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mutiple choice question IFRS 2021 TRAN
International Relations (Đại học Quốc gia Thành phố Hồ Chí Minh)
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IFRS MULTIPLE CHOICE QUESTIONS
truongthihanhdung@uel.edu.vn
(+84)96.672.4386
(+84)93.406.7343
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Contents
THE REGULATORY FRAMEWORK........................................................................................................ 2
THE IASB CONCEPTUAL FRAMEWORK............................................................................................. 4
PRESENTATION OF FINANCIAL STATEMENTS (IAS 1)................................................................... 12
IAS 7 Statement of cash flows................................................................................................................... 20
IFRS 5 NONCURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS.............22
IAS 18 Revenue........................................................................................................................................ 24
PART 2: REVENUES AND CONSTRUCTION CONTRACT................................................................ 25
IFRS 15 - REVENUES FROM CONTRACTS WITH CUSTOMERS..................................................... 29
Provisions, contingencies and events after the balance sheet date (IAS 37 and IAS 10)...........................35
IAS 37 PROVISION AND EVENTS AFTER THE REPORTING PERIOD............................................ 38
IAS 2 and IAS 11...................................................................................................................................... 43
IAS 16 Property, plant and equipment...................................................................................................... 47
IAS 38 – INTANGIBLES.......................................................................................................................... 54
IAS 8 Accounting policies accounting estimates and errors...................................................................... 61
IAS 36 Impairment of assets..................................................................................................................... 68
IAS 17 - LEASES...................................................................................................................................... 77
IAS 21 - THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES....................................... 79
1
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THE REGULATORY FRAMEWORK
1. The sources of regulation which comprise the regulatory framework for
financial reporting include:
A. Legislation
B. Accounting standards
C. Stock exchange regulations
D. All of the above
2. "Accounting standards set out the broad rules which govern financial reporting
but do not lay down the detailed accounting treatments of transactions and other
items". True or False?
A. True
B. False
3. The abbreviation "GAAP" stands for:
A. Globally accepted accounting practice
B. Generally accepted accounting practice
C. Globally accepted accounting principles
D. Generally accepted accounting principles
4. Standards issued by the International Accounting Standards Board (IASB)
are known as:
A. Financial Reporting Standards (FRSs)
B. International Accounting Standards (IASs)
C. International Financial Reporting Standards (IFRSs)
D. International Financial Standards (IFSs)
5. The body to which the International Accounting Standards Board is responsible is:
A. The IFRS Advisory Council
B. The IFRS Interpretations Committee
C. The IFRS Foundation
D. The Monitoring Board
6. One of the main advantages of standardisation in financial reporting is:
A. Comparability between accounting periods and between entities
B. The production of prudent financial statements
C. Increased flexibility in financial reporting
D. The use of creative accounting practices
7. IFRS1 First-time Adoption of International Financial Reporting Standards
defines the date of transition to IFRS as:
A. The date at the end of the first IFRS reporting period
B. The date at the start of the earliest period for which comparatives are provided in
the first IFRS financial statements
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C. The date at the end of the earliest period for which comparatives are provided
in the first IFRS financial statements
D. The date at the start of the first IFRS reporting period
8. "An entity which adopts international financial reporting standards must always
adhere to the requirements of every standard, no matter what the
circumstances". True or False?
A. True
B. False
9. The role of the IFRS Advisory Council is to:
A. Chair the meetings of the IASB
B. Interpret the application of international standards
C. Appoint members to the IASB
D. Informthe IASB of the Council's views on standard-setting projects
10. The word "entity" as used by the IASB refers to:
A. Profit-oriented organisations only
B. Companies only
C. Not-for-profit organisations only
D. Corporations only
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THE IASB CONCEPTUAL FRAMEWORK
1. A conceptual framework for financial reporting is:
a. A set of items which make up an entity's financial statements
b. A set of regulations which govern financial reporting
c. A set of principles which underpin financial reporting
d. A set of financial reporting standards
2. The IASB conceptual framework is being developed jointly with:
a. The UK Accounting Standards Board
b. Accounting standards boards throughout the world
c. The European Union
d. The US Financial Accounting Standards Board
3. The primary users of general purpose financial reports are:
a. Investors and employees
b. Investors and lenders
c. Employees and lenders
d. Investors and customers
4. The fundamental qualitative characteristics of financial information are:
a. Relevance and faithful representation
b. Relevance and comparability
c. Faithful representation and comparability
d. Verifiability and understandability
5. The enhancing qualitative characteristics of financial information include:
a. Relevance and faithful representation
b. Comparability and understandability
c. Relevance and timeliness
d. Understandability and faithful representation
6. Which of the following is not a contributory factor towards faithful representation?
a. Completeness
b. Freedom from error
c. Neutrality
d. Predictive value
7. Allowing a choice of alternative accounting treatments improves the consistency and
comparability of financial statements. True or False?
a. True
b. False
8. The elements of financial statements which relate to financial position are:
a. Income and expenses
b. Income, expenses and equity
c. Assets, liabilities and equity
d. Assets, liabilities, income and expenses
9. If the current cost measurement basis is used, assets are measured at:
a. Replacement cost
b. The amount paid to acquire them
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c. The amount which could be obtained by selling them
d. Present value
10. Under the concept of physical capital maintenance, profit is defined in terms of the increase in
an entity's operating capability during an accounting period. True or False?
a. True
b. False
11. Which one of the following is an internal user of financial statements?
a. Management
b. Government
c. Customers
d. Lenders
12. One purpose of accounting information is to help users assess how effectively the managers are
running the business and to make judgements about likely levels of risk and return in the future.
Which user group is most likely to use accounting information for this purpose?
a. Community representatives
b. Employees
c. Government
d. Owners
13. Which one of the following is an internal user of financial information?
a. Tax authorities
b. Lenders
c. Suppliers
d. Management
14. One purpose of accounting information is to help certain users assess how effectively the
managers are running the business and to make judgements about likely levels of risk and return
in the future. Which one of the following user groups is most likely to use accounting
information for this purpose?
a. Government
b. Employees
c. Owners/shareholders/investors
d. Community representatives
15. Which user group usually has most control over the range and content of information it
receives?
a. Lenders
b. Suppliers
c. Managers
d. Investment analysts
16. There are four main qualitative characteristics that influence the usefulness of accounting:
relevance, reliability, comparability and...
a. Accuracy
b. Timeliness
c. Understandability
5
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d. Objectivity
17. In order for a piece of information to be reliable, which ONE of the following attributes should it
possess?
a. Absence of significant bias
b. Clarity of reporting
c. Timeliness
d. Consistency
18. In theory, accounting information should be produced until the point where:
a. The value of the information to users is maximised
b. The cost of the information is minimised
c. The value of the information can no longer be quantified in monetary terms
d. The cost of providing it exceeds the benefits
19. For a piece of information to be relevant, it should possess the attribute of...
a. Timeliness
b. Comparability
c. Objectivity
d. Accuracy
20. The idea that financial statements should be free from bias is part of which characteristic?
a. Understandability
b. Relevance
c. Comparability
d. Reliability
21. Which qualitative characteristic is most closely associated with the confirmation of past events
and prediction of future events?
a. Comparability
b. Reliability
c. Relevance
d. Understandability
22. Which qualitative characteristic is enhanced by treating items that are basically the same in the
same manner?
a. Reliability
b. Relevance
c. Comparability
d. Understandability
23. Not-for-profit organisations have
user groups to private sector businesses. Their groups
use accounting information for
purposes.
a. Different - Decision-making
b. Similar - Regulatory
c. Similar - Decision-making
d. Different - Regulatory
24. Deciding whether to produce an item of accounting information is a question of balancing the
against the
.
a. Risks - Returns
6
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25.
26.
27.
28.
29.
