AASB 141/IAS 41 Requires Disclosure of Which of the Following

question 3

Multiple Choice

AASB 141/IAS 41 requires disclosure of which of the following relating to government grants?

• A) The nature and extent of grants recognised, unfulfilled conditions attached to the grant and significant increases expected in the level of government grants.
• B) The nature and extent of grants recognised, unfulfilled conditions and other contingencies attached to the grant and details of grants applied for but not yet granted.
• C) Unfulfilled conditions and other contingencies attached to the grant and details of grants applied for but not yet granted.
• D) The nature and extent of grants recognised, unfulfilled conditions and other contingencies attached to the grant and significant decreases expected in the level of government grants.

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Definitions:

Expenses

The outflow of money to another person or company to pay for an item or service or for a category of costs.

Beginning Inventory

The valuation of inventory available for transaction at the start of an accounting timeframe.

Cost of Goods Sold

The financial outlays directly connected with creating the products a company sells, which entail materials and labor.

Purchases Returns and Allowances

Transactions involving the return of goods to suppliers or receiving discounts due to issues like damaged goods, leading to a reduction in purchase costs.