The Order of Preference Set Out in AASB 108 for Reliance

question 1

Multiple Choice

The order of preference set out in AASB 108 for reliance on authoritative pronouncements as a guide to selecting an accounting policy when there is no specific Australian standard is:

• A) Related Australian Standards, International Accounting Standards, the Framework, accounting standards from other jurisdictions using a similar conceptual framework and accepted industry practices
• B) Related Australian Accounting Standards, the definitions, recognition criteria in the Framework, accounting standards from other jurisdictions using a similar conceptual framework and accepted industry practices
• C) Related Australian Standards and the Framework
• D) None of the above

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Definitions:

Perfectly Competitive

A market structure characterized by many sellers offering identical products, leading to price determination through supply and demand forces without individual control.

Externalities

Economic side effects or consequences that affect an uninvolved third party; can be either positive or negative.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, intellectual property, or other possessions.

Negatively Affects

Causes a decrease in effectiveness, quality, or function.