AASB 1037 and AASB 141 Have Been Criticised on the Grounds

question 26

Multiple Choice

AASB 1037 and AASB 141 have been criticised on the grounds that:

• A) Their affect is to overstate the payout ratio relative to companies in the US.
• B) They emphasise reliability over relevance in asset measurement.
• C) They limit the accounting methods available to report on these types of assets.
• D) They will hinder the timely production of financial reports.
• E) All of the given answers.

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Definitions:

AOA Diagram

Activity on Arrow diagram, a network diagram used in project management to show the activities of a project on arrows and their dependencies.

CPM/PERT Analysis

Project management tools that help in planning, scheduling, and controlling complex projects, standing for Critical Path Method and Program Evaluation and Review Technique, respectively.

Activities-On-Nodes

A project management technique that represents tasks or activities as nodes in a network diagram, with edges indicating dependencies.

Financial Control

The management of a company's finances, ensuring that its resources are used efficiently and effectively.