AASB 101 indicates that when presenting a statement of financial position, an entity should: present all assets and liabilities as two groups and disclose their specific classifications in notes as per paragraphs 57-67. only present items on the basis of liquidity if that information is reliable and more relevant. If this is the case, assets should be discretely grouped into current and non-current classifications. present items broadly in order of liquidity if that information is reliable and more relevant than following paragraphs 66-76. always classify items as current and non-current.

The accounting standard AASB 101 prescribes the basis for the presentation of the general purpose…

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Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 57RSCQ

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AASB 101 indicates that when presenting a statement of financial position, an entity should:

		present all assets and liabilities as two groups and disclose their specific classifications in notes as per paragraphs 57-67.
		only present items on the basis of liquidity if that information is reliable and more relevant. If this is the case, assets should be discretely grouped into current and non-current classifications.
		present items broadly in order of liquidity if that information is reliable and more relevant than following paragraphs 66-76.
		always classify items as current and non-current.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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