In Relation to Share Capital, AASB 101 Does Not Require

question 21

Multiple Choice

In relation to share capital, AASB 101 does not require disclosure in the financial statements of:

• A) the number of shares on issue at the end of the year.
• B) the total dollar value of share capital at the end of the year.
• C) restrictions on dividends payable to certain classes of shareholders.
• D) the amount of any over- or under-subscription of new share issues during the year.

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Definitions:

Status Quo Bias

The tendency for people to prefer things to stay the same by doing nothing or sticking with a decision made previously.

Prospect Theory

A psychological theory that describes how people make decisions based on the potential value of losses and gains rather than the final outcome.

Endowment Effect

A psychological phenomenon where people ascribe more value to things merely because they own them.

Prospect Theory

A behavioral economic theory that describes how people make decisions under conditions of risk and uncertainty, prioritizing losses differently from gains.