AASB 8 Specifies Guidelines Regarding Whether or Not a Segment

question 3

True/False

AASB 8 specifies guidelines regarding whether or not a segment is reportable.These guidelines are known as the 10 per cent rules.All three rules are required to be met in order to establish a reportable segment.

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Definitions:

Tax-deferred

Pertaining to investments, savings, or accounts that allow earnings to accrue without being subject to immediate tax until a later date.

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, allowing the interest to earn interest each month.

Ordinary Perpetuity

A perpetuity in which the payments are at the end of each payment interval.