Under AASB 101, in the Statement of Financial Position, Companies

question 48

Multiple Choice

Under AASB 101, in the statement of financial position, companies are normally required to distinguish between:

• A)cash on hand and cash at bank.
• B)property and plant.
• C)current and non-current liabilities.
• D)current profit and retained profits.

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Definitions:

Pension Expense

The total cost incurred by an employer to provide pension benefits to its employees, recognized during the period the employees provide services.

Amortization

The gradual reduction of a debt over a period through regular payments covering interest and principal components.

Deferred Loss

A loss that has been incurred but is not immediately recorded in the financial statements.

Plan Assets

Assets that are held by a retirement or pension plan for the exclusive purpose of paying benefits to participants as they become due.