Which Approach Is Contained in IAS 1/AASB 101, Requiring All

question 24

Multiple Choice

Which approach is contained in IAS 1/AASB 101, requiring all income and expenses to be included in the determination of profit?

• A) the operating approach.
• B) the comprehensive profit approach.
• C) the reporting method approach.
• D) the all-inclusive profit approach.

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Definitions:

Income Taxes

Government levies on the earnings of individuals and companies within their territory.

After-Tax Discount Rate

The discount rate used in investment or project valuation that accounts for the effects of taxes on the project's cash flows.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life.

Initial Investments

The initial amount of money invested in a project, asset, or company to start operations or purchase assets.