The Definition of Earnings Contained in AASB 133

question 43

Multiple Choice

The definition of earnings contained in AASB 133:

• A) Net profit attributable to ordinary shareholders of the parent entity net of preference dividends.
• B) Net profit excluding earnings attributable to minority interests and is measured before the costs of servicing equity other than dividends on ordinary shares are deducted.
• C) Net profit excluding earnings attributable to minority outside equity interests.
• D) Excludes any cumulative preference dividends not paid in the period and is measured before the costs of servicing equity other than dividends on ordinary shares are deducted.
• E) None of the given answers.

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Definitions:

Financing Activities

Financial operations that impact a company’s capital structure, including issuing debt, repaying loans, and equity transactions.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures, essential for expansion, dividends, and debt repayment.

Dividends

Payments made by a corporation to its shareholders, often as a distribution of profits.