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.

Understand the relationship between marginal cost, average total cost, and price in determining long-run equilibrium.

Identify the conditions under which purely competitive firms make economic profits or losses in the short run and long run.

Evaluate the impact of technological changes, entry and exit of firms, and resource price changes on the industry's supply curve and market equilibrium.

Distinguish between allocative efficiency and productive efficiency in the context of purely competitive markets.

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Definitions:

Cohesiveness of Workers

The degree to which employees in a group or organization are united and work together towards common goals and interests.

Structural Power

The power that entities or individuals have due to their positions within an organizational, social, or political structure.

Social Movement Unionism

A labor union approach that integrates broader social justice issues into its agenda, aiming to build alliances across different sectors and communities.

Bargaining Leverage

The power or advantage one party has to influence the terms of a negotiation in their favor.