Wattle Ltd Is in the Process of Completing Its Financial

question 59

Multiple Choice

Wattle Ltd is in the process of completing its financial reports for the period ended 30 June 2014 when its accountant completes the collection of information about the realisable value of inventory as at reporting date.A number of items are reflected at a cost greater than net realisable value with a material effect on the accounts.What treatment does AASB 110 require for this event?

• A) It should be disclosed in the Directors' Declaration.
• B) The effect on the accounts should be disclosed in the notes to the financial statements.
• C) No disclosure is required.
• D) The financial statements should be adjusted to reflect the impact of the event.

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Definitions:

Continuously Modified

Subjected to ongoing changes or alterations in order to adapt or improve.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

Experience

The knowledge or skill acquired by a period of practical involvement in an activity.

Corticospinal Fibers

Neural pathways that transmit movement-related signals from the cerebral cortex to the spinal cord.