According to S

question 23

Multiple Choice

According to s. 224 of the ASIC Act 2001, accounting standards should result in financial information which has which of the following characteristics?
I. Allows users to make and evaluate decisions about allocating scarce resources.
II. Assists directors in discharging their obligations in relation to financial reporting.
III. Is relevant to assessing performance, financial position, financing and investment.
IV. Is readily understandable.
V. Facilitates comparability.
VI. Is relevant and reliable.

• A) I, IV and VI only.
• B) I, III, IV and VI only.
• C) I, II, IV, V and VI only.
• D) all of the above.

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Definitions:

Rational Decision Model

A decision-making process based on systematically evaluating alternatives, with the goal of selecting the most logical and optimal option.

Stakeholders Needs Analysis

A process of identifying and understanding the needs and expectations of those who have an interest in or are affected by a project or business.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity, often serving as guidelines for what is considered right or wrong.

Decision-Making

The cognitive process of selecting a course of action from among multiple alternatives, typically aimed at solving a problem or achieving a goal.