The Statement in Relation to AASB 108 and the Correction

question 24

Multiple Choice

The statement in relation to AASB 108 and the correction of prior-period errors that is incorrect is:

• A) Prior-period errors are material omissions from and misstatements in an entity's statement of financial position and associated notes
• B) The correction must not be included in the profit or loss for the period in which the error is discovered
• C) Comparative figures for prior periods need not be restated
• D) A retrospective correction must be made which will normally affect retained earnings in the current statement of financial position

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Definitions:

Extrinsic Factors

External elements or influences that affect behavior, motivation, and outcomes, such as rewards or punishments that are not inherently related to the activity being performed.

Intrinsic Factors

Elements or motivations originating from within an individual, driving behavior for the sake of personal satisfaction or fulfillment.

Productivity

Productivity measures the efficiency of production in terms of the amount of output produced per unit of input, such as labor or materials.

Job Morale

The overall sentiment, outlook, and satisfaction of employees in their workplace environment.