AASB 7 Imposes Further Detailed Disclosure Requirements for Which of the Following

question 85

Multiple Choice

AASB 7 imposes further detailed disclosure requirements for which of the following credit risks?

• A) the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
• B) the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
• C) the risk that the fair value of a financial instrument will fluctuate because of changes in market prices.
• D) the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices.

Identify exceptions to the statute of frauds, including the main purpose or leading object rule.

Recognize the significance of written evidence in proving contractual obligations.

Understand the role and requirements of the parol evidence rule in contract interpretation.

Analyze the impact of electronic communications on the statute of frauds through acts like the UETA and the E-Sign Act.

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Definitions:

Future Cash Flows

The expected flow of cash into and out of a business over future periods, crucial for investment appraisal and valuing businesses.

Board Of Directors

The Board of Directors is a group of elected individuals tasked with overseeing the major decisions and policies of a company.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership stakes and typically the right to vote on corporate matters.

Principals

Principals typically refer to the main parties involved in a transaction or operation, such as the owners or chief stakeholders of a company.