What is the mission of the AASB?
The mission of the AASB is to develop and maintain high-quality financial reporting standards for all sectors of the Australian economy and to contribute to the development of global financial reporting standards. 5.
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What is aasb124?
AASB 124. 6. STANDARD. 8. For these reasons, knowledge of an entity’s transactions, outstanding balances, including commitments, and relationships with related parties may affect assessments of its operations by users of financial statements, including assessments of the risks and opportunities facing the entity.
What is included in key management personnel compensation?
Key management personnel compensation disclosure 17 An entity shall disclose key management personnel compensation in total and for each of the following categories: (a) short-term employee benefits; (b) post-employment benefits; (c) other long-term benefits; (d) termination benefits; and (e) share-based payment.
What is the objective of AASB 102?
The Australian Accounting Standards Board makes Accounting Standard AASB 102 Inventories under section 334 of the Corporations Act 2001. 1 The objective of this Standard is to prescribe the accounting treatment for inventories.
What legislation governs the role of the AASB?
The AASB is constituted under Part 12 of the Australian Securities and Investments Commission Act 2001 (the ASIC Act). The functions of the AASB, as reflected in section 227 of that Act, include the development and maintenance of high quality accounting standards for all sectors of the Australian economy.
What is the full form of AASB?
The Auditing and Assurance Standards Board (AASB) establishes standards for assurance and related services engagements.
What is a KMP in Australia?
Definition of KMP Under AASB 124, KMP are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Are all directors key management personnel?
Chief Executive Office, Cheif Financial Officer, Company Secretary, Whole Time Director are the Key Managerial Personnel.
Who are considered key management personnel?
Guidance. AASB 124.9 defines Key Management Personnel (KMP) as those persons having the authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, i.e. those charged with decision-making responsibilities.
What is the valuation rule for inventory?
Inventory valuation is usually a conservative estimate in GAAP and uses a rule called least-of-cost-or-market, or LCM. The LCM rule simply states that when you calculate the value of inventory, you should price lower than either its purchase price or current market value.
Which act are the AASB accounting standards legally enforceable in Australia?
AASB and AUASB Accounting and auditing standards made under the Corporations Act are legislative instruments under the Legislative Instruments Act 2003. That is, they are legally enforceable.
What are the four accounting standards?
Applicability of Accounting standards
| Accounting Standard | Level I | Level III |
|---|---|---|
| AS 1 Disclosure of Accounting Principles | Yes | Yes |
| AS 2 Valuation of Inventories | Yes | Yes |
| AS 3 Cash Flow Statements | Yes | No |
| AS 4 Contingencies and Events Occurring After the Balance Sheet Date | Yes | Yes |
Are all directors KMP?
Appointment of Key Managerial Personnel It is mandatory for any listed company and any company with a paid up capital of more than or equal to 10 lakhs to appoint a whole time KMP. Further, a company with at least 5 lakhs paid-up capital is required to employ a full-time company secretary(who is also a KMP).
What are the indicators of impairment?
Indications of impairment [IAS 36.12]
- market value declines.
- negative changes in technology, markets, economy, or laws.
- increases in market interest rates.
- net assets of the company higher than market capitalisation.
