Which one of the following is not required to be disclosed in a lessee's financial statements in relation to its leases, to comply with the requirements of IFRS 16 Leases?

Inventory items should be valued at the lower of cost and net realisable value.

If the closing inventory is understated, then the current year's profit will be understated and next year's profit will be overstated.

A company sells goods with a warranty for the cost of repairs required in the first 2 months after purchase. Past experience suggests: 88% of the goods sold will have no defects, 7% will have minor defects, 5% will have major defects. If minor defects were detected in all products sold, the cost of repairs will be £24,000; if major defects were detected in all products sold, the cost would be £200,000. What amount of provision should be made?

How should prompt payment discount be dealt with when valuing inventories at the lower of cost and net realisable value (NRV), according to IAS2 Inventories ?

How should sales staff commission be dealt with when valuing inventories at the lower of cost and net realisable value (NRV), according to IAS2 Inventories ?

How should trade discounts be dealt with when valuing inventories at the lower of cost and net realisable value (NRV) according to IAS2 Inventories ?

Which of the following is added to the cost of inventories?

Under IAS 16, using the cost model, the asset in accounted for at Which of the following may be included in the cost of finished goods of a manufacturing company?

If the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, a lessee __________.

Which of the following does not define an "asset"?

The Caspian Company leased a warehouse with adjoining land for a period of 15 years. The land has an indefinite useful life whereas the warehouse has a useful life of 15 years. Title to the land is not expected to pass at the end of the lease. Under IFRS 16 Leases, in respect of which items should a right-of-use asset and a lease liability be recognised in the financial statements of Caspian?

In cases of conflict, the requirements of the Framework prevail over those of the relevant IFRS.

Development costs have been capitalised and will be amortised, but were deducted in determining taxable profit in the period in which they were incurred. This will give rise to a deferred tax asset."

According to IFRS 15 Revenue from contracts with customers, which of the following factors is not taken into account when establishing the transaction price of a contract?

Which one of the following is the best description of "faithful representation" in relation to information in financial statements?

An entity shall account for each business combination by applying the equity method.

The financial statements of the Farren Company for the year ended 31 December 20X8 included a provision for restructuring of £7 million. At 31 December 20X9, £2 million of the restructuring provision was no longer required. An additional provision of £2 million was needed for legal claims against the company. Under IAS 37, £2 million of the restructuring provision no longer required is to be reallocated to cover the legal claims

According to IAS 37 Provisions, contingent liabilities and contingent assets, a present obligation that arises from past events but cannot be reliably measured is a contingent liability."

Under IFRS 3, the acquirer shall measure the identifiable assets acquired and the liabilities assumed at their:

Which of the following is not an example of directly attributable costs according to IAS 16?

What is a benefit of having a Conceptual Framework?

Investor that holds only protective rights can have power over an investee in exceptional circumstances.

According to IFRS 10, which types of entities are defined as exceptions when consolidating particular subsidiaries?

According to IFRS 10, the basis for consolidation is ...

According to IAS 16 Property, plant and equipment, the cost includes cash equivalents paid to acquire an asset.

If the assets acquired are not a business, the reporting entity shall account for the transaction or other event as __________.

An asset is considered to be impaired when its carrying amount is greater than its

Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent measurement only if

Certain items of income and expense must be excluded when calculating an entity's profit or loss.

Are the following statements are true or false, according to IAS38 Intangible assets? (1) Intangible assets cannot be treated as having an indefinite useful life. (2) Intangible assets with a finite useful life should be measured at cost and tested annually for impairment.

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? Transfer to or from investment property should only be made when there is a change in their use

Are the following statements in respect of a finance lease true or false, according to IAS17 Leases? (1) Any initial direct costs incurred by a lessee are added to the amount of the liability recognised in the statement of financial position. (2) Any initial direct costs incurred by a lessee are added to the amount of the asset recognised in the statement of financial position.

The Conceptual Framework deals with the qualitative characteristics of financial statements. Is this statement true or false?

M Co sets up his demolition business from scratch on 1 January 20X0. Which items should be represented as capital expenditure?

According to the IASB Framework for the preparation and presentation of financial statements, which TWO of the following are examples of 'expenses'?