30.
b. Benefits - Costs
c. Time - Effort
d. Revenue - Expenses
In addition to possessing the four main qualitative characteristics of accounting, information
must also cross the threshold of
to be considered useful.
a. Accuracy
b. Objectivity
c. Materiality
d. Timeliness
Which user group is likely to be most interested in the growth of the wealth of a business entity,
and the profit relative to the money tied up in that entity?
a. Employees
b. Investors
c. Customers
d. Lenders
The objective of financial accounting is (several possible answers):
a. To support informed judgements and decisions by users
b. To measure the likely risks and returns associated with an entity
c. To provide quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions, in making resolved
choice among alternative courses of action
d. To provide information about the reporting entity's financial performance and financial
position that is useful to present and potential investors for assessing the stewardship of
the entity's management and for making economic decisions
e. To provide timely and accurate information to facilitate budgetary control over
revenues and costs
Which user group is likely to be most interested in the growth of wealth of an entity, and the
profit relative to the money tied up in the entity?
a. Customers
b. Lenders
c. Investors
d. Employees
e. None of the above
According to the IASB Framework, the main purpose of financial reporting is to:
a. Help the managers to run the business
b. Enable investors to make economic decisions
c. Calculate taxable income
d. Determine distributable profit
e. None of the above is correct
According to the IASB Framework:
a. The relative importance of the characteristics in different cases is a matter of
professional judgement
b. Relevance overrides reliability
c. Prudence overrides relevance
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d. Reliability overrides relevance
e. Relevance and reliability must be maximised, with a trade-off when they conflict
31. The convention of consistency refers to the consistent use of accounting principles for the same
items...
a. In a single period across firms
b. Throughout accounting periods within a reporting entity
c. Throughout an accounting period
d. Within industries
e. Throughout accounting periods within a reporting entity or in a single period across
entities
32. The charging of depreciation expense over the life of an asset rather than the immediate full
expensing of its cost is an example of:
a. Reliability
b. Matching
c. Prudence
d. Consistency
e. None of the above is correct
33. Which of the following statements best describes the term 'going concern'?
a. The potential to contribute to the cash flows of the entity
b. The income less expenses of an entity is negative
c. The ability of the entity to continue in operations for the foreseeable future
d. When current assets less current liabilities become negative
e. None of the above is correct
34. Which of the following is the best description of 'reliability' in relation to information in financial
statements?
a. Comprehensible to users
b. Influence on the economic decisions of users
c. Free from material error
d. Expresses a degree of caution
e. None of the above is correct
35. Which TWO of the following are listed in the IASB Framework as 'underlying assumptions'
regarding financial statements?
a. Financial statements are prepared using the accrual basis of accounting
b. The entity should be viewed as a going concern
c. The financial statements are reliable
d. Any change in accounting policy is neutral
e. None of the above is correct
36. 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?
a. Understandability
b. Accrual
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37.
38.
39.
40.
41.
42.
43.
c. Going concern
d. Relevance
e. None of the above is correct
Which of the following qualitative characteristics or constraints is violated by this statement? 'A
series of reports that are time-consuming and expensive to prepare are presented to the board
of directors each month even though the reports are never used'
a. Comparability
b. Completeness
c. Balance between benefit and cost
d. Materiality
e. Prudence
Which of the following best describes the usefulness of financial statements?
a. General purpose financial statements used by investors, creditors, regulators and
management
b. General purpose financial statements used by parties internal to the business entity
c. Financial statements used mainly by management
d. Financial statements used exclusively by investors
What is the objective of accrual accounting?
a. To match expenses with cash received in the period
b. To provide financial information to help investors determine current cash flows
c. To match expenses with revenues earned
d. To match cash inflows with cash outflows
When the accrual basis of accounting is used, judgemental adjustments are necessary to
calculate the income and expenses appearing in the income statement.
a. True
b. False
The owners' interest in a business is equal to:
a. The total assets less the total liabilities of the business
b. The total assets of the business
c. The total assets less the current liabilities of the business
d. The total liabilities of the business
At present, all non-USA-based companies are required to prepare a reconciliation statement
between their profit figure and a profit figure based on the US GAAP, in order that their shares
may continue to be quoted on the USA Stock Exchange.
a. True
b. False
One of the required qualitative characteristics of financial statements is that they should be
'relevant'. Which one of the following is not a requirement to make the statements relevant?
a. Have predictive value for future performance
b. Have information value of past costs
c. Have confirmative value for assessing past performance
d. Useful for economic decisions by user groups
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44. An asset is defined as the right to economic benefit from a resource controlled by the entity as a
result of past transactions. A liability is defined as the obligation to transfer economic benefit as
a result of past transactions.
a. True
b. False
45. A complete definition of an asset is that it is a resource controlled by an entity and from which
future economic benefits are expected to flow.
a. True
b. False
46. A complete definition of a liability is that it is an obligation of an enterprise arising from past
events, the settlement of which is expected to result in the outflow of resources.
a. True
b. False
An asset is defined as the right to economic benefit from a resource controlled by the
enterprise as a result of past transactions. A liability is defined as the obligation to
transfer economic benefit as a result of past transactions.
a. True
b. False
47. If there is a present obligation as a result of an obligating event and a probable outflow of
resources based on a reliable estimate, then an entity should:
a. Report in the following accounting period
b. Disclose a contingent liability
c. Make a provision
d. None of the above
48. There are at least two different concepts of capital maintenance:
 Operating capital maintenance Financial & Physical capital
 Physical capital maintenance
a.
b.
True
False
UPDATES
CONCEPTUAL FRAMEWORK
1. A conceptual framework sets out the detailed accounting treatment of transactions
and other items.
A. True
B. False
2. Which of the following is not a purpose of a financial reporting
conceptual framework?
A. Development of new reporting practices
B. Evaluation of existing reporting practices
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3.
4.
5.
6.
7.
8.
9.
C. Enforcement of existing reporting practices
Which of the following is not an advantage of having a conceptual framework
of accounting?
A. Development of accounting standards is subject to less politicalDELL
pressure
2021-01-27 23:43:43
B. A consistent balance sheet or income statement approach is used to setting
-------------------------------------------standards
A.
B. disad
C. Considers the needs of all users
C. not a Disadvan
D. Avoids a mixed up approach to setting standards
Which of the following is not a disadvantage of having a conceptual framework
of accounting?
A. It does not allow for different conceptual bases depending on the user
B. It does not make the setting of accounting standards easier
C. It may hamper the development of preparing accounting standards
D. It may lead to inconsistent accounting practices
GAAP stands for:
A. Generally accepted accounting principles
B. Globally accepted accounting practice
C. Generally allowable accounting principles
D. Generally allowable accounting practice
Which of the following are components of Generally Accepted Accounting
Practice (‘GAAP’)?
A. Stock exchange requirements
B. Regional bodies (eg. European Union directives)
C. National accounting standards
D. National company law
E. All of these
Which of the following is not a chapter of the IASB Framework?
A. The objective of financial statements
B. The elements of financial statements
C. Concepts of capital and capital maintenance
D. Concepts of income and expenditure
E. Recognition of the elements of financial statements
A conceptual framework for accounting is..
A. A set of financial statements
B. A set of rules governing financial reporting
C. A set of components of financial statements
D. A set of principles underpinning financial reporting
Conceptual frameworks limit the consistency and comparability of
financial statements.
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A. True
B. False
10. Which of the following relate to financial position in a set of financial statements?
A. Assets, liabilities, income and expenses
B. Assets, liabilities and equity
C. Income and expenses
D. Income, expenses and liabilities
PRESENTATION OF FINANCIAL STATEMENTS (IAS 1)
1. Which of the following is not a component of a complete set of financial
statements?
a. A statement of changes in equity
b. A management commentary
c. A set of notes
d. A statement of cash flows
2. The IASB requires all entities to produce interim financial statements. True or False?
a. True
b. False
3. An entity which complies with IFRS may depart from the requirements of an
international standard:
a. Whenever it wishes to do so
b. If compliance would produce misleading information
c. If compliance costs would be excessive
d. Never
4. Items of financial information are material if:
a. They are insignificant
b. They could not influence the economic decisions made by the users of financial
statements
c. They could influence the economic decisions made by the users of financial
statements
d. They are aggregated with other items
5. The information which must be provided so as to properly identify each component
of a set of financial statements does not include:
a. The name of the reporting entity
b. The presentation currency used
c. The level of rounding used
d. The country in which the entity operates
6. Which of the following would generally not be classified as a current asset?
a. An asset held for the purpose of being traded
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8.
b. A cash equivalent
c. An asset intended for consumption within the entity's normal operating cycle
d. An asset held for long-term use within the entity
7. Standard IAS1 does not prescribe a format for each of the primary financial
statements. True or False?
a. True
b. False
The main financial performance statement is:
a. The statement of comprehensive income
b. The statement of financial position
c. The statement of changes in equity
d. The statement of cash flows
9. The main purpose of the statement of changes in equity is:
a. To show an entity's assets, liabilities and equity at the end of an accounting
period
b. To show an entity's income, expenses and profit for an accounting period
c. To show how each component of an entity's equity has changed during an
accounting period
d. To show an entity's total equity at the end of an accounting period
10. The notes to the financial statements should provide information:
a. About the entity's accounting policies
b. As required by international standards, if not presented elsewhere in the
financial statements
c. Which is relevant to an understanding of the financial statements
d. All of the above
11.
