Paragraph 98 of AASB 101 Lists Some Circumstances That May

question 3

Multiple Choice

Paragraph 98 of AASB 101 lists some circumstances that may give rise to separate disclosure of items of income and expense.They include:

• A) reversals of inventory write-downs.
• B) extraordinary items.
• C) finance costs.
• D) distribution costs.

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Definitions:

Break-Even Sales

The level of sales at which total revenues equal total costs, resulting in neither profit nor loss for the business.

Common Fixed Expenses

Common fixed expenses are costs that do not fluctuate with the volume of production or sales, shared by different segments or products of a business, like rent and insurance.

Operating Period

The span of time during which a company or a project is expected to operate or carry out its activities.

Break-Even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in a net income of zero.