Exam 1: Nature and Regulation of Companies

Which of the following statements is correct in relation to disclosure documents?

Under the ASIC Act 2001 one of the key functions of the Australian Accounting Standards Board (AASB)is to participate in the development of a single set of accounting standards for worldwide use.

When determining whether a proprietary company is classified as small or large,the consolidated gross assets test is determined based on the average of the opening and closing gross assets.

Disclosing entities must prepare annual and half-yearly financial statements,have them audited and lodge them with the ASIC.

In announcing that the AASB would adopt IASB accounting standards by 1 January 2005,the Financial Reporting Council (FRC)argued that a single set of high-quality accounting standards that are accepted in international capital markets would greatly help cross-border comparisons by investors.

Australian accounting standards are now identical to their equivalent International Financial Reporting Standards (IFRSs).

In July 2002,the Financial Reporting Council (FRC)issued a bulletin requiring that the AASB would adopt IASB standards from 1 January 2005 for:

Accounting standards approved by the Accounting Standards Review Board (ASRB)had:

The definition of a reporting entity in SAC 1 requires:

The seven main user groups of general purpose financial reports (GPFRs)contained in the Conceptual Framework include the management of the reporting entity.