Liabilities and Cashflows

Which statement is the odd one out? Revenue is recognised over time if one of the following criteria is met?

• The entity's performance creates or enhances an asset that the customer controls as the asset is created

• The entity's performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date

• The customer makes a payment to the entity at any point before, during or after the agreed length of contract

• The customer simultaneously receives and consumes all the benefits provided by the entity as the entity performs

Derives from an entity's actions such as an established pattern of past practice, or where the entity has created a valid expectation. This is the definition of

• A Provision

• A Contingent Liability

• A Legal Obligation

• A Constructive Obligation

Is a Contingent Asset ever recognised in the Financial Statements?

• Yes

• No

Which of the following is not an adjusting event under IAS 10?

• Trade receivables where a customer has become insolvent

• Discovery of fraud or errors that show the Financial Statements are incorrect

• Major purchase of assets

• Inventories where NRV falls below cost price

Should a decrease in inventories be added or deducted from the profit before tax when calculating the net cash from operating activities?

• Added

• Deducted

Should an increase in trade receivables be added or deducted from the profit before tax when calculating net cash from operating activities?

• Added

• Deducted