Are the following statements regarding the term 'profit' true or false? 1. Profit is any amount over and above that required to maintain the capital at the beginning of the period. 2. Profit is the residual amount that remains after expenses have been deducted from income.

Profit is the residual amount that remains after expenses have been deducted from income. Lợi nhuận là số tiền còn lại sau khi trừ đi các chi phí khỏi thu nhập

The Conceptual Framework deals with the objectives of financial statements. Is this statement

IAS 16 Property, Plant and Equipment requires an asset to be measured at cost on its original recognition in the financial statements. CARLING used its own staff, assisted by contractors when required, to construct a new warehouse for its own use.

Which statement regarding the term profit is true?

How do you deal with contingent consideration?

Revenue is recognised as control is passed. Which of the following BEST DESCRIBES control with respect to the revenue recognition?

The purpose of the Conceptual Framework is to assist in determining the treatment of items NOT covered by IFRS. Is this statement true or false?

Which of the following would NOT be classified as an associate? An entity where you...

Your company owns 40% of another company - is that company your subsidiary?

Your company owns 40% of another company - You have an arrangement with another investor who owns 20% that he will vote in line with you - is that company your subsidiary?

What type of goodwill is shown in the SFP as an asset?

Which would lead to more consistent accounting standards?

Is the screen of the device you're using right now - a cash CGU?

Which of the following is not included as part of the definition of control under IFRS 10 Consolidated Financial Statements?

Under this concept, the life of the business is divided into series of reporting periods.

Which of the following statements about users of accounting information is incorrect?

When does amortisation of an intangible asset commence?

According to IFRS 15 – Revenue from Contracts with Customers, which one of the following criteria must be satisfied before revenue from the sale of goods should be recognised in profit or loss?

A business buys a machine on 1 January 2019 for $10,000 and depreciates it at 10% per annum straight line. At the end of 2020 the machine's remaining useful life is reassessed at six years remaining and it is now believed that the machine has a residual value of $500. What is the depreciation charge for the third year of the machine's use?

Capitalisation is suspended if the delays in the development of an asset are: temporary delays which is necessary part of the process

Which of the following is not a “qualifying asset” under IAS 23 – Borrowing Costs?

Control means rights to the variability of returns and also..

Where do you put a gain or loss on a full disposal? Income statement

A contract performed but not paid would be

P acquires S for the following amounts: 1) Cash 400; 2) Future payment of 1,000 in 2 years time (discount rate 10%); 3) A possible future payment of 1,000 if S’s profits increase by 10% each year (FV of this is 400). How much is the investment in S (the consideration figure in the goodwill calculation)?

Is a footballer's contract an intangible asset?

An overprovision of tax in the previous year is shown in this years trial balance as

John & Co sold an item of used machinery at $5000. What will be the effect on financial statements?

Contract assets and receivables shall be accounted for in accordance with ______

The maximum maturity of a cash equivalent is:

Spring Co spent $5,000 on a patent for the new technique on 31 March 20X7. The company capitalized it as an intangible asset in the financial statements. Spring Co expected to use the patent for 5 years. According to IAS 38, which one of the following journal entries is correct to record the amount of the parent amortized for the year ended 31 March 20X8?

A company had a provision of $10,000 in its financial statements for the year ended 31 March 2021 in respect of a legal claim. In July 2022 the claim was settled at a cost of $13,000. What is the expense in respect of the legal claim included in the company’s statement of profit or loss for the year ended 31 March 2022?

On 1 April 2021, ABC company held non-current assets with cost of $400,000 and accumulated depreciation of $100,000 at this date. During the year ended 31 March 2022, ABC disposed non-current assets which had originally cost of $80,000 and carrying amount of $50,000. The company’s policy is to charge depreciation of 20% on the reducing balance basis, with no depreciation charged in the year of disposal. What is the depreciation charge to the statement of profit or loss for the year ended 31 March 2022?

A machine was purchased on 1 Jan 2020 for $9,600 and depreciated by 20% per annum using the reducing balance method. On 1 Jan 2023, it was sold for $4,800. What was the gain (or loss) on disposal of the machine that would be reported in the statement of profit or loss?