Which of the following is a correct statement about shareholders' equity?
a. It equals cash at the bank
b. It includes share capital, reserves, retained earnings and non-current liabilities
c. It includes issued share capital and retained earnings
d. It first appears in the income statement when the business is set up
12. If a company had an issued share capital of $450,000 a share premium of $187,500
and a loss of $25,000, what would be the shareholders'equity?
a. $637,500
b. $612,500
c. $600,000
d. $662,500
13. Which of the following is not normally found in the equity section of a company's
statement of financial position?
a. Retained earnings as the profit and loss account balance
b. Ordinary share capital
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c. Dividends payable to the ordinary shareholders
d. Share premium
14. A computer engineer started with $100,000 in the bank on 1 January. During the
first six months customers paid her $40,000 for software design and she paid out
$25,000 for expenses and drew $5,000 for personal use. How much profit did she
make?
a. $115,000
b. $15,000
c. $110,000
d. $10,000
15. What does an income statement reflect?
a. The assets less non-current liabilities and the resulting profit or loss
b. The income and expenses for a period and the resulting profit or loss
c. The assets less current liabilities and the resulting profit or loss
d. The cash receipts and payments for a period and the resulting cash surplus or
deficit
16. Expenses are recorded:
a. When goods or services are received whether or not cash has been paid
b. When cash is paid after goods or services have been received
c. When cash is paid on receipt of goods or services
d. When cash is paid whether or not goods or services have been received
17. Financial statements include a statement of financial position, an income statement
and a statement of changes in equity. Which TWO of the following are also included
within the financial statements?
a. An auditor's report
b. A statement of cash flows
c. A directors' report
d. Summary of accounting policies
e. None of the above is correct
18. Which of the following are mandatory requirements?
1) Statement of cash flows.
2) Operational and financial review statement.
3) Statement of comprehensive income.
4) Statement of changes in equity.
5) Statement of financial position.
a. 1, 3, 4 and 5
b. 1, 2 and 3
c. 1, 3 and 5
d. None of the above
e. All of the above
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19. Expenses may be classified by function (type of operation) or by their nature (type of
expenditure). In which manner does IAS 1 require the income statement of a
company to be shown?
a. By both
b. By nature only
c. By function only
d. By either
Explanation: Companies can choose to report expenses in their income statement
classified by either their function or their nature.
20. Which of the following are typically included in distribution and selling costs?
1) Warehouse costs.
2) Audit fees.
3) Advertising.
4) Amounts written off trade receivables.
a. 2 and 3
b. 1 and 3
c. 1 and 2
d. 3 and 4
21. IAS 1 illustrates a layout for the statement of financial position in an Appendix.
Comparo Ltd is proposing to use the following layout for its statement of financial
position. Would this be allowed under IAS 1?
Non-current assets
Current assets
Current liabilities
Net current assets
Total assets less current liabilities
Non-current liabilities
Net assets
Equity
a. True
b. False
bù
22. In general, assets and liabilities are permitted to be offset against one another when
the initial transactions occurred at the same time.
a. True
b. False
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23. Many entities will often have good reasons to change the presentation within their
financial report and changes are permitted as long as the $ amounts of each line
item do not change.
a. True
b. False
24. Financial institutions are permitted to list assets and liabilities on the balance sheet
in order of liquidity.
a. True
b. False
UPDATES:
IAS 1
1. What type of asset is:
– expected to be realised in the normal course of business; or
– is held primarily for trading purposes; or
– is cash or a cash equivalent
A. Current asset
B. Non-current asset
C. Intangible asset
D. Long term investments
2. Which of the following terms is used to describe an asset held for more than 12
months?
A. Non-current asset
B. Fixed asset
C. Long-term asset
D. All of the above
3. A current asset or liability is expected to be recovered or settled within..
A. Three months
B. Six months
C. Twelve months
D. Twenty four months
E. None of the above
4. Under IAS 1, how often should financial statements be prepared?
A. At least annually
B. No more than annually
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C. As often as the company requires
D. Monthly
5. When is offsetting permitted under IAS 1?
A. Always
B. Never
C. When required or permitted under an IFRS
D. When approved by the board of directors
6. Which of the following is not a required disclosure under IAS 1?
A. Number of employees
B. Assets held for sale
C. Provisions
D. Intangible assets
7. How many formats are permitted for income and expense items under IAS 1?
A. One
B. Two
C. Three
D. None
8. What is the term used to describe the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents?
A. Processing cycle
B. Turnover
C. Operating cycle
D. Turnaround
9. Which of the following is not a requirement in the financial statements under IAS 1?
A. Name of the entity
B. Whether accounts cover a single entity or a group
C. Chairman’s commentary on performance
D. The accounting period
E. Presentation currency
10. Which sections of an annual report do IFRSs apply to?
A. Management report
B. Financial statements
C. Auditors report
D. Entire annual report
11. Which of the following is a current liability?
A. Bank overdraft
B. Mortgage
C. Preference shares
D. Retained earnings
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12. Dividends per share should not be shown in…
A. Statement of Changes in Equity
B. Statement of Financial Position
C. Notes to the financial statements
13. Which of the following is not a liability?
A. Government grants repayable
B. Amounts owed to shareholders as capital
C. Debentures
D. Rebates payable
14. Which of the following is not a component of a Statement of Financial Position?
A. Non-current assets
B. Inventories
C. Cost of goods sold
D. Retained Earnings
E. Deferred tax
15. Where should extraordinary items appear in an entity’s Statement of Comprehensive
Income?
A. Other Comprehensive Income
B. Income Statement
C. Notes
D. Nowhere
16. Which of the following is true?
A. IAS 1 stipulates the order in which items should be presented
B. IAS 1 stipulates that material items that are different in nature must be presented
separately
C. IAS 1 stipulates that material items may be aggregated
D. None of the above
17. Which of the following disclosures are not required in relation to share capital on
the SOFP?
A. Number of shares authorised
B. Number of share issued and fully paid
C. Names of individual shareholders
D. Shares in entity held by itself of by related group companies
E. Par value of shares
18. Accumulated profits (minus any losses) held by an entity are called:
A. Provisions
B. Equity
C. Retained earnings
D. Shareholders’ funds
19. Which of the following is not contained in the notes to the financial statements
under IAS 1?
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A. A statement of compliance with IFRS
B. Measurement basis used
C. Details of specific accounting policies used
D. Numbers of employees
20. What is another name for a share’s “nominal value”?
A. Share premium
B. Par value
C. Market value
D. Discounted value
21. When a company issues shares for more than their nominal amount, the excess
is called…
A. Share excess
B. Share premium
C. Share markup
D. Par value
22. Which of the following is not a requirement of a current liability?
A. Expected to be settled in the entity’s operating cycle
B. Held primarily for trading
C. Expected to be settled within 12 months of reporting period
D. Entity holds an unconditional right to defer settlement for over 12 months
after reporting period
23. Which of the following is not a minimum item on the face of the statement of
comprehensive income?
A. Revenue
B. Finance costs
C. Deferred tax
D. Profit or loss
E. Total comprehensive income
24. Which of the following are examples of current assets?
A. Motor vehicles
B. Prepayments
C. Share premium
D. Goodwill
25. Under IAS 1, which of the following must be disclosed on the face of the statement
of financial position?
