The Conditions That Were Required by the Former AASB 1014

question 25

Multiple Choice

The conditions that were required by the former AASB 1014 to be satisfied in order to achieve an insubstance debt defeasance using a trust include:

• A) Irrevocably transfer risk-free assets to a trust, the trustees of which are independent, and remain independent, of the entity, and which is solely used for administering those assets so as to meet the servicing requirements (both interest and principal) of the debt.
• B) The assets transferred to the trust must be of an amount and type suited to the amount and timing of both the principal and interest servicing requirements.
• C) Irrevocably transfer risk-free assets to a trust, the trustees of which are controlled by the entity, and which is mainly used for administering those assets so as to meet the servicing requirements (both interest and principal) of the debt.
• D) Irrevocably transfer risk-free assets to a trust, the trustees of which are independent, and remain independent, of the entity, and which is solely used for administering those assets so as to meet the servicing requirements (both interest and principal) of the debt and the assets transferred to the trust must be of an amount and type suited to the amount and timing of both the principal and interest servicing requirements.
• E) The assets transferred to the trust must be of an amount and type suited to the amount and timing of both the principal and interest servicing requirements and irrevocably transfer risk-free assets to a trust, the trustees of which are controlled by the entity, and which is mainly used for administering those assets so as to meet the servicing requirements (both interest and principal) of the debt.

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Definitions:

Leafy Vegetables

Vegetables that consist mostly of leaves, such as spinach, kale, and lettuce, known for their nutritional value, including vitamins, minerals, and fiber.

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A disease caused by lack of fresh fruits, vegetables, and vitamin C in the diet.

Vitamin C

Vitamin C is an essential nutrient and antioxidant found in fruits and vegetables, crucial for the repair of tissue and the enzymatic production of certain neurotransmitters.

Phosphorus

A chemical element with symbol P, essential for living organisms, contributing to the formation of DNA, RNA, and ATP.