One Approach to Revenue Recognition Proposed for Biological Assets Is

question 24

Multiple Choice

One approach to revenue recognition proposed for biological assets is to recognise volume changes as revenue or expense but to treat price changes as an adjustment to equity through a reserve.Arguments that support this approach include:

• A) Price changes have not been realised and so should not be recognised in the income statement.
• B) Treating price changes as a non-distributable reserve protects the operating capability of the entity.
• C) The biological development of a self-generating and regenerating asset is clearly distinguishable and separately measurable from changes in price.
• D) The treatment should be equivalent to that used in other reporting standards such as AAS 25 'Financial Reporting by Superannuation Funds'.
• E) None of the given answers.

Understand the role and impact of cultural values and social norms within a society.

Appreciate the importance of diversity and across-cultures competencies in fostering organizational strength and respect for individual uniqueness.

Develop communication skills critical for effective leadership and performance in diverse and global organizational environments.

Learn strategies for successful career advancement including networking, skill development, and creating opportunities within and outside organizations.

---

Definitions:

Reinforcement Theory

A theory that states that behavior is a function of its consequences and is determined exclusively by environmental factors such as external stimuli and other reinforcers.

Dispute

A disagreement or argument, typically one that is prolonged, public, and heated.

Distinctiveness

The quality of being clearly different or unique in comparison to other entities or objects.

Consistency

The quality of always behaving or performing in a similar way, maintaining the same standards over time.