A. Property, Plant and Equipment
B. Biological Assets
C. Provisions
D. Non-controlling interests
E. All of the above
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IAS 7 Statement of cash flows
1. Which of the following is not a characteristic of an entity's cash equivalents, as defined
by international standard IAS7?
a. A short-term investment
b. A highly liquid investment
c. An investment which is readily convertible into known amounts of cash
d. An investment which is subject to significant risk of changes in value
2. Bank overdrafts are generally regarded as a component of an entity's cash and cash
equivalents. True or False?
a. True
b. False
3. Cash inflows and outflows arising from operating activities do not include:
a.
Cash receipts from the sale of goods and services
b.
Cash receipts from the sale of property, plant and equipment
c.
Cash payments to employees
d.
Cash payments to suppliers for goods and services
4. Which of the following is a cash inflow or outflow arising from investing activities?
a.
Cash received from the repayment of loans made to other parties
b.
Royalties received
c.
Cash repaid to lenders
d.
Cash received on the issue of loan stock
5. Which of the following is not a cash inflow or outflow arising from financing activities?
a. Cash proceeds of a share issue
b. Cash proceeds from issuing debentures
c. Cash payments to acquire equity of other entities
d. Cash repayments of amounts borrowed
6. If cash flows from operating activities are reported using the direct method, the
statement of cash flows does not show:
a. Cash received from customers
b. Depreciation charges
c. Cash paid to suppliers
d. Cash paid to employees
7. A company uses the indirect method for reporting cash flows from operating activities.
During an accounting period, inventories have risen by £5,000, trade receivables have
fallen by £4,000 and trade payables have risen by £3,000. When calculating the net cash
inflow or outflow from operating activities, the required adjustments are as follows:
a. Subtract £5,000, Add £4,000, Subtract £3,000
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b. Add £5,000, Subtract £4,000, Add £3,000
c. Add £5,000, Subtract £4,000, Subtract £3,000
d. Subtract £5,000, Add £4,000, Add £3,000
8. A company uses the indirect method for reporting cash flows from operating activities.
During an accounting period, plant which had cost £30,000 some years ago was sold for
£3,000. The accumulated depreciation on this plant at the time of disposal was £25,000.
The effects of this transaction on the statement of cash flows are as follows:
a. Operating activities:
Subtract loss on disposal £2,000
Investing activities:
Dr AD 25000
Dr Cash 3000
Dr Loss on disposal
2000 Cr PPE 30000
Cash received on disposal of plant £3,000
b. Operating activities:
Add disposal proceeds £3,000
Investing activities:
Subtract loss on disposal of plant £2,000
c. Operating activities:
Add back loss on disposal £2,000
Investing activities:
Cash received on disposal of plant £3,000
d. Operating activities:
Add back loss on disposal £5,000
Investing activities:
Cash received on disposal of plant £3,000
9. The sale of an investment which ranks as a cash equivalent is treated as a cash inflow
from investing activities. True or False?
a. True Investing activities are investing activities are the acquisition and disposal of long-term assets and
b. False other investments that are not considered to be cash equivalents [IAS 7.6]
10. IAS7 requires that all entities which comply with international standards should present
a statement of cash flows. True or False?
a. True
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b. False
IFRS 5 NONCURRENT ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS
1. A non-current asset should be classified as held for sale only if:
a. Its carrying amount will be recovered principally through a sale transaction
rather than through continuing use
b. Its carrying amount will be recovered wholly through a sale transaction rather
than through continuing use
c. Its carrying amount will be recovered principally through continuing use rather
than through a sale transaction
d. Its carrying amount will be recovered wholly through continuing use rather than
through a sale transaction
2. The conditions which must be satisfied in order for the sale of an asset to be deemed
"highly probable" include:
a. Management is considering a plan to sell the asset
b. The asset is being marketed at a price which greatly exceeds its fair value
c. A completed sale is expected within five years
d. None of the above
3. A disposal group always consists of a number of cash-generating units. True or False?
a. True
b. False
4. A non-current asset held for sale should be measured at:
a. The higher of the asset's carrying amount when originally classified as held for
sale and its fair value less costs to sell
b. The asset's carrying amount when originally classified as held for sale, less any
accumulated depreciation since that date
c. Fair value less costs to sell
d. The lower of the asset's carrying amount when originally classified as held for
sale and its fair value less costs to sell
5. On 1 November 2011, a company which prepares financial statements to 31 March each
year classifies a non-current asset as held for sale. The asset's carrying amount on 1
November 2011 is £40,000 and its fair value less costs to sell is £35,000. The asset is still
held on 31 March 2012, when its fair value less costs to sell is £27,500. The impairment
losses that should be recognised are:
a. 1/11/2011 £nil; 31/3/2012 £12,500
b. 1/11/2011 £5,000; 31/3/2012 £12,500
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c. 1/11/2011 £5,000; 31/3/2012 £7,500
d. 1/11/2011 £nil; 31/3/2012 £nil
6. If certain types of asset are classified as held for sale, they should continue to be
measured in accordance with the standard that normally applies to that type of asset
rather than being measured in accordance with the requirements of standard IFRS5.
True or False?
a. True
b. False
7. An asset which ceases to be classified as held for sale should be measured at the lower
of its carrying amount before being classified as held for sale (less any depreciation that
would normally have been charged in the meantime) and:
a. Fair value less costs to sell at the date of the decision not to sell
b. Value in use at the date of the decision not to sell
c. The higher of fair value less costs to sell and value in use at the date of the
decision not to sell
d. The lower of fair value less costs to sell and value in use at the date of the
decision not to sell
8. Non-current assets held for sale should be presented separately from other assets in the
statement of financial position. True or False?
a. True
b. False
9. A discontinued operation is defined as a component of an entity which:
a. Has been disposed of
b. Is classified as held for sale
c. Has been disposed of or is classified as held for sale
d. Is expected to be disposed of within the next 12 months
10. With regard to discontinued operations, an entity's statement of comprehensive income
should show a single amount comprising:
a. The post-tax profit or loss of discontinued operations
b. The post-tax profit or loss of discontinued operations and the post-tax gain or
loss on the remeasurement or disposal of the assets of discontinued operations
c. The pre-tax profit or loss of discontinued operations
d. The pre-tax profit or loss of discontinued operations and the pre-tax gain or loss
on the remeasurement or disposal of the assets of discontinued operations
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IAS 18 Revenue
1. With regard to the definition of revenue given by international standard IAS18, which of
the following statements is true?
a. Revenue may arise from either ordinary activities or extraordinary activities
b. Revenue may arise from the sale of goods, the rendering of services or the use
by other parties of an entity's assets
c. Revenue includes cash received from borrowings
d. Revenue includes cash received from share issues
2. If the inflow of cash relating to a sales transaction is delayed until some time after the
transaction has occurred, the amount of revenue arising is discounted to present value,
so long as the effect of such discounting is material. True or False?
a. True
b. False
3. Which of the following is not a condition which must be satisfied before revenue arising
from a sale of goods may be recognised?
a. The seller has transferred the significant risks and rewards of ownership to the
buyer
b. The seller no longer has effective control over the goods concerned
c. It is certain that the economic benefits associated with the transaction will flow
to the seller
d. The costs incurred in respect of the transaction can be measured reliably
4. In the case of a sale of goods, the risks and rewards of ownership always pass from the
seller to the buyer when legal title to the goods is transferred. True or False?
e. True
f. False
5. Which of the following is a condition which must be satisfied before revenue arising
from the rendering of services may be recognised?
a. The amount of revenue can be measured reliably
b. It is certain that the economic benefits associated with the transaction will flow
to the seller
c. The sales transaction is 100% complete at the end of the reporting period
d. The costs incurred in respect of the transaction can be measured with certainty
6. Revenue consisting of dividends from other companies is not recognised until actually
received. True or False?
a. True
b. False
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7. If goods are sold on approval, revenue may be recognised even if the buyer has not
formally accepted the goods, so long as the goods have been delivered to the buyer and
the time period for rejection and return has elapsed. True or False?
a. True
b. False
8. The accounting principle applied by standard IAS18 when determining whether or not
revenue should be recognised in respect of a sale and repurchase agreement is:
a. Relevance
b. Verifiability
c. Prudence
d. Substance over form
9. If the selling price of goods includes an amount for after-sales servicing and support,
then:
a. This amount should be recognised as revenue as soon as the seller has
transferred the risks and rewards of ownership of the goods to the buyer
b. This amount should be deferred and not recognised as revenue until the
servicing and support period has come to an end
c. This amount should be deferred and recognised as revenue over the period in
which the servicing and support services are provided
d. The amount of revenue associated with servicing and support services is equal to
the expected costs of providing these services
10. If goods are shipped to a recipient who undertakes to sell these goods on behalf of the
shipper, revenue should not be recognised until the goods have been sold to a third
party. True or False?
