AASB 110 Requires That Adjusting Events That Meet Two Broad

question 49

Multiple Choice

AASB 110 requires that adjusting events that meet two broad criteria should be:

• A) Reflected in the financial information in the statements if it is material and relates to an item that would normally be reflected in the financial statements.
• B) Always disclosed by way of a note to the financial statements.
• C) If an unfavourable event, disclosed as a contingent liability.
• D) If an unfavourable event, reflected in the financial statements; if a favourable event, disclosed by way of note.
• E) None of the given answers.

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Definitions:

Ulva

A genus of green algae, commonly known as sea lettuce, found in marine and brackish water environments.

Nori

A type of edible seaweed often used in Japanese cuisine, especially for wrapping sushi.

Red Algae

A group of primarily aquatic photosynthetic organisms known for their reddish pigments, which allow them to live at greater depths than many other photosynthetic species.

Green Algae

A diverse group of photosynthetic organisms found in various aquatic environments, considered important precursors to land plants and characterized by green chlorophyll pigments.