Exam 4: Disclosure: Legal Requirements and Accounting Polices

The Corporations Act allows a company the right to prepare and send a concise report to members which consists of which of the following? I. A concise financial report drawn up in accordance with accounting standards. II) A directors' report for the year. III) An auditor's statement. IV) A statement that the report is a concise report and that the full financial report and auditor's report is available if requested.

Half yearly reports are required to be prepared by:

Material prior period errors must be corrected retrospectively, unless it is impracticable to do so.

Which of the following is not required to be disclosed in an entity's accounting policy note?

According to the Corporations Act, a company is required to include which of the following financial statements in its annual financial report? I Statement of profit or loss and other comprehensive income II Statement of financial income III Statement of financial position IV Statement of changes in equity V Statement of cash flows

The date at which financial statements are authorised for issue is the date on which the shareholders approve the financial statements at an annual meeting.

Comparative information in respect of all previous periods for all amounts reported in the financial statements must be provided.

A statement of financial position provides information about which of the following?

The statement of profit or loss and other comprehensive income provides information relating to:

If there are difficulties in distinguishing between a change in an accounting estimate and a change in an accounting policy, the change must be treated as a change in an accounting estimate.

Adjusting events are indicative of conditions that arose after the end of the reporting period.

In addition to the annual financial statements, companies have the right to choose to prepare and distribute concise financial reports to members.

If in the directors' opinion compliance with accounting standards will not provide a true and fair view, then a reporting entity must also provide:

Which of the following matters does an auditor of the financial report not have to form an opinion about?

A company's workforce went on strike for an indefinite period commencing on 5 August 2017. The strike was expected to cause severe financial conditions for the company. The financial statements for the year ended 30 June 2017 were expected to be finalised by 7 August 2017. In accordance with AASB 110/IAS 10 Events after the Reporting Period, the appropriate treatment regarding this event is:

When conducting an audit of financial statements, an auditor must give an opinion on the existence of fraud in the company's financial statements.

Which of the following is not a type of specific information required to be included in a directors' report?

According to AASB 108/IAS 8, omissions or misstatements are material if they:

Correcting the recognition, measurement and disclosure of amounts of financial statement elements as if a prior period error had never occurred is known as:

General purpose financial statements are prepared for users who depend on those reports for information to enable them to make decisions about the allocation of scarce resources.