a. True
b. False
PART 2: REVENUES AND CONSTRUCTION CONTRACT
11. A company received a $12,000 cash deposit from a customer on 21 December but did
not deliver the goods until 8 January. The correct accounting treatment is:
a. A liability of $12,000 will be reported on the balance sheet at the end of
December
b. The income statement will report the revenue in January
c. Cash will be recorded in December
d. All of the above are true
e. All of the above are false
12. In March 2011, Black Ltd received a deposit of $10,000 for goods to be delivered in April
2011, which it reported as sales revenue in its accounts for the year ended 31st March
2011. The effect on the balance sheet is:
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a. The owner's interest is overstated and liabilities understated
b. The owner's interest is understated and liabilities overstated
c. Assets are overstated and liabilities understated
d. The owner's interest is understated and liabilities understated
13. Handy Ltd sells mobile phones. It recognises revenue in the income statement when:
a. The cash is collected from customers during the current period
b. Both cash and credit sales are made in the current period less accounts
receivable at the beginning of the period
c. Both cash and credit sales are made in the current period
d. Both cash and credit sales are made in the current period plus the accounts
receivable at the beginning of the period
14. Green, a garden designer, keeps her accounting records on a cash basis. During 2011
she received fees of $100,000. Her trade receivables at the beginning of the year
totalled $20,000 and at the end of the year $30,000. What is her income for 2011
calculated on an accrual basis?
a. $80,000
b. $70,000
c. $160,000
d. $110,000
15. Gogo Limited uses cash basis of accounting and reported sales revenue of $140,000
during the year. Assuming that trade receivables at the end of the year amounted to
$18,000 and $10,000 at the beginning of the year, what is the sales revenue on an
accrual basis for the year?
a. $148,000
b. $140,000
c. $132,000
d. $158,000
16. In September 2011, Entity X received a deposit of $25,000 for goods to be delivered in
October 2011, which it reported as sales revenue in its accounts for the year ended 30
September 2011. The effect on the balance sheet is:
a. The owners' interest is understated and liabilities overstated
b. The owners' interest is overstated and liabilities understated
c. The owners' interest is understated and liabilities understated
d. Assets are overstated and liabilities understated
17. In a transaction involving the sales of goods, performance should be regarded as being
achieved when the following conditions have been fulfilled:
a. The buyer has paid for the goods
b. The seller of the goods has transferred to the buyers the significant risks and
rewards of ownership
c. The seller of the goods has transferred the goods to the buyer
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d. All of the above conditions must be fulfilled
18. In addition, which of the following conditions must also be fulfilled?
a. No significant uncertainty exists regarding the consideration that will be derived
from the sale of the goods
b. No significant uncertainty exists regarding the goods being in saleable condition
c. No significant uncertainty exists regarding the extent to which the goods are
returned
d. No significant uncertainty exists regarding the associated costs incurred or to be
incurred in producing or purchasing the goods
e. All of the above conditions must be fulfilled
19. Handy Ltd sells mobile phones. It recognises sales revenue in the income statement:
a. When the cash is collected from customers during the current period
b. When both cash and credit sales are made in the current period
c. When both cash and credit sales are made in the current period less trade
receivables at the beginning of the period
d. When both cash and credit sales are made in the current period plus the trade
receivables at the beginning of the period
20. A company received a $12,000 cash deposit from a customer on 21 December 2011 but
did not deliver the goods until 8 January 2012. The correct accounting treatment is:
a. A liability of $12,000 will be reported on the balance sheet at the end of
December 2011
b. Cash will be recorded for the month of December 2011
c. The income statement will report the revenue in January 2012
d. All of the above are true
e. All of the above are false
21. In March 2011, Black Ltd received a deposit of $10,000 for goods to be delivered in April
2011, which it reported as sales revenue in its accounts for the year ended 31st March
2011. The effect on the balance sheet is:
a. Assets are overstated and liabilities understated
b. The owners' interest is overstated and liabilities understated
c. The owners' interest is understated and liabilities understated
d. The owners' interest is understated and liabilities overstated
22. Bulgar Ltd accepted a 6-month 9% note for $10,000 from a customer on 1 December
2009. The business prepares its annual accounts at 31 March each year. How much
interest should be recognised by Bulgar in its income statement for the years ended 31
March 2010 and 2011?
a. 2010: $600; 2011: $300
b. 2010: $0; 2011: $900
c. 2010: $450; 2011: $450
d. 2010: $1,800; 2011: $0
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23. The characteristics of a normal sale are that the vendor relinquishes physical control of
the asset and is no longer affected by changes in the asset, i.e. the risks are transferred.
a. True
b. False
24. The following statements refer to the treatment of construction contracts under IAS 11:
1) Construction contracts are always accounted for individually
2) Construction contracts are usually accounted for individually but can sometimes
be accounted for in groups
3) Construction contracts are usually accounted for individually, but sometimes a
single contract can be accounted for as more than one component
Which of the statements is/are true?
a. 1 and 2
b. Only statement 2 is true
c. 2 and 3
d. All statements are true
25. The following costs relate to an entity that engages in a number of construction
contracts:
1) Depreciation of PPE used on the contracts
2) Administrative costs relating to overall contract activities, allocated on a reasonable
basis
3) Administrative costs relating to the entity in general, allocated on a reasonable basis
Which of the above costs can be included in the cost of construction contracts under the
principles of IAS 11?
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. All of them
e. None of them
26. An entity carries out a construction contract that is 80% complete at the year end.
Relevant details are as follows:
Total contract price $1,000,000
Revenue recognised in previous periods $350,000
Costs incurred in previous periods $300,000
Costs incurred in current period $400,000
Estimated costs to complete the contract $100,000
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Costs recognised in income in previous periods $290,000
What will be recognised in the income statement in respect of this contract in the current
period?
a. Revenue: $800,000; costs: $640,000
b. Revenue: $650,000; costs: $400,000
c. Revenue: $450,000; costs: $350,000
d. Revenue: $450,000; costs: $400,000
27. An entity has recognised the following cumulative amounts in its financial statements in
respect of a long-term contract:
Revenue in the income statement $800,000
Costs taken to the income statement $600,000
Costs incurred to date $650,000
Progress payments invoiced to the customer $700,000
What will be the gross amounts shown in the balance sheet in respect of this contract?
a.
Due from customers: $100,000
Due to customers: nil
b.
Due from customers: $150,000
Due to customers: nil
c.
Due from customers: $850,000
Due to customers: nil
d.
Due from customers: $800,000
Due to customers: $700,000
PART 3: IFRS 15 - REVENUES FROM
CONTRACTS WITH CUSTOMERS
1. An entity shall recognise revenue to depict the transfer of promised goods or
amount that reflects the consideration to
services to customers in the
which the entity expects to be entitled in exchange for those goods or services.
a) Net
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b) Residual
c) Gross
d) Cumulative
2. Which of the following is an exception for application of IFRS 15?
a) Lease contracts
IFRS
b) Insurance contracts
IFRS
c) Pharmaceutical contracts
d) Financial audit contracts
e) All of the above
f) A and B
3. A contract is wholly unperformed if…
a) The entity has not yet transferred any promised goods or services to the customer
b) The entity has not yet received any consideration in exchange for promised goods
or services
c) The entity is not yet entitled to receive any consideration in exchange for
promised goods or services
d) All of the above
4. A contract modification is the change in the price and/or scope that is approved
by the parties to the contract in a written form only.
A. True
IFRS
B. False
Explanation: (A contract modification could be approved in writing, by oral agreement
or implied by customary business practices)
5. A good or service that is promised to a customer is distinct if…
a) The customer can benefit from the good or service on its own
b) The customer can benefit from the good or service together with other resources
that are readily available to the customer
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c) The entity’s promise to transfer the good or service to the customer is separately
identifiable from other promises in the contract
d) All of the above
6.
