Accounting Standard IAS 16/AASB 116

question 11

Multiple Choice

Accounting standard IAS 16/AASB 116:

• A) requires all assets to be revalued every five years.
• B) requires all assets to be revalued every three years.
• C) requires all assets to be revalued yearly.
• D) does not require an entity to revalue its assets.

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Definitions:

Closed Markets

refer to markets that are not open to all, often restricted by trade barriers or regulations, limiting the entry of external players.

Trading Position

A trading position is the stance an investor takes on the expected future performance of a financial instrument, reflected through either holding or trading the instrument.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit, such as stocks, bonds, real estate, or a business venture.