The Oakes Company has a loan due for repayment in six months' time, but Oakes has the option to refinance for repayment two years later. Oakes plans to refinance this loan. In which section of its statement of financial position should this loan be presented, according to IAS 1 Presentation of financial statements?

A company had CU 20 million of capitalised development expenditure at cost brought forward at 1 October 20X7 in respect of products currently in production and a new project began on the same date. The research stage of the new project lasted until 31 December 20X7 and incurred CU 1.4 million of costs. From that date the project incurred development costs of CU 800,000 per month. On 1 April 20X8 the directors became confident that the project would be successful and yield a profit well in excess of costs. The project was still in development at 30 September 20X8. Capitalised development expenditure is amortised at 20% per annum using the straight line method. What amount will be charged to profit or loss for the year ended 30 September 20X8 in respect of research and development costs?

Which is an indicator of impairment

Which would lead to more comparable financial statements between companies..?

What are the limitations to Faithful Representation?

Which of the following statements about research and development expenditure are correct according to IAS38 Intangible Assets?

If information is complex should it be included in the accounts?

Daily sales and purchases, employee costs and general overheads comprise:

The statement of financial position of Pinto at 31 March 2017 showed property, plant and equipment with a carrying amount of $1,860,000. At 31 March 2018 it had increased to $2,880,000. During the year to 31 March 2018 plant with a carrying amount of $240,000 was sold at a loss of $90,000, depreciation of $280,000 was charged and $100,000 was added to the revaluation surplus in respect of property, plant and equipment. What amount should appear under ‘investing activities’ in the statement of cash flows of Pinto for the year ended 31 March 2018 as cash paid to acquire property, plant and equipment?

Which two of the following are included in a complete set of financial statements, according to IAS 1 Presentation of financial statements?

Recording assets at their acquisition cost (entry value), rather than at their net selling price (exit value), is in line with the principle of

This qualitative characteristic requires at least two items.

The Plaice Company acquired a new filing machine, the list price of which was CU49,000. The supplier allowed a trade discount of CU1,700 off the list price. On delivery, the cost of installing the machine in its desired location was CU450. According to IAS 16 Property, plant and equipment, at what cost should the filing machine be measured in the financial statements of Plaice? CU49,000 CU47,750 CU49,450 CU47,300 Câu 45: Cloud obtained a 60% holding in the 100,000 CU1 shares of Mist on 1 January 20X8, when the retained earnings of Mist were CU850,000. Consideration comprised CU250,000 cash, CU400,000 payable on 1 January 20X9 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 20X8 was CU2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 20X8 was estimated to be CU400,000. What was the goodwill arising on acquisition?

A company issued 50,000 equity shares of $1 each at a premium of $0,5 per share. The cash received was correctly recorded but the full amount was credited to the share capital account. Which of the following journals corrects this error?

Is this an Investment Property? A chic, sleek, cutting edge technology building used for training accountants but no longer required as students just made the place a bit cluttered and smelly - so we have decided to sell it?

If an IFRS disagrees with the conceptual framework - then what should be followed?

With regard to the definition of revenue given by IFRS15, which of the following statements is true?

The acquisition, and disposal, of long-term assets are:

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property ? “Transfer from investment property to an IAS 16, property must be made at the FV of the investment property at the date of the transfer.”

The personal transactions of the business owner that do not involve the business are not recorded in the books of accounts of the business. This relates to the concept of:

According to IAS 02 - Inventories, which of the following should be included in the cost of an inventory?

When a constructing office is almost complete; the only remaining work is to install furniture, should the entity continue capitalising the borrowing costs?

A company bought an asset for 2,000 (10 year useful life) After 5 years it is impaired to 800. What is the double entry?

Do you provide for an obligated future cost?

We have decided to build a new cowshed for our students. We've bought the land but not got any planning permission. Is this an Investment Property?

Which is the 4th step in revenue recognition process?

Under this accounting principle, a business is not expected to end its operations in the foreseeable future:

Specific identification method, first in – first out (FIFO) and average cost (AVCO) are inventory valuation methods. Which of the following statements is correct?

In December, 2022, $595 return of goods to a supplier, had been incorrectly recorded in the sale returns journal as $295. How did this error affect the profit of the entity?