According to IFRS 15, the asset is transferred to a
customer…
a) When the asset is physically delivered to the customer’s premises
b) On the day specified by a contract with the customer
Para
c) When the customer obtains control over it
d) On the day when the entity satisfies all performance obligations, specified in
the contract with the customer
7. On 1 January 201X, a vendor enters into a contract with a customer to build an
item of specialised equipment, for delivery on 30 April 201X. However, the exact
delivery date is hard to estimate. The amount of consideration specified in the
contract is €300,000, but that amount will be decreased or increased by €500 for
each day, depending on whether the actual delivery date is before or after 30 April
201X. How should a vendor determine a transaction price for this contract?
a) A vendor needs to apply the most likely amount method in order to predict the
amount of consideration, because there is a range of possible outcomes
b) A vendor needs to apply expected value method in order to predict the amount
of consideration, because there is a range of possible outcomes
c) The transaction price for this contract should be the same as specified in the
contract with a customer, which is €300,000
d) The transaction price may only be calculated when the equipment is delivered
and exact amount of consideration is known
8. With regard to the definition of revenue given by IFRS15, which of the following
statements is true?
A. Revenue arises from ordinary activities only
B. Revenue may arise from either ordinary activities or extraordinary activities
C. Revenue includes cash received from share issues
D. Revenue includes cash received from borrowings
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9. 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?
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A.
B.
C.
D.
A.
B.
A.
B.
A. True
B. False
10. Step 1 of the "five-step model" states that certain conditions must be
satisfied before an entity can account for a contract with a customer. Which
of the following is not one of these conditions?
The payment terms can be identified
The entity and the customer have approved the contract and are committed to
perform their contractual obligations
Each party's rights with regard to the goods or services concerned can be identified
It is certain that the entity will collect the consideration to which it is entitled probable
11. A contract modification is always treated as a separate contract for the purposes of
IFRS15. True or False?
True
False
12. A single contract with a customer could include more than one
performance obligation and it is necessary to identify each performance
obligation in the contract. True or False?
True
False
13. A company enters into a contract to build a factory for a customer. The agreed
price is £2m and the specified completion date is 31 October 2020. However, the
contract provides that the company should receive an incentive payment of a
further £250,000 if the factory is completed by 30 September 2020. Similarly, the
price will be reduced by £250,000 if the factory is not completed until after 30
November 2020.
The company estimates that there is a 15% probability that the factory will be completed
by 30 September 2020, an 80% probability that it will be completed in October 2016 or
November 2020 and a 5% probability that it will not be completed until after 30
November 2020.
What is the expected value of the transaction price for this contract?
A. £2m
B. £2.125m
C. £1.975m
D. £2.025m
14. The accounting principle applied by IFRS15 when determining whether or
not revenue should be recognised in respect of a repurchase agreement is:
A. Substance over form
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B. Verifiability
C. Prudence
D. Relevance
15. A performance obligation is satisfied over time if:
A. The entity does not have an enforceable right to payment for the performance that has
been completed to date
B. The entity's performance creates an asset that the customer controls as it is created
C. The entity's performance creates an asset which has an alternative use to the entity
D. The customer does not receive or consume the benefits provided by the
entity's performance until the obligation is completely satisfied
16. A company enters into a contract to supply three distinct products to a customer.
The promise to supply each of these products is regarded as a separate
performance obligation. The stand-alone prices of the three products (if sold
singly) are:
Product X £12,500
Product Y £24,000
Product Z £27,500
The agreed contract price is £57,600. How should this price be allocated to performance
obligations?
A.
B.
C.
D.
A.
B.
A.
B.
C.
D.
Product X £10,367; Product Y £21,867; Product Z £25,366
Product X £11,250; Product Y £21,600; Product Z £24,750
Product X £19,200; Product Y £19,200; Product Z £19,200
Product X £12,500; Product Y £24,000; Product Z £27,500
17. If a contract with a customer provides a warranty, then the warranty always
represents a separate performance obligation and part of the transaction price must
be allocated to it. True or False?
True
False
18. In general, contract costs incurred in relation to a contract with a customer
must be:
Recognised as an asset if they relate to a performance obligation which has not yet
been satisfied
Recognised as an asset if they are not expected to be recovered
Recognised as an expense when incurred
Recognised as an asset if they relate to a performance obligation which has
been satisfied
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19. The carrying amount of contract costs relating to a performance obligation and
recognised as an asset is £120,000. Further costs required in order to satisfy the
obligation are estimated to be £30,000. The consideration receivable by the
company when the obligation is satisfied is £132,000.
Calculate the amount of the impairment loss (if any) which should be deducted from the
contract asset and recognised as an expense.
A.
B.
C.
D.
£18,000
£42,000
£nil
£30,000
Transaction price = 132000 (probable
consideration)
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Provisions, contingencies and events after the balance sheet date
(IAS 37 and IAS 10)
1. Provisions can be distinguished from other liabilities such as creditors and loans from a
bank when both criteria are met:
i. There is uncertainty about the amount of the future expenditure required in
settlement; and
ii.
There is uncertainty about the timing of the settlement event.
a. True
b. False
2. IAS establishes rules for recognition and measurement of provisions. Consider the
following:
1) future operating losses
2) accumulated amortisation of development costs
3) overdraft facilities offered by a Bank
4) onerous contracts.
Which of the above are likely to be included in the requirements for recognition as provisions
according to IAS 37?
a.
1, 3, 4
b.
1, 2, 4
c.
2, 3
d.
1, 2, 3
e.
1, 4
f.
2, 3, 4
3. If the likelihood of a contingent liability is possible, then the only disclosure required is:
(a) an estimate of its financial effect; and (b) the possibility of any reimbursement.
a. True
IAS 37.86: disclose financial effect; indication of uncertainty; possibility of any
b. False
4. A provision for restructuring would normally reflect a situation when:
a.
The amount recognised as a provisions will include both direct and indirect costs
of restructuring
b.
The Board of Directors have decided to carry out the restructuring, although this
has not yet been announced
c.
The company has sold an option to purchase that part of their business to an
investor outside of the company
d.
All of the above
e.
None of the above
5. IAS 37 also applies to lease accounting>
a. True
36
Vì ifrs 16 k có trường hợp hợp đồng thuê là onerous contract nên IAS 37 có thể treatment
trong trường hợp này
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b. False
6. Trevelyan & Co. is being sued for damages. When preparing its 2012 financial
statements the directors took the view that the likelihood of any payments having to be
made to the claimant was remote.
In preparing the 2013 financial statements their view was that it was possible that such
payments would have to be made, and in preparing the 2014 statements their view was
that such payments were probable.
For the 2015 statements there was virtual certainty that the payments would have to be
made. The payments were actually made in 2016.
In which financial statements must provision for the payments first be made?
a.
2012
b.
2015
c.
2013
d.
2016
e.
2014
7. An event which has occurred after balance date will not ever be taken into account in
post-balance date adjustments
a. True
b. False
8. IAS 10 defines the time period in which events after balance date need to be considered
as:
a.
Those events occurring before the end of the audit of the results
b. Those events occurring up until midnight before the day of the Annual General
Meeting
c.
Those events occurring within six months of balance date
d.
Those events occurring before the Directors have authorised the financial report
e.
Those events occurring within one month of balance date
9. When an event is determined to be an adjusting event, the adjustment of the amounts
involved may impact on any or all components within the financial report.>
a. True
b. False
10. What is the correct accounting treatment for a dividend which has been declared after
balance date and not paid before the financial statements are authorised for issue?
a.
It is recognised directly as a debit to equity
b.
It is an unrealised gain as part of comprehensive income
c.
It is a component (expense) of comprehensive income
d.
It is not recognised in the balance sheet and only disclosed in a Note (if material)
Para
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UPDATES:
IAS 10
1. An announcement of a major restructuring of a company is an adjusting event.
A. True
B. False
2. Events that provide evidence of conditions that existed at the end of the reporting
period are called…
A. Adjusting events
B. Non-adjusting events
3. A customer issues legal proceedings against Super Limited shortly after the end of its
financial reporting period. Is this an adjusting event?
