The Accounting Standard That Applies to Financial Assets That Consist

question 1

Multiple Choice

The accounting standard that applies to financial assets that consist of 'small holdings' of shares held as non-current assets is:

• A) AASB 116 'Property, Plant and Equipment'
• B) AASB 136 'Impairment of Assets'
• C) AASB 139 'Financial Instruments: Recognition and Measurement'
• D) All of the standards apply

---

Definitions:

Total Assets

The sum of all currently owned resources that have value which can be converted into cash and are used in operating the company.

Liabilities

Financial obligations or debts a company owes to others, expected to be settled over time through the transfer of assets, provision of services, or other economic benefits.

Statement of Stockholders' Equity

Financial documentation that shows changes in the value of a company's equity over a reporting period.

Retained Earnings

Retained earnings refer to the portion of a company's profits that are kept or retained within the company for reinvestment or to pay debt, rather than being paid out as dividends.