Seatwork No. 2 (Finals) BSA 1E

Interim period is a financial reporting for a period of one year or less.

• True
• False

There is a presumption that anyone reading interim financial reports shall have access to the records of the entity.

• True
• False

An entity shall apply the same accounting policies in its interim financial statements as are applied in its annual financial statements.

• True
• False

Expenses associated directly with revenue are matched against revenue in those interim periods in which the related revenue is recognized.

• True
• False

Interim financial report shall be published once a year at any time during the year.

• True
• False

The impairment test compares the carrying amount of the asset with the lower of fair value less cost of disposal and value in use.

• True
• False

If recoverable amount is higher than carrying amount, no impairment loss is recognized

• True
• False

When impairment testing a cash generating unit, any corproate assets should be allocated on a reasonable and consistent basis.

• True
• False

The estimate of future cash flows in calculating value in use includes income tax payments.

• True
• False

The value of an asset is the price that would be paid to transfer a liability in an orderly transaction between market participants.

• True
• False