The June 2005 Exposure Draft Issued in Relation to AASB $\quad$

question 17

Multiple Choice

The June 2005 exposure draft issued in relation to AASB 137 proposed changes to:
I $\quad$ the name of the standard
II $\quad$ recognition and measurement criteria
III $\quad$ the definition of contingencies
IV $\quad$ the method of disclosure for provisions

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

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to normal goods.

Substitution Effect

The change in consumption patterns due to a change in the price of goods, leading consumers to substitute one good for another.

Income Effects

The shift in income for either an individual or an economy, and its subsequent effect on the amount of a good or service desired.

Substitution Effects

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.