The listing contained the following I total comprehensive profit for the period

The listing contained the following i total

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the financial controller’s division of Financial Excellence Ltd. The listing contained the following: I total comprehensive profit for the period II total amounts comprehensive profit allocated to non-controlling interest and owners of the parent III for each component of equity, retrospective effect of changes in accounting policy IV for each component of equity, retrospective correction of errors V for each component of equity, a reconciliation between the amounts at the beginning and the end of the reporting period VI the reconciliation required by V includes changes due to period profit or loss VII the reconciliation required by V includes changes due to each items of other comprehensive profit VIII the reconciliation required by V includes changes with owners in their capacity as owners
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18____ 68. Only the following must be included in a changes in equity statement: a. all of IV to VIII b. I, II and III c. all of I to VIII and the amount of earnings per share d. all of I to VIII A listing of terms that have been used to describe amounts disclosed in financial statements was compiled by one of the independent directors of Financial Excellence Ltd: I profit or loss arising from ordinary activities II profit or loss III extraordinary items IV abnormal items V total comprehensive profit VI earnings per share____ 69. Under AASB 101, disclosure is required of: a. II and V b. I to III and V and VI c. I, II and V d. All of I to VI
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19ACCT5942Session 2­2011Mid­Session Practice Questions – Part A­Answers1. ANS: D Under AASB 137 contingent liabilities are not recognised, therefore B and C are not correct. Under AASB 137 the recognition of a provision (liability) does not depend on the existence of a legal obligation, a constructive obligation is sufficient, accordingly A is incorrect and D is correct since we must recognised as a liability as the benefits accrue to the workers, i.e. from the time they start working for a firm, since there is a constructive obligation ... the employees would expect the company to honour the obligation even though it has not yet vested.2. ANS: B Under AASB 137, a contingent asset can only be “recognised”, that is the contingency is ignored and the asset definition is assumed to be satisfied, if the future inflow of resources is virtually certain. That is, it is virtually certain that the contingency will be satisfied and that the future inflow will occur.3. ANS: B Under AASB 136 the recoverable amount is the greater of the value in use and the fair value less cost to sell (AASB 136.6), so only B can be correct.4. ANS: D Under AASB 136, an impairment of an asset recognised using the revaluation model is treated as a revaluation under AASB 116. Accordingly, if the recoverable amount of such an asset is less than its carrying amount (which we will assume to be fair value) then the carrying amount is reduced to recoverable amount. Therefore, D is the correct answer. A is incorrect because in some cases the carrying amount is determined using the recoverable amount to
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