Under AASB 8 the Objective Is to Provide Disclosures

question 9

Multiple Choice

Under AASB 8 the objective is to provide disclosures:

• A)about reportable operating segments
• B)about material operating segments
• C)that enable users of financial statements to evaluate the nature and financial effects of the business activities in which an entity engages and the economic environments in which it operates
• D)about operating segments that satisfy the quantitative guidelines in AASB 8.13.

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Definitions:

Variable Rate

An interest rate that can change over time, often based on an underlying benchmark interest rate or index that reflects the cost of borrowing in the credit markets.

Forward Contract

An agreement that isn't standardized between two parties to purchase or sell an asset at a future date determined today at a price agreed upon today.

Legally Binding

An agreement enforceable by law, with obligations that must be fulfilled by all parties involved.

Agreed-upon Price

The price that has been mutually accepted by the buyer and seller in a transaction.