The Description of 'Probable' in the AASB Framework Means That

question 34

Multiple Choice

The description of 'probable' in the AASB Framework means that:

• A) Assessments of the degree of uncertainty attaching to the flow of economic benefits are made on the basis of evidence.
• B) Assets will be recognised if the expected probability of future benefits arising is less than 50%.
• C) A high degree of professional judgment may be required in preparing accounting reports.
• D) Assessments of the degree of uncertainty and a high degree of professional judgment may be required in preparing accounting reports.

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Definitions:

Expectancy Theory

A theory in psychology that proposes an individual's motivation is related to their expected outcomes of a behavior and the value they place on those outcomes.

External Locus of Control

A psychological concept suggesting that individuals believe external forces or circumstances primarily determine their life events and outcomes.

Situational

Related to or dependent on a particular set of circumstances or context.

Dispositional

Relating to the inherent qualities, traits, or tendencies that contribute to a person's enduring behavior patterns or characteristics.