Paragraphs 70-73 of AASB 133 Prescribe Various Disclosures Relating to Earnings

question 16

Multiple Choice

Paragraphs 70-73 of AASB 133 prescribe various disclosures relating to earnings per share. The disclosures include:
I the amounts used as the numerators (earnings) in the ratios
II a reconciliation of the earnings amounts to the profit or loss attributable to the parent entity for the period including the individual effect of each class of instruments that affects earnings per share
III the number of ordinary shares outstanding at the end of the financial year
IV the weighted average number of ordinary shares used as the denominator in the ratios

• A) I, II and III
• B) I, III and IV
• C) II, III and IV
• D) I, II and IV

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Definitions:

Midpoint Method

A technique used in economics to calculate the percentage change between two points by dividing the change by the average of the initial and final values.

Normal Goods

Goods for which demand increases as the income of individuals increases, and vice versa.

Income Elasticity of Demand

An indicator of the responsiveness of the demand for a product to variations in consumer income.

Cross-Price Elasticity of Demand

A measure of how much the quantity demanded of one good responds to a change in the price of another good.