COM PREHENSION QUESTIONS HmthM-l 'ID 11 12 13 1|What are the key sources of regulation in Australia for a listed company? Describe the standard-setting process of the AASB. Distinguish between the roles of re FRC and tire AASB. How does the [ASE inuence nancial reporting in Australia? Explain the potential benets and problems that can result from the adoption of IFRSs in Australia. 1|What is re difference between Australian accounting standards and IFRSs? Specify the objectives of general purpose nancial reporting. the name of users and the information to be provided to users to achieve the objectives as provided in the conceptual framework. Dne oftlte functions ofthe FREistoensure thatthe Australian accounting standardsare 'inthebest interests of both the private and public sectors in the Australian economy'. How might the PRC assess this?I Outline the fundamental qualitative characteristics of nancial reporting information to be included in general purpose nancial statements. Discuss the importance of the going concern assumpu'ons to the pracu'ce of accountingl Discuss the essential characteristics ofan asset as described in the conceptual framework. Discuss the essential characteristics ofa liability asdescribed in the conceptual framework. A government gives a parcel ofland to a company at no charge. The company builds a factory on the land and employs people at the factory to pcroduce jam that is sold in local and interstate markets. Considering the denition ofincome in the conceptual framework, do you think the receipt of the land is income to the company\";ll 1|Illl'ould your answer depend on how the land is measured? \f1.4 Flnlnnill statement: * L05, 9 An entity purchases a rental property fer amt-mane as an invesunent. The building is full}r rented and is inageod area.Attheenef1eeunent}rear, theentity hiresanappraiaerwhe reports that the fair value at the building is 315%\" plus ur minus 10%. Depreciatjng the building ever 5:] ream would reduce the ranging meant to $300000. 1.3 ning concern * LOB, 9 What measmement principles might be most appmpriate fer a company that has ceased ta be a going emcem {c.g. creditors have appointed a receiver who is seeking buyets for the company's assets}? 1.12 Denition Incl recoglinn criteri- * LOT, 3 Explain how T Ltd sheuld account for the following itemsI justifying your answers by reference to the denitions and recognition criteria in the conceptual framework. Also state, where appropriate, which ledger accounts should be debited and credited. Rewind 1. Photographs of the company's foundersI which are of great sentimental and historical value. 2. [a] T Ltd has been sued for negligence likely it will lose the case. (b) T Ltd has been sued for negligence likely it will win the case. 3. Obsolete plant now retired from use; 4. T Ltd receives a denation of $113 Dtlt]