Which of the following is not a condition to commence capitalisation of borrowing costs?

Let’s say you need 100,000 to build a house in 8 months but you’re going to use general current borrowings to fund yourself rather than getting a specific loan. Your current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance. What borrowing costs should be capitalised?

P buys 70% S for 800. The FV of S’s Net assets were 1,000. The proportionate method of calculating NCI at acquisition is used. How much is goodwill?

A company has a legal obligation to remove an asset after it has finished with it in 8 years time. How is this dealt with in the accounts?

A delivery Van of ABC plc has damaged badly due to an accident in highway. The cost of repair will be $700. What type of expenditure is it?

A cash flow statement provides information that enables users to evaluate the changes in:

How shall an entity recognise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset?

Intangible asset with infinite useful life must be amortized. The above statement is TRUE OR FALSE?

The usefulness of information is assessed in terms of its …

On 1 August 20X7 Patronic purchased 18 million of the 24 million CU 1 equity shares of Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. The market price of a share in Patronic at 1 August 20X7 was CU5.75. Patronic will also pay in cash on 31 July 20X9 (two years after acquisition) CU2.42 per acquired share of Sardonic. Patronic's cost of capital is 10% per annum. What is the amount of the consideration attributable to Patronic for the acquisition of Sardonic?

If goodwill is calculated using FV method where is the impairment shown in your workings?

A 30% Associate - carrying value in the SFP = 1,000. The recoverable amount of the associate is 2,000. Has there been an impairment?

If the agreed date of payment by a customer is later than the date on which goods or services are transferred to that customer, part of the consideration should always be treated as finance income (not revenue). True or False?

A non-current asset was bought at 1 Jan 20X1 for $9,600 and depreciated by 20% per annum using the reducing balance method. On 1 Jan 20X4, it was sold for $4,800. What was the result of this disposal?

According to IAS 23 – Borrowing Costs, investment income generated from loans taken in order to finance a qualifying asset should be:

A parent leases an office building to a subsidiary. In which financial statements will the property appear as investment property?

Activities that result in changes in the size (and composition) of the equity capital, and borrowings are:

M Co sets up his demolition business from scratch on 1 January 20X0. Which items should be represented as capital expenditure?

When does an impairment occur?

An underprovision of tax in the previous year is shown in this years trial balance as

Capitalized development expenditure must be amortized over a period not exceeding 5 years. The above statement is TRUE OR FALSE?

Information becomes more useful if it can be compared with similar information about other entities and with similar information about the entity for another period or another date.

According to IAS 1 Presentation of financial statements, the notes within the financial statements contain information in addition to that presented in which two of the following?

You buy an asset at the start of the year with the following costs: 1) Purchase Price 1,000 2) Legal fees 500 3) Admin costs in negotiating the fee 100 4) Future dismantling cost of 200 in 3 years time Discount rate is 10% How much is the cost of the asset at the start of the year?

For an investment to qualify as a cash equivalent, it must be:

In a normal CGU impairment - what gets impaired first?

According to IAS 1 Presentation of financial statements, which two of the following must be included in an entity's statement of financial position?

Do you provide for next years losses under a contract?

Under IAS 23 Borrowings, which of the following cannot be a qualifying asset?

The carrying amount of property, plant and equipment was $410 million at 31 March 2011 and $ 680 million at 31 March 2012. During the year, property with a carrying amount of $ 210 million was revalued to $290 million. The depreciation charge for the year was $115 million. There were no disposals. What amount will appear on the statement of cash flows for the year ended 31 March 2012 in respect of purchases of property, plant and equipment?

Which of the following is NOT an intangible asset?

Which ONE of the following statements best describes the term 'financial position'?

Which ONE of the following terms best describes the relationship of the assets, liabilities and equity of an entity?

Which ONE of the following terms best describes assets recorded at the amount that represents the immediate purchase cost of an equivalent asset?

Which ONE of the following is true of the qualitative characteristic of 'understandability' in relation to information in financial statements?

Which ONE of the following terms best describes financial statements whose basis of accounting recognises transactions and other events when they occur?

Which ONE of the following is the best description of 'reliability' in relation to information in financial statements?

