Under AASB 119,the Recognition Criteria for Liabilities for Profit Sharing

question 6

Multiple Choice

Under AASB 119,the recognition criteria for liabilities for profit sharing and bonus plans is:

• A) It is probable the liability will be settled and the amount of the liability can be measured consistently
• B) It is reasonably certain the liability will be settled
• C) It is probable the liability will be settled
• D) The entity has a present legal or constructive obligation to settle the liability, and the amount of the liability is capable of being measured reliably

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Definitions:

Assimilation

Assimilation refers to the cognitive process of integrating new information into existing frameworks or schemas.

Authoritative Style

A parenting approach characterized by high responsiveness and high demands, aiming to foster independence while maintaining limits and control.

Egocentric

The inability to differentiate one's personal perspective from someone else's.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are very lenient and mostly allow their children to do what they want.