A company's financial statements must disclose the accounting policies used in measuring inventories.

A contingent asset should be disclosed by note if an inflow of economic benefits is probable.

A contingent liability is not recognised in the statement of financial position.

A gain or loss arising from a change in the fair value of an investment property should be recognised in the revaluation surplus.

A truck held for resale should be considered as a non-current asset in the statement of financial position.

According to IAS 12 Income taxes, "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 IAS 12 Income taxes, “The tax base for a machine for tax purposes is greater than the carrying amount in the financial statements up to the end of the reporting period. This will give rise to a deferred tax asset.”

According to IAS 12 Income taxes, deferred tax assets are the amounts of income taxes recoverable in future periods in respect of deductible permanent differences.

According to IAS 12 Income taxes, deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.

According to IAS 12 Income taxes, interest expense accrued but included in taxable profit on a cash basis should be classified under deductible temporary differences.

According to IAS 12 Income taxes, is the following statement in relation to deferred tax liabilities true or false? are the amounts of income taxes recoverable in future periods in respect of deductible temporary differences.

According to IAS 12 Income taxes, where accumulated depreciation on an asset is greater than accumulated tax depreciation, the amount should be classified under deductible temporary differences.

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

According to IAS 16 Property, plant and equipment, the cost includes the fair value of any non-monetary consideration given to acquire an asset.

According to IAS 2 Inventories, cost of factory management should be included in the cost of inventories.

According to IAS 2 Inventories, maintenance expenses for an item of equipment used in the manufacturing process should be included in the cost of inventories.

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.

According to IAS 37 Provisions, contingent liabilities and contingent assets, an obligation as a result of the entity creating a valid expectation that it will discharge its responsibilities is a contingent liability.

According to IAS 38 Intangible assets, expenditure during the development phase of a project may sometimes be capitalised as an intangible asset.

According to IAS 38 Intangible assets, expenditure during the research phase of a project may sometimes be capitalised as an intangible asset.

According to IAS 38 Intangible assets, intangible assets cannot be treated as having an indefinite useful life.

According to IAS 38 Intangible assets, intangible assets with a finite useful life should be measured at cost and tested annually for impairment.

According to IAS 40, transfer to or from investment property should only be made when there is a change in their use. Which of the following statements is true provided that the lease transfers ownership of the underlying asset to the lessee by the end of the lease term?

According to IFRS 16 Leases, any initial direct costs incurred by a lessee are added to the amount of the asset recognised in the statement of financial position.

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

An entity shall apply IFRS 16 to all leases, except leases of right-of-use assets in a sublease.

An entity should treat any difference between the measurement of an IAS 16 property and the measurement of an IAS 40 Investment Property at the date of transfer as an expense to the profit or loss.

An investment property is initially measured at cost, including transaction costs.

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.

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.

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.

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.

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.

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.

At the commencement date, a lessee shall measure the lease liability at the future value of the lease payments that are paid at that date.

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

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

Closing inventory is a credit in the statement of profit or loss.

Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise.

Custom duties are included in the cost of inventories.

Deferred tax liabilities are the amounts of income taxes recoverable in future periods in respect of taxable temporary differences.

Expense accrued and had been included in taxable profit resulted in deferred tax liability.

Expense accrued and had been included in taxable profit should be classified under taxable temporary differences.

Following initial recognition, investment property can be held at either cost or fair value.

IAS 16 applies to bearer plants but it does not apply to the produce on bearer plants.

If an investment property is held at fair value, this must be applied to all of the entity's investment properties.

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

If right-of-use assets relate to a class of property, plant and equipment to which the lessee applies the revaluation model in IAS 16, a lessee may elect to apply that revaluation model to all of the right-of-use assets that relate to that class of property, plant and equipment.

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?

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

IFRS 3 Business Combinations outlines the accounting required when one business combines with another, such as during an acquisition or merger. A business combination is defined as when one or more entities (subsidiaries) gains some control of another (the parent).

Bold-type paragraphs should be given greater authority than the paragraphs in plain text.

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.

In a period of rising prices, applying the FIFO method in measuring cost of inventories would result in a lower gross profit figure than the AVCO method.

In a period of rising purchase costs, FIFO usually gives a lower taxable income than AVCO and therefore, yields a tax advantage.

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

In valuing work in progress, materials costs, labour costs and variable and fixed production overheads must be included.

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.

Intangible asset with infinite useful life must be amortized.

Interest expense accrued but included in taxable profit on a cash basis resulted in deferred tax asset.

Interest expense accrued but included in taxable profit on a cash basis resulted in deferred tax liability.

Interest expense accrued but included in taxable profit on a cash basis should be classified under taxable permanent differences.

Interest expense accrued but included in taxable profit on a cash basis should be classified under taxable temporary differences.

