Insubstance Debt Defeasance Is No Longer Allowed Under AASB 132

question 22

Multiple Choice

Insubstance debt defeasance is no longer allowed under AASB 132:

• A) Because this form of defeasance is no longer used in Australia.
• B) Because the new standard takes a form over substance approach.
• C) Because it is inappropriate to extinguish a debt where the discharge of the obligation has been accepted by the creditor.
• D) Because this type of action requires the offsetting of financial assets and liabilities in circumstances not allowed under AASB 1014.
• E) None of the given answers.

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Flexible Assignment

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Employment Legislation

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