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:

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.

Depreciation Expense

The allocated amount of an asset's cost over its useful life, representing the wear and tear or obsolescence of the asset.

Double-Declining-Balance Method

An accelerated depreciation method in which an asset's book value is reduced by twice the rate of its straight-line depreciation.