In What Way Is the Asset Measurement Requirement in AAS

question 33

Multiple Choice

In what way is the asset measurement requirement in AAS 25 Financial Reporting by Superannuation Plans inconsistent with the treatment required in AASB 1023 Financial Reporting of General Insurance Activities?

• A) The requirement in AAS 25 is to measure assets at net market value whereas AASB 1023 requires the application of net realisable value.
• B) AAS 25 requires market values to be used for all investments, whereas in AASB 1023 market values are required for investments integral to the entity's general insurance activities.
• C) AAS 25 requires the use of market values whereas AASB 1023 requires the use of modified historical cost.
• D) The requirement in AAS 25 relates to all assets of the entity, whereas in AASB 1023 it relates only to investments integral to the entity's general insurance activities.

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Definitions:

Doubling Time

Number of years it takes for a population to double in size.

Growth Rate

The rate at which a living organism or part of an organism increases in size.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain or ecological functions.

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.