The 'Global Harmonisation' Approach to Accounting Standards,as Set Out in AASB

question 6

Multiple Choice

The 'global harmonisation' approach to accounting standards,as set out in AASB Policy Statement No 1,means which of the following?

• A) working to reduce the differences between Australian and other countries accounting standards
• B) adopting accounting standards developed and adopted in other countries
• C) developing local accounting standards based on an examination of accounting standards and practices adopted in other countries
• D) none of the above

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Definitions:

Novation

Novation is the act of replacing one obligation with another by mutual agreement, effectively transferring the rights and duties to a new party.

Valid Obligation

A duty or commitment that is legally binding and enforceable by law.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets, such as property, industrial buildings, or equipment, to improve its business capacity or efficiency.

Partnership Creditors

Individuals or entities to whom a partnership owes money or has some form of legal financial obligation.