24 Questions
What is the primary focus of Illustrative Example C?
Summary of significant material accounting policy information policies of the General Government Sector
What type of entities does the implementation guidance and illustrative examples accompanying AASB 1054 relate to?
Not-for-profit private sector entities
What is the purpose of the implementation guidance and illustrative examples accompanying AASB 1054?
To illustrate the application of the requirements in paragraph 9A and their relationship to the requirements in AASB 101
What type of information does paragraph 39(b) require?
Summary of significant material accounting policy information policies
What is the primary focus of AASB 1055?
Budgetary reporting
What is the relationship between the implementation guidance and illustrative examples accompanying AASB 1054 and AASB 101?
They illustrate the application of the requirements in paragraph 9A and their relationship to the requirements in AASB 101
What is the purpose of paragraph 9B?
To provide implementation guidance and illustrative examples for not-for-profit private sector entities
What is the primary focus of AASB 1054?
Financial statement presentation
What should be prominently disclosed in the notes according to paragraph 39?
Material summary of significant accounting policy information policies
What is the purpose of Illustrative Example C?
To illustrate the material summary of significant accounting policy information policies
What is the main focus of the amended paragraphs 39 and 40?
Disclosures of material accounting policy information policies
What is the heading above paragraph 39 amended to?
Material Accounting Policy Information Policies
What is the purpose of the notes containing material accounting policy information policies?
To disclose material accounting policy information policies
What is the relationship between Illustrative Examples A and B?
They do not purport to identify all possible differences between GAAP and GFS
What type of information is required to be disclosed about the measurement of financial instruments?
Material accounting policy information
What is the purpose of the amended introduction to the Illustrative Examples?
To introduce the amended paragraphs 39 and 40
Which of the following is a required disclosure for inventories?
Material accounting policy information about the measurement
What type of information is required to be disclosed about investments in associates?
Material accounting policy information
What is the scope of the amended paragraphs 39 and 40?
Only General Government Sector entities
Which of the following is a required disclosure for investments in joint ventures?
Material accounting policy information
What type of information is required to be disclosed about government grants for for-profit entities?
Material accounting policy information
Why is material accounting policy information required to be disclosed?
To ensure transparency and comparability
Which standard requires entities to disclose material accounting policy information?
IFRS for SMEs
What is the purpose of disclosing material accounting policy information?
To facilitate comparison among entities
Study Notes
Amendments to AASB Standards
- Amendments are made to AASB 1054, specifically paragraph 9B, implementation guidance, and illustrative examples.
- Amendments are also made to AASB 1049, including paragraphs 39, 40, and the introduction to the Illustrative Examples.
Disclosure Requirements
- Notes containing material summaries of significant accounting policy information policies must include:
- Disclosures required by other Australian Accounting Standards
- Additional disclosures required by paragraph 39
- Illustrative Example C provides an example of the information to be included in the summary of significant accounting policy information policies.
Material Accounting Policy Information
- Information about the measurement basis (or bases) for financial instruments used in preparing the financial statements is expected to be material accounting policy information.
- Material accounting policy information includes:
- Measurement of inventories, including the cost formula used
- Accounting policy for investments in associates
- Accounting policy for recognising interests in joint ventures
- Accounting policy adopted for government grants, including methods of presentation in the financial statements
Illustrative Examples
- Illustrative Examples A and B do not purport to identify all possible differences between GAAP and GFS, nor present all line items required by a different set of assumptions.
- Illustrative Example C provides an example of the summary of significant accounting policy information policies for a General Government Sector.
This quiz covers the amendments made to AASB 1054 and AASB 1049, including changes to paragraph 9B, implementation guidance, and illustrative examples. It also explores the disclosure requirements for notes containing material summaries of significant accounting policy information.
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