Which components of an entity structure are highlighted in AASB 107?
A) Liquidity
B) Solvency
C) Earnings management
D) A and B are both highlighted by the standard

Question

Quizplus · Accepted Answer

AASB 107, which deals with the Statement of Cash Flows, emphasizes liquidity and solvency by requiring entities to provide a cash flow statement that helps users evaluate these aspects. Earnings management is not a focus of this standard.

Which Components of an Entity Structure Are Highlighted in AASB