WorksheetsIFRS CHALLENGE 2022 - FINAL ROUND
Total questions: 15
Worksheet time: 8mins
What does IFRS stand for?
International Formal Reporting Structure
Institute of Finance Resource System
International Financial Reporting Standards
Independent From Rules and Securities
IFRS is derived from
GAAP
Big 4
SEC
International Accounting Standards Board (IASB)
What is the main difference between IFRS and GAAP?
GAAP is more rules based and IFRS is more general principles
IFRS is more rules based and GAAP is more general principles
GAAP only applies to publicly traded companies
What is the purpose of IFRS?
Tighter control on public companies
Works to eliminate Reporting Managers
Requires businesses to report their financial results and financial position using the same rules
A. Protect against another recession
When developing requirements for IFRS Standards, can the International Accounting Standards Board depart from the Conceptual Framework?
Yes, the Board is not required to use the Conceptual Framework when developing Standards.
Yes, but only from aspects of the Conceptual Framework and only if doing so is needed to meet the objective of financial reporting.
No
Under IAS 16 - Property, plant and equipment, which of the following should be included in the cost of an item of PPE?
Installation and assembly costs
Costs of training staff on the new asset
Apportioned general overhead costs
All of the above
Which ONE of the following is an exception for application of IFRS 15 – Revenue from contracts with customers?
Insurance contracts
Pharmaceutical contracts
Financial audit contracts
All of the above
An entity wishes to change from a cost model to fair value model under IAS 40 – Investment property...
When the board of directors approves a change
When a change will result in a more appropriate presentation
When the value of the assets will improve with a revised model
When the market for these properties is fluctuation
According to IAS 38 - Intangible assets, when does amortisation of an intangible asset commence?
When the asset is substantially complete
When the asset is available for use
When management determine
At the start of the accounting period
According to IFRS 15 - Revenue from contracts with customers, which criteria must be satisfied before revenue from the sale of goods should be recognised in P/L?
The customer has no rights to return
The outcome of the transaction is certain
A performance obligation has been met
The transaction price has been settled in full by the customer
According to IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, which of the following best describe the sources of a legal obligation?
A contract
An established pattern of past practice
A published policy
None of the above
According to IFRS 16 - Leases, which ONE of the following is not included in the definition of lease payments?
Exercise price of a purchase option that lessee is certain to exercise
Required payments (fixed and variable) over the lease term
Penalties for terminating the lease
Contingent rent
Intangible assets with a finite useful life should be measured at cost and tested annually for impairment.
True
False
Which of the following are described as fundamental qualitative characteristics?
Comparability
Relevance
Understandability
Timeliness
How should import duties be dealt with when valuing inventories according to IAS 2 - Inventories?
Ignored
Deducted from cost
Deducted in arriving at NRV
Added to cost
