,headings and Subtotals

question 40

Multiple Choice

Under AASB 101 additional line items,headings and subtotals:

• A) Are precluded as they provide unnecessary information that may confuse the user.
• B) Shall be presented on the face of the statement when such presentation is relevant to an understanding of the entity's financial performance.
• C) Shall be presented on the face of the statement when such items can be measured reliably and it is probable these events will occur.
• D) Will only be included in the notes to the income statement if they are relevant to an understanding of the entity's financial performance.
• E) None of the given answers.

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Definitions:

Framing Effects

How people's decisions and perceptions can be influenced by how information is presented to them or framed.

Framing

The process of constructing the perspective or viewpoint from which a narrative, problem, or situation is perceived and interpreted.

Loss Averse

A psychological phenomenon where individuals prefer avoiding losses over acquiring equivalent gains, emphasizing the idea that losses are more impactful on an individual's emotional state than an equal amount of gain.

Making a Decision

The cognitive process of selecting a course of action from among multiple alternatives, often involving weighing the risks and benefits of different options.