Why would an accounting estimate change and how is the change accounted for? The Corporations Act requires which of the following statements to be included in a Directors' Declaration? O a. Whether in their opinion the financial statements comply with accounting standards and the Corporations Act O b. Whether in their opinion the financial statements give a true and fair view of the financial position and financial performance of the entity. Oc. od. Whether or not in their opinion, when the declaration was made, there were reasonable grounds to believe that the company would be able to pay its debts as they become due. All the options listed here are correct Accounting standard AASB 1053 Application of Tiers of Australian Accounting Standards defines a rely on the entity's general purpose financial statements for information that will be useful to them for making and evaluating decisions about the allocation of resources It can be a single entity or a as an entity in respect of which it is reasonable to expect the existence of users who group comprising a parent and all of its subsidiaries O a. non reporting entity O b. reasonable entity c. reporting entity Od. resource entity In business combination, an asset can be considered as identifiable: O a if it is either separable or arises from contractual or other legal rights if it is either acquired or is internally generated if it is carried at cost Od if it has an active market What is the difference in the treatment of internally generated goodwill from the purchased goodwill under AASB 138? Purchased goodwill is not amortised, whereas, internally generated goodwill can be amortised over a period of 10 years. O b. Purchased goodwill can be amortised over a period of 10 years, whereas, internally generated goodwill is recognised as an asset which cannot be amortised. OC. Purchased goodwill may be recorded as an asset, whereas internally generated goodwill may not. OO d. Purchased goodwill is to be expensed in the period it is bought, whereas internally generated goodwill is to be deferred and amortised over a period of no less than 20 years. In what situation does an excess on acquisition arise and how does AASB 3 require it to be treated? Time left 1:10:49 a. An excess arises when the fair value of the purchase consideration is greater than the nominal value of the assets purchased AASB 3 requires an excess to be eliminated by recognising it as a gain in the period in which the entity was purchased. Ob. An excess arises when the fair value of the purchase consideration is greater than the nominal value of the assets purchased. AASB 3 requires the fair values of the monetary assets acquired to be proportionately decreased until the excess is eliminated. If an excess balance remains, it must be recognised as an expense in the statement of comprehensive income. An excess arises when the cost of acquisition exceeds the fair value of the identifiable net assets purchased. AASB 3 requires the equity of the purchased entity to be proportionately decreased until the excess is eliminated. OC. An excess arises when the fair value of the identifiable net assets acquired by the entity exceeds the fair value of the consideration paid. AASB 3 requires a reassessment of the identification and measurement of the identifiable net assets, and a reassessment of the measurement of the fair value of the consideration paid. If an excess remains after the reassessment it must be recognised as income in profit or loss