Which of the Following Statements in Relation to IAS 19/AASB

question 8

Multiple Choice

Which of the following statements in relation to IAS 19/AASB 119 Employee Benefits is not true?

• A) Employee benefits include wages and salaries, non-monetary fringe benefits, annual leave and superannuation.
• B) The controls that need to be provided when operating a payroll system are outlined.
• C) The principles for recognition of employee benefits as expenses or liabilities are consistent with those in the Conceptual Framework.
• D) Wages and salaries, annual leave and sick leave are to be reported at their nominal amounts.

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Definitions:

Rational Consumers

Individuals who make decisions to maximize their utility or satisfaction based on the information available and their own preferences.

Marginal Utility

The change in total satisfaction or utility that a consumer experiences as a result of consuming one additional unit of a good or service.

Framing Effects

The influence on an individual's decision-making caused by the way information is presented, rather than just the information itself.

Status Quo

The existing state of affairs; in prospect theory, the current situation from which gains and losses are calculated.