ACCA Q2

Tax accounting and financial accounting mainly differ with regard to….

• Cash

• Warranties

• Inventory

• Depreciation

Which of the following are NOT characteristics of a lease contract

• The right to use an asset is transferred to the lessee

• The contract expires if the asset breaks or becomes obsolete

• The lessee pays a consideration the the lessor, for the right of using the asset.

• The right of the lessee of using the asset doesn’t have a determined time duration

An impairment may be reversed if it’s original cause ceases to exist (only Goodwill impairment can’t be reversed)

• Right

• Wrong

The deferred tax Assets account includes the income taxes the entity still has to pay for the previous financial year

• Right

• Wrong

After introducing IFRS 16, the amount of assets in the company BS for most companies is…

• Increased

• Decreased

• Stayed the same

• IFRS 16 didn’t impact BS accounts, just expences

Most financial liabilities are measured at fair value, expect for derivatives, which are measured at amm

ortised costs

• True

• False

The subsequent measurement of financial assets depends on how the owner plans to use them

• True

• False

All other things being equal, applying IFRS 16 decreases the EBITDA

• True

• False

The application of IFRS 16 haas impacted the BS of companies working in the sector of …

• Aviation

• Retail

• Fintec

• Textile and Apparel

Which of the following is a characteristic of a defined contribution pension plan?

• The employer has to make fixed contribution to a third part

• The employer bears the actual risk

• If the contributions to the fund are not sufficient to pay all the employee’s entitlement, the employer is required to make further contributions

• If the pension fund goes bankrupt, the employer is required to fulfill the employee’s entitlements on his own