Which Statement Concerning AASB 1053 Is Untrue

question 62

Multiple Choice

Which statement concerning AASB 1053 is untrue?

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

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Definitions:

AAR

Average Annual Return, representing the average amount of money earned by an investment each year over a given time period.

Discounted Payback

A capital budgeting method that calculates the time needed to recoup the initial investment in present value terms, considering the time value of money.

Crossover Point

The point at which two or more different financial indicators meet, often used in budgeting to identify when an investment will start to generate profit.

Mutually Exclusive Projects

Projects where the acceptance of one will automatically exclude the option of accepting the other.