Which of the Following Statements Is Not in Accordance with AAS

question 55

Multiple Choice

Which of the following statements is not in accordance with AAS 25 Financial Reporting by Superannuation Plans?

• A) Assets of a defined contribution plan and a defined benefit plan are measured at net market values as at the reporting date.
• B) Obligations for accrued benefits of a defined benefit plan should be discounted to their present value, but there is no requirement to discount other liabilities at the reporting date.
• C) For a defined contribution plan the change in net market values of the plan's financial liabilities since the beginning of the reporting period is included in the profit or loss for the reporting period.
• D) For a defined benefit plan, the change in net market values of the plan's financial liabilities since the beginning of the reporting period, included equity for the reporting period.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Revenue

The additional income earned from selling one more unit of a good or service, a key factor in decision-making for producing additional units.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Price-taker Model

An economic model describing a company or entity that must accept the prevailing prices in the market of its products because it does not have the market power to change them.