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WorksheetsIND AS
Total questions: 23
Worksheet time: 12mins
Name
Class
Date
1.
An asset is said to be impaired if
a)
Its carrying amount exceeds its net discounted cash inflows
b)
Its carrying amount exceeds its recoverable amount
c)
Its recoverable amount exceeds its carrying amount
d)
Its carrying amount is less than its market value
2.
Which of the following is an internal indication of impairment?
a)
Decline in market value
b)
Change in technology, market, economic or legal environment with an adverse effect
c)
Low market capitalization
d)
Discontinuance or restructuring plan
3.
If the fair value less costs to sell for an asset cannot be determined, then recoverable amount is its
a)
Market value
b)
Value in use
c)
Replacement value
d)
Fair value
4.
When should a reversal of a goodwill impairment be recognised?
a)
Immediately
b)
At management’s discretion
c)
At the end of the accounting period
d)
Never
5.
Fair value is a
a)
Market Based Measurement
b)
Entity Based Measurement
c)
Customer Based Measurement
d)
Contract Based Measurement
6.
The objective of a fair value measurement is to estimate the price at which an................would take place
a)
Orderly Transaction
b)
Related Party Transaction
c)
Fair Value Transaction
d)
Market Value Transaction
7.
The objective of a fair value measurement is to sell the asset or to transfer the liability between
a)
Market Leader
b)
Two Parties
c)
Market Participants
d)
Market Maker
8.
The objective of a fair value measurement is to sell the asset or to transfer the liability at
a)
Entry Price
b)
Ordertly Transaction
c)
Transaction Price
d)
Exit Price
9.
When a price for an identical asset or liability is not observable, an entity measures fair value using another valuation technique that maximises the use of relevant…........and minimises the use of….........
a)
Observable Inputs, Unobservable Inputs
b)
Unobservable Inputs, Observable Inputs,
c)
Unobservable Inputs
d)
Observable Inputs
10.
Ind AS 113 shall be applied to an entity's….......measured at fair value
a)
Own equity instruments
b)
Own debt instruments
c)
Own Prices
d)
Own Transactions
11.
The highest and best use of a non-financial asset takes into account the use of the asset that is
a)
Physically possible, legally permissible and financially feasible
b)
Physically feasible, legally possible and financially permissible
c)
Physically permissible, legally feasible and financially possible
d)
AOTA
12.
Highest and best use is determined from the perspective of…...., even if the entity intends a different use.
a)
Market Leader
b)
Two Parties
c)
Market Participants
d)
Market Maker
13.
The highest and best use of a non-financial asset might provide........to market participants through its use in combination with other assets as a group (as installed or otherwise configured for use) or in combination with other assets and liabilities (eg a business)
a)
Higher Value
b)
Minimum Value
c)
Maximum Value
d)
Lower Value
14.
Interest rate swap is a …………input would be an adjustment to a mid-market consensus price for the swap developed using data that are not directly observable and cannot otherwise be corroborated by observable market data
a)
Level 1
b)
Level 2
c)
Level 3
d)
Level 4
15.
Which technique of valuation is most appropriate in valuing cash generating unit?
a)
Single valuation technique
b)
Multiple valuation techniques
c)
DCF valuation technique
d)
AOTA
16.
Fair value is focused on the assumptions of the market place and is not entity specific. Which of the following assumptions does INDAS 113 take into account?
a)
It takes into account any assumptions about risk
b)
It takes into account any assumptions about reliability
c)
It takes into account any assumptions about the highest price that can be paid
d)
It takes into account any assumptions about going concern
17.
Which of the following does not result in a business combination for Pryor Ltd.?
a)
Pryor acquired an operating division of Nyle Ltd.
b)
Pryor made a basket purchase of 40% of Neilly Ltd.'s assets.
c)
Pryor acquired 65% of Kelly Co.'s voting shares.
d)
Pryor acquired all the assets of Burchak Ltd.
18.
In acquiring Au Ltd., Trinh Ltd. included a provision for contingent consideration. The value of this consideration will be determined by an event that will occur after the acquisition date. How should the recognition of the amount of the contingency be accounted for?
a)
As a gain/loss on the statement of comprehensive income
b)
As an adjustment to the acquisition value
c)
As an adjustment to retained earnings
d)
As an adjustment to goodwill
19.
Which of the following is not a classification for intangible assets under INDAS 103?
a)
Technology-based
b)
Internal development
c)
Customer-related
d)
Artistic-related
20.
Lang Ltd. acquired 100% of Linford Ltd. through a direct exchange. In the exchange, Lang issued $7,500,000 in shares to Linford. What journal entry must Linford record to reflect the exchange?
a)
DR Cash 7,500,000 CR Retained earnings 7,500,000
b)
DR Common shares 7,500,000 CR Retained earnings 7,500,000
c)
No journal entry is required.
d)
DR Cash 7,500,000 CR Common shares 7,500,000
21.
Kora Co., a public enterprise, is a subsidiary of Bentel Ltd., a private enterprise. Bentel has chosen to report Kora using the equity method. In doing so what information must Bentel disclose in its notes to the financial statements?
a)
Reconciliation of the equity method to the cost method
b)
Reconciliation of the equity method to consolidation
c)
Fair value of the investment in Kora
d)
Fair value of Kora's share capital
22.
Rossy Ltd. acquired 100% of Zia ltd. in 20X3. At the acquisition date, the following appeared under the Property, Plant, and Equipment sections of the respective separate-entity statements of financial position: Rossy Zia Equipment 1,000,000; 500,000 Accumulated depreciation (350,000) (100,000) At the acquisition date, Zia's equipment has a fair value of $425,000. What is the balance of the accumulated depreciation on Rossy's consolidated statement of financial position at the acquisition date?
a)
450000
b)
350000
c)
425000
d)
0
23.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. However, the measurement period shall not exceed
a)
Eighteen Months from the acquisition date
b)
One year from the acquisition date
c)
Six month from the end of financial year in which business combination initiated
d)
One from the end of financial year in which business combination initiated
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