As a general rule, the directors of a large proprietary company that is a reporting entity:
A)need not prepare any financial reports for that entity
B)must ensure a financial report is prepared for that entity that gives a true and fair view only
C)must ensure that a special purpose financial report is prepared for that entity that gives a true and fair view
D)must ensure that a financial report is prepared, in accordance with AASB standards, that gives a true and fair view for that entity.

Question

Quizplus · Accepted Answer

The directors of a large proprietary company that is a reporting entity must ensure that a financial report is prepared, in accordance with AASB standards, that gives a true and fair view for that entity. This is a legal requirement under the Corporations Act 2001. While a special purpose financial report may be prepared under certain circumstances, the default requirement is for a general purpose financial report prepared in accordance with AASB standards.

As a General Rule, the Directors of a Large Proprietary