If Apple Won an Order to Sell 500 of Its

question 42

Multiple Choice

If Apple won an order to sell 500 of its new minicomputers to Australia,but the Australian government stipulated that 20 percent of the component parts of the minicomputers that it purchased must be produced in Australia,that stipulation would be an example of a(n)

• A) ad valorem content requirement.
• B) specific content requirement.
• C) ad hoc content requirement.
• D) local content requirement.
• E) domestic producer content.

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Definitions:

Successful Efforts Method

An accounting approach used in the oil and gas industry where costs are capitalized only if successful in finding hydrocarbons.

Provision

A liability of uncertain timing or amount.

IFRIC 1

relates to the International Financial Reporting Interpretations Committee's guidance on the treatment of changes in decommissioning, restoration, and similar liabilities, affecting how entities account for such changes.

AASB 137

An Australian accounting standard that deals with the accounting and reporting of provisions, contingent liabilities, and contingent assets.