A Former Loophole (Now Closed)that Existed Under the Former S

question 17

Multiple Choice

A former loophole (now closed) that existed under the former s.9 of The Corporations Law:

• A) required the preparation of one set of consolidated accounts for the group.
• B) required the preparation of separate accounts for each body corporate in the group.
• C) gave the choice of using full consolidation, proportional consolidation or the equity method of accounting.
• D) gave the choice of one set, or two or more sets, of consolidated accounts; or separate accounts for each body corporate; or a combination.

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Definitions:

Starting Position

The initial condition or status from which a process, negotiation, or competition begins.

Framing Effects

The influence on decision-making and judgments caused by the way information is presented, rather than just the information itself.

Utility

The total satisfaction or benefit derived by consuming a product or service, used to analyze choices made by consumers to maximize satisfaction.

Planning Fallacy

is the tendency to underestimate the time, costs, and risks of future actions while overestimating the benefits, leading to time and budget overruns.