Wattle Ltd Is in the Process of Completing Its Financial

question 60

Multiple Choice

Wattle Ltd is in the process of completing its financial reports for the period ended 30 June 2009 when its accountant completes the collection of information about the realisable value of inventory as at reporting date.A number of items are reflected at a cost greater than net realisable value with a material effect on the accounts.What treatment does AASB 110 require for this event?

• A) It should be disclosed in the Directors' Declaration.
• B) The effect on the accounts should be disclosed in the notes to the financial statements.
• C) No disclosure is required.
• D) The financial statements should be adjusted to reflect the impact of the event.
• E) None of the given answers.

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Definitions:

Poverty Line

A specified threshold of income deemed necessary to meet basic living costs, below which individuals or families are considered to be living in poverty.

Income Inequality

The unequal distribution of annual or lifetime income among individuals or households within a society.

Pre-Tax-And Transfer Income

The total income of individuals or households before taxes are deducted and before any government transfers, such as subsidies or welfare, are added.

Trend

A general direction in which something is developing or changing over time.