Paragraph 87 of AASB 101 Lists Some Circumstances That May

question 61

Multiple Choice

Paragraph 87 of AASB 101 lists some circumstances that may give rise to separate disclosure of items of income and expense.They include:

• A) Reversals of inventory write-downs.
• B) Extraordinary items.
• C) Finance costs.
• D) Distribution costs.
• E) All of the given answers.

Explain the concept of premium and its significance in insurance policies.

Distinguish between the insurer and the insured.

Understand how life insurance policies can be modified and their implications.

Recognize the conditions under which insurance policies can be void or voidable.

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Definitions:

Financial Activities

Transactions involving changes in equity, debt, and investments that affect a company's cash flow.

Objective Analysis

A method of evaluation or research that is based on fact and is not influenced by personal feelings or opinions.

MD&A

Management Discussion and Analysis, a section of a company's financial report where management discusses the financial and operational factors influencing results.

Comprehensive Annual Financial Reports

Detailed financial reports prepared by governments that include a wide range of financial information including the results of financial operations, condition of funds, and compliance information.