Which Statement Concerning AASB 1053 Application of Tiers of Australian

question 6

Multiple Choice

Which statement concerning AASB 1053 Application of Tiers of Australian Accounting Standards is not true?

• A) Entities classed as Tier 1 will have their financial disclosure requirements increased.
• B) Entities classed as Tier 2 will have their financial disclosure requirements in relation to the accounting standards reduced.
• C) The reporting burden on the majority of disclosing Australian entities is reduced.
• D) In effect only publicly accountable entities will be required to report using full Australian accounting standards.

---

Definitions:

Invoice Terms

The conditions stipulated on an invoice, including payment due date, discount opportunities for early payment, and penalties for late payment.

n/30

Payment terms indicating the net amount is due in full within 30 days.

Estimated Returns Inventory

A current asset that is reported on the balance sheet after inventory.

Adjusting

The process of making entries to correct accounts or to account for accruals and deferrals in the accounting cycle.