The New Version of AASB 1023 Has Gone Some Way

question 38

Multiple Choice

The new version of AASB 1023 has gone some way to reducing the volatility in earnings but:

• A) Some volatility will remain with the required application of AASB 140.
• B) This volatility will be completely removed when the IASB complete their Insurance Project.
• C) The introduction of the requirement to apply AASB 139 will introduce further volatility to the accounts.
• D) Some volatility will remain with the required application of AASB 140 and the introduction of the requirement to apply AASB 139 will introduce further volatility to the accounts.
• E) None of the given answers.

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Definitions:

Social Responsibility

The obligation of individuals and organizations to act in ways that benefit society at large, often beyond legal or financial requirements.

Defensive Strategy

Business tactics aimed at protecting the company's market share, revenue, and profits from competitors or changing market conditions.

Minimalist Strategy

An approach focusing on minimum necessary actions or resources required to achieve desired outcomes, emphasizing simplicity and efficiency.

Corporate Social Responsibility

The principle that companies should contribute positively to society by taking responsibility for the impact of their activities on customers, employees, communities, and the environment.