AASB 131 Requires That Contingent Liabilities

question 20

Multiple Choice

AASB 131 requires that contingent liabilities:

• A) Arising from jointly controlled operations (only) be disclosed in the financial statements of the venturers regardless of whether or not they are parent entities and so prepare group accounts.
• B) Arising from jointly controlled operations and jointly controlled entities be disclosed in the group accounts (only) of the venturers.
• C) Arising from joint venture activities be aggregated with all other contingent liabilities.
• D) Arising from either jointly controlled entities or jointly controlled operations be separately disclosed.
• E) None of the given answers.

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Definitions:

Rental Payments

Periodic payments made by a lessee to a lessor for the use of an asset.

Received

A term denoting that something has been accepted or collected, often used in financial transactions or in the acknowledgment of messages or goods.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Fiscal Period

A specific time period used for accounting purposes and financial reporting, typically a year, broken into quarters or months.