The Statement Concerning the AASB 101 Criteria for Classifying Assets

question 29

Multiple Choice

The statement concerning the AASB 101 criteria for classifying assets as current or non-current that is not correct is:

• A) The AASB 101 criteria is identical to the traditional current/non-current classification
• B) For entities with a long operating cycle, some assets could be classified as current even though realisation was not expected within 12 months
• C) One criteria for classification is expected realisation within twelve months after the reporting date
• D) Investments maturing within 12 months are classified as current assets

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Definitions:

Negotiators

Individuals or parties involved in a discussion aimed at reaching an agreement or resolving a problem.

Personal Preferences

Personal preferences are individual tastes, inclinations, or choices, reflecting subjective values or desires in various aspects of life.

Integrative Negotiations

A cooperative approach in negotiations aiming to achieve mutually beneficial outcomes for all parties involved.

Firm Flexibility

The ability of a company to adapt quickly to changes in the market environment, including shifts in consumer demand, technological advancements, and competitive dynamics.