Are the following statements regarding 'recognition' true or false? (1) Recognition is the process of incorporating in the financial statements an item that meets the definition of an element. (2) Recognition is the process of determining the amounts at which elements of the financial statements are to be recognised

IFRSs approved by the IASB include paragraphs in bold type and plain text. In relation to the IFRS paragraphs in bold type, are the following statements true or false? (1) Bold-type paragraphs should be given greater authority than the paragraphs in plain text. (2) Bold-type paragraphs indicate the main principles of the standard.

Financial statements include a statement of financial position, a statement of comprehensive income and a statement of changes in equity. According to the Preface to international financial reporting standards, which TWO of the following are also included within the financial statements?

As regards the relationship between IFRSs and the Framework for the preparation and presentation of financial statements, are the following statements true or false? (1) The Framework is a reporting standard. (2) In cases of conflict, the requirements of the Framework prevail over those of the relevant IFRS.

Which TWO of the following are listed in the IASB Framework as 'underlying assumptions' regarding financial statements?

Which TWO of the following statements concerning the provisions of the IASB Framework are correct?

According to the IASB Framework, which TWO of the following characteristics are described as principal qualitative characteristics that make the information provided in financial statements useful to users?

Which of the following statements about the IASB Framework are correct? (1) The Framework deals with the qualitative characteristics of financial statements. (2) The Framework normally prevails over International Accounting Standards where there is a conflict between the two. (3) The Framework deals with the objectives of financial statements.

Which TWO of the following are roles of the International Accounting Standards Committee Foundation?

Which TWO of the following are parts of the 'due process' of the IASB in issuing a new International Financial Reporting Standard?

Which TWO of the following should be taken into account when determining the cost of inventories per IAS2 Inventories?

According to IAS2 Inventories, which TWO of the following costs should be included in inventory valuations?

Are the following statements true or false, according to IAS2 Inventories? (1) Cost of factory management should be included in the cost of inventory. (2) Maintenance expenses for an item of equipment used in the manufacturing process should be included in the cost of inventory.

The Coronet Company has a cost card in relation to an item of goods manufactured as follows: Materials 70 Storage costs of finished goods 18 Delivery to customers 4 Irrecoverable purchase taxes 6 According to IAS2 Inventories, at what figure should the item be valued in inventory?

The Parrotbill Company produces units of product UB06. The following costs have been incurred: Direct materials and labour 1.80 Variable production overhead 0.25 Factory administrative costs 0.15 Fixed production costs 0.20 Under IAS2 Inventories, what is the correct inventory value of a unit of product UB06?

The Hopkins Company is a manufacturing company. The cost per unit of an item of inventory is shown on its card as follows: Materials 30 Production labour costs 33 Production overheads 12 General administration costs 10 Marketing costs 5 According to IAS2 Inventories, what is the value of one completed item of inventory in Hopkins's statement of financial position?

The Motmot Company has partially-completed inventory located in its factory, to which the following estimates relate: Production costs incurred to date 2,900 Production costs to complete 2,000 Transport costs to customer 300 Future selling costs 400 Selling price 2,800 According to IAS2 Inventories, what is the net realisable value of Motmot's inventory?

The Whimbrel Company has two products in its inventory which have costs and selling prices per unit as follows: Product X: Selling price 200 Materials and conversion costs 150 General administration costs 30 Selling costs 60 Profit/(loss) (40) Product Y: Selling price 300 Materials and conversion costs 180 General administration costs 80 Selling costs 70 Profit/(loss) (30) At the year end, the manufacture of items of inventory has been completed but no selling costs have yet been incurred. According to IAS2 Inventories, should these products be carried in Whimbrel's statement of financial position at cost or net realisable value (NRV) rule?

What is the minimum requirement for the number of parts of an asset that should be identified?

If an entity wishes to change from a cost model to fair value model under IAS 40 - Investment Property, when may it do so?

An investment property shall be measured initially at its __________.

According to IAS 28 Investments in Associates and Joint Ventures, which one of the following statements best describes the term ‘significant influence’?

Under IAS 36, reversal of impairment loss is allowed if

In a period of rising prices, applying the FIFO method in determining cost of inventories would result in a lower cost of sales and higher closing inventory than the AVCO method.