AASB 131 Requires Which of the Following Capital Commitments to Be

question 51

Multiple Choice

AASB 131 requires which of the following capital commitments to be separately disclosed?

• A) Capital commitments arising from joint ventures including those that have been contracted jointly with other venturers.
• B) Capital commitments arising from guarantees provided for the liabilities of the other venturers.
• C) The share of capital commitments of jointly controlled entities for which the entity will be liable.
• D) Capital commitments arising from joint ventures including those that have been contracted jointly with other venturers and the share of capital commitments of jointly controlled entities for which the entity will be liable.
• E) All of the given answers.

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Definitions:

Forming Department

A division within a manufacturing process where raw materials begin their transformation into finished products, typically through shaping or molding.

Materials Cost

The total expense of materials used in the production of a product, including direct materials and any additional materials necessary for production.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all inventory items, weighted by the quantity of each item.