A Recent Noteworthy Development in Relation to Australian Stock Exchange

question 62

Multiple Choice

A recent noteworthy development in relation to Australian Stock Exchange (ASX) -required disclosures is the establishment of the ASX Corporate Governance Council,and the issue of Principles of Good Corporate Governance and Best Practice Recommendations.In relation to these principles:

• A) All companies governed by the Corporations Act 2001 must abide by these principles and recommendations.
• B) The Australian Accounting Standards Board (AASB) has incorporated the principles and recommendations into the Accounting Framework.
• C) All ASX-listed companies are compelled by law to comply in entirety with these principles and recommendations.
• D) All ASX-listed companies must follow these principles and recommendations, and where they have not, they must identify the fact that they have not and give reasons for not following them.

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Definitions:

Asset Accounts

Accounts on a balance sheet that represent the resources owned by a company, which have value and can provide future benefits.

Common Stock

Equity ownership in a corporation, entitling holders to vote at shareholder meetings and to receive dividends.

T-account

A visual representation used in accounting to depict the debit and credit sides of an account.

Debits

Financial transactions representing increases in assets or expenses or decreases in liabilities, equity, and income.