AASB 107/IAS 7 Does Not Require, but Encourages, the Disclosure

question 11

Multiple Choice

AASB 107/IAS 7 does not require, but encourages, the disclosure of:
I. The name(s) of the entity's bankers.
II. The aggregate amount of cash flows that represent increases in operating capacity separately from those cash flows that are required to maintain operating capacity.
III. The amount of the cash flows arising from the operating, investing and financing activities of each reportable segment.
IV. The amount of undrawn borrowing facilities that may be available for future operating activities and to settle capital commitments, indicating any restrictions on the use of these facilities.

• A) I, II and IV.
• B) I, III and IV.
• C) II, III and IV.
• D) I, II and III.

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Definitions:

Present Value

The modern-day value of a sum of money to be received in the future, adjusted for a specific rate of return.

Electricity Bill Savings

The reduction in the cost of electricity consumption, often achieved through energy-efficient practices or devices.

Asset Beta

A measure of the systematic risk of a firm's assets, used in the Capital Asset Pricing Model (CAPM) to determine the expected return of the asset.

Market Rate

Market rate, in economics, refers to the prevailing price of goods, services, or labor in a competitive market, determined by supply and demand dynamics.