According to AASB 137 Provisions, Contingent Liabilities and Contingent Assets

question 21

Multiple Choice

According to AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the appropriate treatment for a contingent asset in the financial statements of an entity is:

• A) disclosure of information in the notes, but do not recognise in the financial statements;
• B) recognition in the financial statements, and note disclosure;
• C) recognition in the financial statements, but no further disclosure in the notes;
• D) do not recognise in the financial statements, and do not disclose in the notes.

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Definitions:

Mean Weight

The average mass of objects or individuals, calculated by summing their weights and dividing by the number of objects or individuals.

Sample

A subset of individuals, items, or data taken from a larger population, used to make inferences about the whole population.

Confidence Interval

A span of numbers obtained from sampled data which probably encompasses the value of a not yet known parameter of the overall population.

Cholesterol

A waxy, fat-like substance found in the cells of the body, important for various biological functions but harmful at high levels.