1 In the IASB (2008) proposed statement of financial position, which groupings would be included Multiple Choice Revenues and Expenses Operating, Investing and Financing Current assets and Non current assets Assets, Liabilities and Equity 2 AASB 101 indicates that when presenting a statement of financial position, an entity should Multiple Choice present all assets and liabilities as two groups and disclose their specific classifications in notes as per paragraphs 57 67 present items broadly in order of liquidity if that information is reliable and more relevant than following paragraphs 66 76 only present items on the basis of liquidity if that information is reliable and more relevant If this is the case, assets should be discretely grouped into current and non current classifications always classify items as current and non current 3 Financial institutions dealing with investments and other financial instruments prefer which method of measurement for that class of assets Multiple Choice Fair value Historical cost Net realisable value Present value 4 Heritage assets have characteristics that create doubt about whether or not they satisfy the definition of an asset These characteristics include Multiple Choice they never generate cash inflows they are not expected to generate net economic benefits and they are unlikely ever to be sold they are not expected to generate net economic benefits they are unlikely ever to be sold 5 In Australia there is a specific requirement for reporting entities in the extractive industries to disclose Multiple Choice provisions for the reconstruction of environments damaged through mining processes The disclosure should include costs measured using present value and take into account the local Environmental Protection Agency's requirements regarding the state to which the area should be returned on the completion of extraction of the minerals information about the potential environmental impacts on protected species (as specified by state Environmental Protection Authorities) of any proposed or current extraction activities The information is to be provided by category of protected species and verified by independent auditors information about the environmental and social impacts of their operations, which are often in small local communities isolated from other sources of employment and revenue generation The information to be provided includes average salary levels, training and education opportunities provided, health and safety procedures as well as disclosures about the cost of restoring the environment back to its original condition on completion of mining information about the amount of restoration obligations recognised as a liability in their financial reports and the accounting methods adopted in determining the liability for restoration 6 An externality can be defined as Multiple Choice an impact that a reporting organisation has on parties that are external to the organisation parties that typically have no direct relationship with the organisation an impact on the organisation that is not of an economic nature and which is caused by environmental protection regulations an impact that a reporting organisation has on parties that have a direct financial relationship with the organisation an impact of an external group or entity on the reporting organisation 7 Which of the following statements is incorrect with respect to the Global Reporting Initiatives (GRI) Guidelines Multiple Choice The GRI Guidelines are used as basis for mandatory reporting of social and environmental aspects in some jurisdictions The GRI's ranking system also takes into account whether the reports have been subject to external assurance The GRI has established a self assessment system wherein organisations can rank themselves from 'three' stars (highest) to 'one' star (lowest) on the basis of the extent to which the guidelines have been adopted The GRI Guidelines have brought about improvements in environmental reporting but fall short on companies being selective about which indicators to report

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1.In the IASB (2008) proposed statement of financial position, which groupings would be included? Multiple Choice Revenues and Expenses. Operating, Investing and Financing. Current assets

1.In the IASB (2008) proposed statement of financial position, which groupings would be included?

Multiple Choice

Revenues and Expenses.
Operating, Investing and Financing.
Current assets and Non-current assets.
Assets, Liabilities and Equity.

2. AASB 101 indicates that when presenting a statement of financial position, an entity should:

Multiple Choice

present all assets and liabilities as two groups and disclose their specific classifications in notes as per paragraphs 57-67.
present items broadly in order of liquidity if that information is reliable and more relevant than following paragraphs 66-76.
only present items on the basis of liquidity if that information is reliable and more relevant. If this is the case, assets should be discretely grouped into current and non-current classifications.
always classify items as current and non-current.

3.Financial institutions dealing with investments and other financial instruments prefer which method of measurement for that class of assets?

Multiple Choice

Fair value.
Historical cost.
Net realisable value.
Present value.

4. Heritage assets have characteristics that create doubt about whether or not they satisfy the definition of an asset. These characteristics include:

Multiple Choice

they never generate cash inflows.
they are not expected to generate net economic benefits and they are unlikely ever to be sold.
they are not expected to generate net economic benefits.
they are unlikely ever to be sold.

5. In Australia there is a specific requirement for reporting entities in the extractive industries to disclose:

Multiple Choice

provisions for the reconstruction of environments damaged through mining processes. The disclosure should include costs measured using present value and take into account the local Environmental Protection Agency's requirements regarding the state to which the area should be returned on the completion of extraction of the minerals.
information about the potential environmental impacts on protected species (as specified by state Environmental Protection Authorities) of any proposed or current extraction activities. The information is to be provided by category of protected species and verified by independent auditors.
information about the environmental and social impacts of their operations, which are often in small local communities isolated from other sources of employment and revenue generation. The information to be provided includes average salary levels, training and education opportunities provided, health and safety procedures as well as disclosures about the cost of restoring the environment back to its original condition on completion of mining.
information about the amount of restoration obligations recognised as a liability in their financial reports and the accounting methods adopted in determining the liability for restoration.

6. An externality can be defined as:

Multiple Choice

an impact that a reporting organisation has on parties that are external to the organisation; parties that typically have no direct relationship with the organisation.
an impact on the organisation that is not of an economic nature and which is caused by environmental protection regulations.
an impact that a reporting organisation has on parties that have a direct financial relationship with the organisation.
an impact of an external group or entity on the reporting organisation.

7. Which of the following statements isincorrectwith respect to the Global Reporting Initiatives (GRI) Guidelines?

Multiple Choice

The GRI Guidelines are used as basis for mandatory reporting of social and environmental aspects in some jurisdictions.
The GRI's ranking system also takes into account whether the reports have been subject to external assurance.
The GRI has established a self-assessment system wherein organisations can rank themselves from 'three' stars (highest) to 'one' star (lowest) on the basis of the extent to which the guidelines have been adopted.
The GRI Guidelines have brought about improvements in environmental reporting but fall short on companies being selective about which indicators to report.