AASB 1037 and AASB 141 Have Been Criticised on the Grounds

question 46

Multiple Choice

AASB 1037 and AASB 141 have been criticised on the grounds that:

• A) their affect is to overstate the payout ratio relative to companies in the US.
• B) they emphasise reliability over relevance in asset measurement.
• C) they limit the accounting methods available to report on these types of assets.
• D) they will hinder the timely production of financial reports.

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Definitions:

Order Fulfillment Department

The division within a company responsible for processing orders and ensuring products are delivered to customers efficiently.

Capacity Analysis

The evaluation of a system's potential to produce goods or complete tasks within a certain period, considering limitations in production.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products based on the actual time resources are used in the production, improving accuracy in cost allocation.

Customer Service Department

A division of a company responsible for handling interactions and inquiries from customers.