Under AASB 132 Expenditure Incurred in Making a Share Buyback

question 20

Multiple Choice

Under AASB 132 expenditure incurred in making a share buyback is treated as:

• A)a revenue included in determining period profit of loss
• B)an expense included in determining period profit of loss
• C)is recognised as a deduction from equity
• D)is deducted from the aggregate of paid-up share capital

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Definitions:

Revenue Generated

The total amount of income produced through the primary activities of a business before any expenses are deducted.

Profit or Loss Test

A criterion used to evaluate the performance of an investment or business segment by determining if it is generating profit or incurring loss.

Reportable Segment

An operating segment of a business that requires separate disclosure in the company's financial reporting due to its significant size, profitability, or importance.

Operating Segments

Components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources.