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:

Balance of Trade Deficit

An economic measure where a country's imports exceed its exports during a specific time period.

Imports and Exports

The practice of bringing goods and services into a country (imports) and sending goods and services out of a country (exports) to engage in international trade.

United States

A country located in North America comprised of 50 states, a federal district, five major self-governing territories, and various possessions, known for its diverse geography, culture, and economy.

Countertrade

A method of trade in which goods or services are exchanged for other goods or services rather than for money.