Under AASB 1053: Application of Tiers of Australian Accounting Standards, an entity has public accountability if:

1. It files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market; or
2. It holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

Let's evaluate each of the given options:

1. A public government school: This would not typically have public accountability under AASB 1053. While it is publicly funded, it does not issue securities in a public market or hold assets in a fiduciary capacity for a broad group of outsiders.

2. A real estate agent: This could potentially have public accountability under AASB 1053 if it holds assets in a fiduciary capacity for a broad group of outsiders. This would depend on the specific circumstances of the real estate agent's operations.

3. A travel agent: This would not typically have public accountability under AASB 1053. While it may handle payments on behalf of customers, this is not the same as holding assets in a fiduciary capacity for a broad group of outsiders.

4. A very large proprietary company trading as Maryann Pty Ltd that employees five hundred (500) staff: This could potentially have public accountability under AASB 1053 if it issues securities in a public market. However, the number of employees alone does not determine public accountability.

So, the correct answer would depend on the specific circumstances of the real estate agent and the proprietary company. If neither of these entities meet the criteria for public accountability, then none of the options would have public accountability under AASB 1053.

Question

Under AASB 1053: Application of Tiers of Australian Accounting Standards, an entity has public accountability if:

1. It files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market; or
2. It holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

Let's evaluate each of the given options:

1. A public government school: This would not typically have public accountability under AASB 1053. While it is publicly funded, it does not issue securities in a public market or hold assets in a fiduciary capacity for a broad group of outsiders.

2. A real estate agent: This could potentially have public accountability under AASB 1053 if it holds assets in a fiduciary capacity for a broad group of outsiders. This would depend on the specific circumstances of the real estate agent's operations.

3. A travel agent: This would not typically have public accountability under AASB 1053. While it may handle payments on behalf of customers, this is not the same as holding assets in a fiduciary capacity for a broad group of outsiders.

4. A very large proprietary company trading as Maryann Pty Ltd that employees five hundred (500) staff: This could potentially have public accountability under AASB 1053 if it issues securities in a public market. However, the number of employees alone does not determine public accountability.

So, the correct answer would depend on the specific circumstances of the real estate agent and the proprietary company. If neither of these entities meet the criteria for public accountability, then none of the options would have public accountability under AASB 1053.

Knowee AI · Accepted Answer

Under AASB 1053: Application of Tiers of Australian Accounting Standards, an entity has public accountability if:

1. It files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market; or
2. It holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

Let's evaluate each of the given options:

1. A public government school: This would not typically have public accountability under AASB 1053. While it is publicly funded, it does not issue securities in a public market or hold assets in a fiduciary capacity for a broad group of outsiders.

2. A real estate agent: This could potentially have public accountability under AASB 1053 if it holds assets in a fiduciary capacity for a broad group of outsiders. This would depend on the specific circumstances of the real estate agent's operations.

3. A travel agent: This would not typically have public accountability under AASB 1053. While it may handle payments on behalf of customers, this is not the same as holding assets in a fiduciary capacity for a broad group of outsiders.

4. A very large proprietary company trading as Maryann Pty Ltd that employees five hundred (500) staff: This could potentially have public accountability under AASB 1053 if it issues securities in a public market. However, the number of employees alone does not determine public accountability.

So, the correct answer would depend on the specific circumstances of the real estate agent and the proprietary company. If neither of these entities meet the criteria for public accountability, then none of the options would have public accountability under AASB 1053.

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