One of the Requirements for Setting Off in AASB 132

question 36

Multiple Choice

One of the requirements for setting off in AASB 132 is the intention to offset.Which of the following statements about the "intention to set off" is correct?

• A) The intention to offset is only required where the legal right to set-off is disputed.
• B) Without the intention to offset the past cash flows of the entity will not be affected.
• C) The intention of both parties to settle is insufficient unless a legal right exists.
• D) Must be stipulated in writing for it to apply under ASB 132.
• E) None of the given answers.

Calculate the change in bond prices given duration and a change in yield.

Distinguish between Macaulay duration and modified duration.

Understand and apply the concept of convexity in bond pricing.

Calculate the duration of zero-coupon bonds.

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Definitions:

Preganglionic Sympathetic

Pertains to the neurons that run from the central nervous system to a ganglion in the sympathetic part of the autonomic nervous system.

Acetylcholine

A neurotransmitter in the body that is involved in muscle activation, heart rate, and many other functions in the nervous system.

Autonomic Muscarinic Receptors

A type of receptor located in the autonomic nervous system that responds to the neurotransmitter acetylcholine.

Intestinal Motility

The movement of the intestines which facilitates the progression of its contents towards elimination.