It Is Common for Companies Applying AASB 141/IAS 41 To

question 12

Multiple Choice

It is common for companies applying AASB 141/IAS 41 to:

• A) attempt to 'bury' the fair value movements attributable to agricultural assets in 'other expenses'.
• B) disclose the fair value movements attributable to agricultural assets as part of 'abnormal' items.
• C) remain silent in the financial statements about the fair value movements attributable to agricultural assets, but highlight such items in 'financial commentaries'.
• D) separately disclose the fair value movements attributable to agricultural assets in the statement of profit or loss and other comprehensive income or the notes.

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Definitions:

Deferral Method

An accounting practice where revenue or expenses are recognized at a date later than when they were initially incurred, often applied to revenue received in advance or prepayments of expenses.

Pledge

A commitment or security for the payment of a debt, performance of an action, or purchase of a good.

Estate

The total value of all the assets owned by an individual at the time of their death, including property, cash, and investments, minus any liabilities.

Interest Income

Income earned from lending funds or depositing money in interest-bearing accounts.