Question 1

When assessing the materiality of a bad debtor, the accountant of Gold Limited concluded that in conformity with guidelines provided in AASB 1031 Materiality, it was not likely to be material as it:

a) was more than 12% but less than 20% of total equity

b) was more than 10% but did not exceed 50% of total bad debtors for the period;

c) was less than 5% of total bad debtors for the reporting period;

d) did not affect the cash flows for the period

Question 2

Under AASB 3 Business Combinations, an ‘excess' arises when the acquirer's interest in the net fair value of the acquiree's identifiable net assets and contingent liabilities is:

a) less than the carrying amount of the net assets acquired

b) less than the cost of the business combination

c) greater than the cost of the business combination

d) more than the book values of the identifiable assets acquired.

Attachment:- Acc.pdf