AASB 102 Inventories Requires Items of Inventories That Are Used

question 26

Multiple Choice

AASB 102 Inventories requires items of inventories that are used by a business as components in a self-constructed property asset to be:

• A) added to a 'property construction' provision account.
• B) capitalised and depreciated.
• C) expensed directly into equity in the period in which the items are used.
• D) aggregated into 'cost of goods sold' in the period in which the items are used.

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Definitions:

Stanley Milgram

A psychologist best known for his seminal research on obedience to authority, which demonstrated that people are willing to obey authority figures to a surprising degree, even when asked to perform actions conflicting with their personal conscience.

Obedience

Compliance with orders or commands given by authority figures.

Agents of Destruction

Factors or entities that cause damage or destruction, potentially in various contexts including environmental, social, or physical.

Group Pressure

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to conform to group norms.