In a Horizontal Analysis, If an Item Has a Small

question 10

True/False

In a horizontal analysis, if an item has a small value in the base year and a large value in the next year, the percentage change will NOT be meaningful.

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Definitions:

IAS 41

An international accounting standard that deals with the agriculture sector, detailing how agricultural assets and agricultural activity should be accounted for.

AASB 116

Refers to the Australian Accounting Standards Board's standard on Property, Plant, and Equipment, outlining the accounting treatment for these assets.

AASB 141

An accounting standard issued by the Australian Accounting Standards Board that deals with the agricultural sector, specifically the accounting for agricultural activity.

IAS 16

An International Accounting Standard outlining the accounting treatments for property, plant, and equipment, including its recognition and measurement.