The overall criteria for financial reporting contained in the Corporations Act is:
A) beyond a reasonable doubt.
B) materiality.
C) probable.
D) true and fair.

Question

Quizplus · Accepted Answer

The best choice is D, true and fair, as it is the overall criteria for financial reporting contained in the Corporations Act. The financial reports must present the information in a true and fair view to assist users in making informed economic decisions. Materiality is an important concept in accounting, but it is not the overall criteria for financial reporting in the Corporations Act. Beyond a reasonable doubt and probable are legal terms that do not apply to financial reporting criteria.

The Overall Criteria for Financial Reporting Contained in the Corporations