One Important Aim of Releasing AAS 24 in 1991 and Amendments

question 61

Multiple Choice

One important aim of releasing AAS 24 in 1991 and amendments made to The Corporations Law in the same year was to:

• A) require parent entities to consolidate companies that they controlled into one set of financial statements for the first time.
• B) change the treatment of non-controlling interests to be reflected in the accounts as a liability.
• C) prevent companies from keeping debt off the statement of financial position consolidated statement of financial position by interposing partnerships or trusts in the group structure.
• D) require the consolidation of the cash-flow statement as well as the statement of financial position and statement of comprehensive income.

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Definitions:

Budgeting Process

The systematic approach to allocate financial resources and planning future expenditures and savings.

Delaying Sales

A strategy where sellers postpone transactions in anticipation of better market conditions or prices.

Accelerating Expenses

Expenses that increase at a faster rate than usual, often outpacing revenue growth.

Channel Stuffing

A practice where a company inflates its sales and earnings figures by deliberately sending retailers along its distribution channel more products than they can sell to the end-user.