In What Way Is the Asset Measurement Requirement in AAS

question 14

Multiple Choice

In what way is the asset measurement requirement in AAS 25 'Financial reporting by superannuation plans' inconsistent with the treatment required in AASB 1023 'Financial reporting of general insurance activities'?

• A) The requirement in AAS 25 is to measure assets at net market value whereas AASB 1023 requires the application of net realisable value.
• B) AAS 25 requires market values to be used for all investments, whereas in AASB 1023 market values are required for investments integral to the entity's general insurance activities.
• C) AAS 25 requires the use of market values whereas AASB 1023 requires the use of modified historical cost.
• D) The requirement in AAS 25 relates to all assets of the entity, whereas in AASB 1023 it relates only to investments integral to the entity's general insurance activities.
• E) None of the given answers.

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Definitions:

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.

Auditory Canal

A tube-like structure that leads from the outer ear to the eardrum, playing a crucial role in directing sound waves to the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.