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:

Cost-of-living Raises

Adjustments in salary or wages to counteract inflation, ensuring the purchasing power of an employee's income remains steady.

Equity

Refers to fairness or justice in the way people are treated.

Equality

The state of being equal, especially in status, rights, or opportunities, and often related to the fair treatment of individuals regardless of various differences.

Prosocial

Behaviors that are intended to help or benefit others.