A. Yes
B. No
4. Which of the following is an example of a non-adjusting event?
A. Sale of inventory for less than its carrying value shortly after the reporting period
B. Amounts received in respect of an insurance claim being negotiated at the
period end
C. Destruction of a machine by fire after the reporting period
D. Bankruptcy of a major customer with a balance owing at the period end
5. The liquidation of a major customer after the period end is an adjusting event.
A. True
Dr Irre
Cr
B. False
6. Mercury Limited is preparing the financial statements for the period to 31
December 20x3. On 7 January 20x4, its sales rep crashed his company car, writing
it off. Unfortunately the vehicle was uninsured at the time of the crash.
Mercury’s CFO would like to write off the value of the vehicle in the financial statements
to 31 December 20x3. May he do this?
A. Yes
B. No
7. Events that arise after the financial statements are published are…
A. Adjusting events
B. Non-adjusting events
8. Evidence of a permanent deterioration of property value prior to year-end is a nonadjusting event.
A. True
B. False
38
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IAS 37 PROVISION AND EVENTS AFTER THE REPORTING
PERIOD
1. International standard IAS37 defines a provision as:
a. A liability which is legally enforceable
b. A liability which is not legally enforceable
c. A liability of uncertain timing or amount
d. A reduction in the carrying amount of an asset
2. In order that a provision should be recognised in an entity's financial statements, it is necessary
that:
a. The entity has a present obligation
b. The entity has a legally enforceable obligation
c. The entity has a constructive obligation
d. It is possible that an outflow of economic benefits will be required
3. A past event is an obligating event only if it gives rise to a legally enforceable obligation. True or
False?
a. True
b. False
4. The amount of a provision should be the "best estimate" of the expenditure required to settle
the obligation concerned. This estimate:
a. Should always be discounted to present value
b. Should not be adjusted to reflect future events that may affect the amount of the
required expenditure, whether or not those events are likely to occur
c. Must always be made on the basis of advice from independent experts
d. Should be the amount that would rationally be paid to settle or transfer the obligation
5. If a provision relates to a large population of items, the amount of the provision should be
calculated as:
a. The maximum expenditure that could possibly be required to settle the obligation
b. The expected value of the expenditure that will be required to settle the obligation
c. The minimum expenditure that could possibly be required to settle the obligation
d. The present value of the maximum expenditure that could possibly be required to settle
the obligation
6. Should a provision be recognised in relation to:
(a) future operating losses?
(b) onerous contracts?
a. (a) No (b) Yes
b. (a) Yes (b) No
c. (a) Yes (b) Yes
d. (a) No (b) No
7. In general terms, a contingent liability is a possible obligation that depends upon the outcome of
an uncertain future event that is not within the control of the entity concerned. True or False?
a. True
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b. False
8. Contingent liabilities are:
a. Always recognised in the statement of financial position
b. Always disclosed in the notes to the financial statements
c. Recognised in the statement of financial position unless the possibility of an outflow of
economic benefits is remote
d. Disclosed in the notes unless the possibility of an outflow of economic benefits is
remote
9. Contingent assets are:
a. Always recognised in the statement of financial position
b. Always disclosed in the notes to the financial statements
c. Disclosed in the notes if an inflow of economic benefits is probable
d. Disclosed in the notes unless an inflow of economic benefits is only remotely possible
10. International standard IAS10 requires that financial statements should be adjusted to take
account of any events occurring between the end of the reporting period and the date when the
financial statements are authorised for issue. True or False?
a. True
b. False
Chỉ có adjusting events mới điều chỉnh
UPDATES
1. Provisions are reported as part of trade and other payables in the financial statements.
A. True
B. False
2. Which of the following does not create a constructive obligation under IAS 37?
A. Established pattern of past practice
B. Legislation
C. Published policies
D. A current statement
3. A provision for warranties should be made on the class of claims as a whole.
A. True
B. False
4. A contingent asset is one where
obligation will arise from past events, which
will be confirmed by events in the future.
A. a possible
B. a probable
C. an uncertain
D. a definite
5. When another party will reimburse some or all of the expenditure required to settle a
provision, the reimbursement should be recognised…
A. as a deduction against the provision
B. as a separate line in equity
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định
C. as a separate asset
D. as a note to the financial statements
6. An entity may avoid disclosure requirements if they expect it would
seriously prejudice the position of the entity in dispute with other parties.
tranh
A. True
B. False
7. If an entity has a warranty obligation and expects, with more than 50% probability, it
will result in some payments from the entity, a provision should be made for:
A. 50% of the expected amount of the payments
B. The expected amount of the payments
C. An amount agreed upon by management
D. The entire amount of the sales in the period
8. Under IAS 37 a ‘probable transfer of resources’ when referring to a
provision means…
A. Possible
B. More likely than not
C. Almost certain
D. Definite
9. Pools Plc. wishes to create a provision for future operating losses. Is this
allowed under IAS 37?
A. Yes
B. No
10. Which of the following is not a disclosure requirement for a contingent liability?
A. Exact timing of outflow
B. Indication of uncertainties relating to the amount
C. Estimated financial effect
D. Possibility of any reimbursement
11. Podge Limited created a provision for $100,000 against a certain event which
never materialised. During the financial year, another event costing $80,000
occurred.
May Podge Limited use part of the $100,00 provision against the new event?
A. Yes
B. No
12. A provision is the same as an accrual.
A. True
B. False
13. When a restructuring involves the sale of an operation, at what point may an
obligation arise under IAS 37?
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A. When business is marketed for sale
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B. When a preferred buyer is located
C. When an expression of interest is filed
Para
D. When a binding sale agreement is executed
14. The amount of a provision shall be the
of the expenditures expected to be
required to settle the obligation.
A. Market value
B. Fair value
C. Cost value
D. Present value sửa chữa lớn tài
15. The cost of major overhauls of assets such as ships may be provisioned over a
number of years prior to the overhaul.
A. True
B. False
16. An entity may recognise a present obligation under an onerous contract as a provision.
A. True
B. False
17. Gains from the expected disposal of assets may be taken into account when
measuring a provision.
A. True
B. False Para
18. Where is a contingent liability contained in the financial statements?
A. As a non-current liability
B. A current liability
C. In equity
D. A note to the financial statements
19. A provision is a liability….
A. of uncertain timing but certain amount
B. of uncertain timing or amount
C. of certain timing but uncertain amount
D. none of these
20. When another party will reimburse some or all of the expenditure required to settle a
provision, the reimbursement should only be recognised when its receipt is…
A. Probable
B. Virtually certain
C. Possible
D. More probable than not
21. Which of the following is a restructuring cost under IAS 37?
A. Relocation of staff
B. Marketing
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C. Investment in new distribution networks
D. Relocation of business activities from one region to another
22. Contingent assets should be recognised in the financial statements when they are…
A. Possible
B. Probable
C. Definite
D. Received
23. Which of the following is not a restructuring cost?
A. Fundamental change in operations
B. Retraining staff
C. Sale of a line of business
D. Change in management structure
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IAS 2 and IAS 11
1. The definition of "inventories" given by international standard IAS2 states that items qualify as
inventories only if they are assets held for sale in the ordinary course of business or assets in the
process of production for such sale. True or False?
a. True
b. False
2. Which of the following items cannot be included in the cost of inventories?
a. Irrecoverable import duties payable on the acquisition of inventories
b. Fixed production overheads
c. The cost of abnormal wastage of materials and labour
d. Variable production overheads
3. Which of the following items should be included in the cost of inventories?
a. Conversion costs
b. The cost of abnormal wastage of materials and labour
c. Selling costs
d. The cost of storing finished goods
4. The cost formulas permitted by IAS2 are:
a. FIFO and LIFO
b. FIFO and AVCO
c. LIFO and AVCO
d. FIFO, LIFO and AVCO
5. The FIFO cost formula assumes that:
a. The inventory items which are sold or consumed are those acquired most recently
b. The inventory items which are sold or consumed are those acquired longest ago
c. The inventory items which are sold or consumed are a mixture of those acquired in the
last 12 months
d. Newer inventory items are sold or consumed before older inventory items
6. The net realisable value of inventories is defined by IAS2 as:
a. Selling price
b. Cost price
c. Selling price less costs of completion
d. Selling price less costs of completion and selling costs
7. On 31 December 2011, a company has partly-completed inventory with a cost to date of
£26,300. It is expected that further costs of £8,900 will be incurred in order to complete the
inventory. It will then be sold for £47,500. Selling costs will be £2,000.
