IFRS CHALLENGE 2022 - FINAL ROUND

What does IFRS stand for?

• International Formal Reporting Structure

• Institute of Finance Resource System

• International Financial Reporting Standards

• Independent From Rules and Securities

IFRS is derived from

• GAAP

• Big 4

• SEC

• International Accounting Standards Board (IASB)

What is the main difference between IFRS and GAAP?

• GAAP is more rules based and IFRS is more general principles

• IFRS is more rules based and GAAP is more general principles

• GAAP only applies to publicly traded companies

What is the purpose of IFRS?

• Tighter control on public companies

• Works to eliminate Reporting Managers

• Requires businesses to report their financial results and financial position using the same rules

• A.      Protect against another recession

When developing requirements for IFRS Standards, can the International Accounting Standards Board depart from the Conceptual Framework?

• Yes, the Board is not required to use the Conceptual Framework when developing Standards.

• Yes, but only from aspects of the Conceptual Framework and only if doing so is needed to meet the objective of financial reporting.

• No

Under IAS 16 - Property, plant and equipment, which of the following should be included in the cost of an item of PPE?

• Installation and assembly costs

• Costs of training staff on the new asset

• Apportioned general overhead costs

• All of the above

Which ONE of the following is an exception for application of IFRS 15 – Revenue from contracts with customers?

• Insurance contracts

• Pharmaceutical contracts

• Financial audit contracts

• All of the above

An entity wishes to change from a cost model to fair value model under IAS 40 – Investment property...

• When the board of directors approves a change

• When a change will result in a more appropriate presentation

• When the value of the assets will improve with a revised model

• When the market for these properties is fluctuation

According to IAS 38 - Intangible assets, when does amortisation of an intangible asset commence?

• When the asset is substantially complete

• When the asset is available for use

• When management determine

• At the start of the accounting period

According to IFRS 15 - Revenue from contracts with customers, which criteria must be satisfied before revenue from the sale of goods should be recognised in P/L?

• The customer has no rights to return

• The outcome of the transaction is certain

• A performance obligation has been met

• The transaction price has been settled in full by the customer