AASB 101 Requires That a Reconciliation Between the Carrying Amount

question 20

Multiple Choice

AASB 101 requires that a reconciliation between the carrying amount of each class of contributed equity capital and each reserve at the beginning and end of each period be disclosed in:

• A) the statement of changes in equity only.
• B) the notes to the financial statements only.
• C) Statement of profit or loss and other comprehensive income.
• D) either the statement of changes in equity or the notes to the financial statements.

---

Definitions:

Price Variance

The difference between the actual cost of a good or service and its expected cost, often used in budgeting and financial analysis.

Labor Price Variance

The difference between the actual cost of labor and the standard cost expected for that labor, used in budgeting and cost management.

Quantity Variance

Quantity variance refers to the difference between the expected and actual quantity of materials or inputs used in the production process, impacting cost.

Standards

Predetermined benchmarks or norms used for measuring performance and setting expectations in various contexts, including production, quality, and accounting.