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:

Organic

Pertaining to or derived from living organisms, in food production referring to practices that do not use synthetic pesticides or fertilizers.

Profit

The profit achieved when the revenue generated from a business operation surpasses the expenses, costs, and taxes needed to maintain the operation.

External Effects

Also known as externalities, these are positive or negative consequences of economic activities experienced by unrelated third parties.

Highly Differentiated

Products or services that are distinct and stand out from those of competitors because of features, quality, or design.