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

Inventory should be valued at the lowest of cost, net realisable value and replacement cost.

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

A company's financial statements must disclose the accounting policies used in measuring inventories.

Inventory should be valued at the lowest of cost, net realisable value and replacement cost.

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?

It may be acceptable for inventories to be valued at selling price less estimated profit margin.

LIFO can be applied to measure cost of inventories.

No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote.

Profit is the residual amount that remains after expenses have been deducted from income.

Should the fees paid to accountants to effect the combination be included in the consideration transferred in a business combination, according to IFRS 3 Business combinations?

Should the following cost be included in the consideration transferred in a business combination, according to IFRS 3 Business combinations? Fees paid to accountants to affect the combination.

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

The cost of goods manufactured by an entity cannot include overhead costs.

The financial statements of the Farren Company for the year ended 31 December 20X8 included a provision for restructuring of £7 million and an environmental provision of £3 million. At 31 December 20X9, the environmental provision was no longer required and £2 million of the restructuring provision was no longer required. Under IAS 37, the environmental provision is to be written back to profit or loss.

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 re-allocated to cover the legal claims.

The Framework is a reporting standard.

The National Company acquired 80% of The Local Company for a consideration transferred of CU100 million. Local's net assets were CU85 million at the acquisition date. Goodwill should be measured at CU32 million if the non-controlling interests are measured at its share of Local's net assets.

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?

Trade discounts received must be deducted in measuring cost of inventories.

Under IAS 16, if a company builds an office building for its own use, it may account for the building at historical cost less accumulated depreciation and impairment losses, with depreciation and impairment losses recognised in profit or loss.

Under IFRS 3, the acquirer’s application of the recognition principle and conditions may result in recognising some assets and liabilities that the acquirer had not previously recognised as assets and liabilities in its financial statements.

Where accumulated depreciation on an asset is greater than accumulated tax depreciation, deferred tax liability incurs.

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.”

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.

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? “A gain or loss arising from a change in the fair value of an investment property should be recognised in the revaluation surplus.”

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?

The tax base for a machine for tax purposes is less than the carrying amount in the financial statements up to the end of the reporting period. This will give rise to a deferred tax asset.

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

Is the following statement in relation to a contingent liability true or false, 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.”

Is the following statement about the valuation of inventory is TRUE or FALSE? “A company's financial statements must disclose the accounting policies used in measuring inventories.”

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

Where accumulated depreciation on an asset is less than accumulated tax depreciation, deferred tax asset incurs.

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?

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?

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

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

Is the following statement true or false, according to IAS 2 Inventories? "Maintenance expenses for an item of equipment used in the manufacturing process should be included in the cost of inventories."

The financial statements of the Farren Company for the year ended 31 December 20x8 included an environmental provision of CU3 million. At 31 December 20X9, the environmental provision was no longer required. Is the proposed treatment of the provision shown below correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets? "The environmental provision is to be written back to profit or loss."

Deferred tax liabilities are the amounts of income taxes recoverable in future periods in respect of taxable temporary differences.

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

Is the following statement true or false, according to IAS 38 Intangible assets? "Expenditure during the research phase of a project may sometimes be capitalised as an intangible asset."

Should the following cost be included in the consideration transferred in a business combination, according to IFRS 3 Business combinations? Fees paid to accountants to affect the combination.

Where accumulated depreciation on an asset is less than accumulated tax depreciation, deferred tax liability incurs.

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

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

Expense accrued and had been included in taxable profit should be classified under deductible temporary differences.

Where accumulated depreciation on an asset is less than accumulated tax depreciation, the amount should be classified under taxable temporary differences.

The financial statements of the Farren Company for the year ended 31 December 20X8 included an environmental provision of CU3 million. At 31 December 20X9, the environmental provision was no longer required. Is the proposed treatment of the provision shown below correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets? “The environmental provision is to be written back to profit or loss.”

Do you provide for an obligated future cost?

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? “A gain or loss arising from a change in the fair value of an investment property should be recognised in the revaluation surplus.”

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?

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?

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?

Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of taxable permanent differences.

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

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?

Is the following statement about the valuation of inventory is TRUE or FALSE? “A company's financial statements must disclose the accounting policies used in measuring inventories.”

Is a footballer's contract an intangible asset?

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? “An investment property is initially measured at cost, including transaction costs.”

The financial statements of the Farren Company for the year ended 31 December 20X8 included a provision for restructuring of CU7 million. At 31 December 20X9, CU2 million of the restructuring provision was no longer required. An additional provision of CU2 million was needed for legal claims against the company. “CU2 million of the restructuring provision no longer required is to be re-allocated to cover the legal claims.” Is the proposed treatment of the provision shown above correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets?