Quiz - PAS 8 & PFRS 8

The method used to determine what information to report for operating segments is referred to as the:

• Operating approach

• Segment approach

• Management approach

• Enterprise approach

What should the entity do if the total external revenue reported by operating segments constitutes less than 75 per cent of the entity's revenue?

• Additional operating segments must be identified as reportable segments.

• Additional operating segments must be identified as reportable segments until at least 75 per cent of the entity's revenue is included in reportable segments.

• Additional operating segments must be identified as reportable segments even if they do not meet the quantitative thresholds.

• All of the above.

It is the disclosure of certain financial information about the products and services an entity produces and the geographical areas in which an entity operates.

• Segment Reporting

• Interim Reporting

• Amortization

• Disposal Group

In accordance with PFRS 8, entity-wide disclosures do not include

• Information about products and services

• Information about major customers

• Information about geographical areas

• Information about profit or loss, assets and liabilities

1. Which of the following errors will probably be disclosed by the preparation of a trial balance (i.e. would cause it to be out of balance)?

• 1. Failure to post an entire journal entry (i.e. nothing is posted)

• 1. Failure to record an entry in the journal (i.e. nothing is entered)

• 1. Failure to post part of a journal entry

• 1. Posting the debit of a journal entry as a credit, and the credit as a debit

1. A change in accounting policy should be applied:

• 1. Retrospective only

• 1. Retrospectively and prospectively

• 1. Prospectively only

• 1. Currently only

1. Change in accounting policies are:

• 1. Permitted if the change will result in a more reliable and more relevant presentation of the FS.

• Permitted if the entity encounters new transactions, events, or conditions that are substantively different from existing and previous transitions.

• 1. Required on material transactions, if the entity had previously accounted for similar, though immaterial, transactions under an unacceptable accounting method.

• 1. Required if an alternative accounting policy gives rise to a material change in assets, liabilities, or the current year net income.

1. Which of the following accounting treatments is proper for a change in reporting entity?

• 1. Restatement of financial statements of all prior periods presented

• 1. Restatement of current period financial statements

• 1. Note disclosure and supplementary schedule

• 1. Adjustment to retained earnings and note disclosure

1. On March 25, 2023, the entity discovered that, as a result of a computational error, depreciation expense for 2022 is overstated. The entity’s December 31, 2022 financial statements were authorized for issue on March 1, 2023. The entity must ___________.

• 1. Correct its December 31, 2022 financial statements before issuing them.

• 1. Reduce depreciation for the year ended December 31, 2023.

• 1. Restate the depreciation expense reported for the year ended December 31, 2022 in the comparative figures of its 2023 financial statements as retrospective restatement of a prior period error.

• 1. Do nothing.

1. A change in the estimated liability for warranty requires:

• 1. Correcting prior period retained earnings.

• 1. Presenting the effect of proforma data on income and earnings per share for all prior periods presented.

• Restating the FS of all prior periods presented.

• 1. Reporting current and future financial statements on the new basis.