The Notes to the Accounts That Relate to Income and Expense

question 61

Multiple Choice

The notes to the accounts that relate to income and expense should include:

• A) only commentary on issues covered by AASB 101.
• B) a variety of information that incorporates the disclosures required in all standards related to income and expenses.
• C) only information that would have resulted in a different profit or loss figure if it had been included on the face of the statement.
• D) only items that were deemed non-material when selecting items to place on the face of the accounts.

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Definitions:

External Benefit

A benefit that affects people other than the direct consumers or producers of a good or service, often leading to positive spillover effects.

Negative Externality

A situation where a third party suffers from a transaction or activity they are not directly involved in, often leading to market failure if not corrected by government intervention.

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed.

Licenses

Official permissions or permits to do, use, or own something.