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:

Assimilation

The process by which individuals or groups integrate and adapt to the culture or norms of another group or society.

Accommodation

In cognitive psychology, the process by which individuals adjust their schemas to incorporate new information.

Equilibrium

A state of balance or stability within a system, where all forces acting on the system are canceled out by each other.

Sex-limited

Traits or characteristics that are expressed in only one sex, even though the genes for these traits might exist in both sexes.