In Relation to Selecting Appropriate Accounting Policies,the Hierarchy in AASB

question 18

Multiple Choice

In relation to selecting appropriate accounting policies,the hierarchy in AASB 108 Accounting Policies,Changes in Accounting Estimates and Errors requires that consideration is secondly given to:

• A)management using its judgement in developing and applying an accounting policy that results in information that is relevant and reliable.
• B)the requirements in Australian Accounting Standards dealing with similar and related issues.
• C)any Australian Accounting Standard that specifically applies to the transaction,other event or condition.
• D)the definitions,recognition criteria and measurement concepts for assets,liabilities,income and expenses in the Conceptual Framework.

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Definitions:

DHEA

Dehydroepiandrosterone, a hormone produced by the adrenal glands, involved in the production of sex hormones and associated with aging and health.

Process Information

The act of taking in, interpreting, and understanding information through cognitive processes.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Nocturnal Emission

A natural phenomenon also known as a wet dream, involving involuntary ejaculation during sleep, often associated with puberty in males.