Which entities covered by the Corporations Act must apply the provisions in all AASB accounting standards when preparing the annual financial reports (assuming materiality)?
A)only reporting entities
B)only disclosing entities
C)only public companies that are reporting entities
D)only disclosing entities and reporting entities

Question

Quizplus · Accepted Answer

Both reporting entities and disclosing entities are required to apply the provisions in all AASB accounting standards when preparing their annual financial reports, assuming materiality. Public companies are often reporting entities, but not all reporting entities are public companies. Disclosing entities are those that have issued securities to the public or have specific obligations to disclose information to the market.

Which Entities Covered by the Corporations Act Must Apply the Provisions