The cost and the net realisable value of this inventory at 31 December 2011 are:
a. £26,300 and £36,600
b. £26,300 and £38,600
c. £35,200 and £45,500
d. £35,200 and £47,500
8. The definition of "construction contract" given by international standard IAS11 includes
contracts for the destruction of assets. True or False?
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a. True
b. False
9. The stage of completion of a construction contract may be determined by:
a. Comparing the costs incurred for the work performed to date with the estimated total
costs
b. Carrying out a survey of the work performed to date
c. Considering the physical proportion of the contract work completed
d. Any of the above
10. The expected profits of a construction contract are spread over the period of the contract, but
any expected losses are accounted for in full as soon as they become probable. True or False?
a. True
b. False
PART 2:
IAS 2
1. In order to make a profit, sales revenue should match the costs of goods sold or services
rendered plus a margin sufficient to cover all other costs including interest costs, administrative
expenses and depreciation.
a. True
b. False
2. Inventories in North America are termed stocks in the UK.
a. True
b. False
3. An entity manufactures in its factory parts, which are then transported to a number of
distribution centres. The following costs relate to the manufacture of the parts:
1) Fixed production overheads, apportioned on a reasonable basis
2) Costs of transporting the parts from the factory to the distribution centres
3) Costs of returning the transportation vehicles from the distribution centres to the factory
4) The ongoing costs of storing the parts at the distribution centres prior to their use
Which of the above costs should be included in the cost of parts at the distribution centres under IAS 2?
a. 2 and 4
b. 1 and 4
c. 1 and 2
d. 2 and 3
4. In addition to the FIFO method of computing the cost of inventory, IAS 2 also allows:
a. Neither the LIFO method nor the weighted average cost method
b. The weighted average cost method and the specific identification method
c. The LIFO method and the specific identification method
d. Both the LIFO method and the weighted average cost method
5. An entity purchases raw materials from an overseas supplier. The following costs are relevant to
the purchase:
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1) Customs duties incurred in importing the product into the country
2) Costs of transporting the product from the overseas supplier to the entity
3) Exchange losses incurred when settling the liability to pay for the materials
Which of these costs can validly be regarded as part of the cost of the inventory?
a. 2 and 3
b. 1 and 2
c. 1 and 3
d. All of them
e. None of them
6. The following are costs that might be deducted from the selling price of inventories in order to
compute their NRV:
1) Trade discounts
2) Discounts for prompt payment
3) Costs of conversion of work in progress
Which of the above costs are deductible under the principles of IAS 2?
7.
8.
9.
10.
a. 1 and 2
b. 2 and 3
c. 1 and 3
d. All of them
e. None of them
An error that results in the closing inventory being understated will have no effect on the gross
profit of the following period.
a. True
b. False
Which of the following inventory valuation methods are companies permitted to use?
1) FIFO
2) LIFO
3) Weighted average cost
4) Base stock
a. 2 and 4
b. 2 and 3
c. 1 and 3
d. 1 and 4
A publisher of a series of cook books includes in the cost of the books the charges from a panel
of Testers for each recipe. These should be treated as part of the cost of each book.
a. True
b. False
What does NRV mean?
a. Net Replacement Value
b. Non-Revised Value
c. Non-Referenced Value
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11.
12.
13.
14.
d. Net Realisable Value
Which of the following are estimates which usually have to be made in order to determine NRV?
1) Estimated selling costs
2) Expected costs to complete the manufacturing process
3) Expected selling price
a. 2 and 3
b. 1, 2 and 3
c. 1 and 2
d. 1 and 3
Estimates of net realisable value should take into account changing prices after the reporting
date to the extent these confirm conditions existing within the reporting period.
a. True
b. False
Estimates of net realisable value should not take into account the specific intended use of the
inventory when estimating selling price, e.g an order for a particular customer.
a. True
b. False
The amount of any write down of inventories to NRV may be recognised in the Statement of
Comprehensive Income as an extraordinary line item, provided the entity is consistent in its
treatment of such losses.
a. True
b. False
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IAS 16 Property, plant and equipment
1. Which of the following items qualifies as property, plant and equipment?
a. A machine bought for resale to a customer
b. A machine bought for use during a single accounting period
c. A machine bought for use in more than one accounting period
d. Computer software bought for use in more than one accounting period
2. The "carrying amount" of an item of property, plant and equipment generally refers to:
a. The cost of the item
b. The replacement cost of the item
c. The depreciable amount of the item
d. The amount at which the item is recognised in the financial statements
3. A company pays £40,000 to replace a major component of a factory machine. The faulty
component that is replaced is sold for £2,000.
The carrying amount of the machine just before this replacement occurs is £450,000, of which
£10,000 relates to the faulty component that is being replaced.
The revised carrying amount of the machine after the replacement occurs and the profit or loss
on disposal of the faulty component are:
a. Carrying amount £490,000, Loss £8,000
b. Carrying amount £480,000, Loss £8,000
c. Carrying amount £480,000, Loss £10,000
d. Carrying amount £490,000, Profit £2,000
4. Which of the following would not be included in the cost of an item of property, plant and
equipment?
a. Delivery and installation charges
b. Testing costs
c. Refundable value added tax
d. Site preparation costs
5. On 31 December 2011, a company acquires land for £500,000. The land is revalued at £530,000
on 31 December 2012 and £460,000 on 31 December 2013.
The company prepares financial statements to 31 December each year and uses the revaluation
model in relation to land.
The correct accounting treatment of each revaluation in the statement of comprehensive
income is as follows:
a. 2012Income £30,000
2013Expense £70,000
b. 2012Other comprehensive income £30,000
Dr Land 30000
Cr Revaluation Surplus (OCI)
30000
Dr OCI 30000
Dr Loss 40000
2013Expense £70,000
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c. 2012Other comprehensive income £30,000
2013Negative other comprehensive income £70,000
d. 2012Other comprehensive income £30,000
2013Negative other comprehensive income £30,000
Expense £40,000
6. Depreciation is defined as the fall in value of an asset during an accounting period. True or
False?
a. True
b. False
7. On 1 January 2011, a company which prepares financial statements to 31 December each year
buys an item of equipment for £20,000. Useful life is estimated to be six years and residual value
is expected to be approximately £1,500.
The company uses the diminishing balance method of depreciation at a rate of 35% per annum.
To the nearest pound, the depreciation of this item for the year to 31 December 2012 would be:
a. £3,083
b. £7,000
c. £4,550
d. £4,209
8. Borrowing costs that are directly attributable to the acquisition of a qualifying asset must be
capitalised as part of the cost of that asset. True or False?
a. True
b. False
9. A company has the following general borrowings outstanding throughout the whole of an
accounting year:
 6.5% Bank loan of £400,000
 8% Bank loan of £800,000
If a qualifying asset costing £50,000 is funded out of these general borrowings, the capitalisation
rate that should be used is:
a. 7.25%
Interest expense =
b. 6.5%
90000 Total loan =
c. 8%
d. 7.5%
10. If investment property is measured using the fair value model, a gain arising from a change in
the fair value of an investment property must be:
a. Recognised in the calculation of profit or loss
b. Recognised as other comprehensive income
c. Credited to a revaluation reserve
d. Ignored
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11. Management are required to make a number of choices of accounting policies with regard to
Property, Plant, and Equipment. Which of the following are the most relevant policy choices
both during the construction of a specialised asset on site and after its first full year of use?
1. Determining which transportation and import duty costs should be capitalised as
part of the cost of the asset during its construction
2. The cost of the parts of Board meetings dedicated to decisions regarding the asset
construction
3. Method of depreciation and useful life of the asset
4. The policy for inventory measurement
a. 1 and 4
b. 1 and 2
c. 3 and 4
d. 1 and 3
e. 2 and 3
f. 2 and 4
12. A higher residual value results in lower profit.
a. True
Đề bài k đề cập depre method nào, chỉ có straightline method mới liên quan residual
b. False
13. Which of the following types of expenditure is not permitted to be capitalised in respect of an
asset that is already in use?
a. Expenditure that makes the asset operate more efficiently
b. Expenditure that maintains the current operating capacity of the asset
c. Expenditure that increases the estimated useful economic life of the asset
d. Expenditure that increases the annual output of the asset
14. Salvage value is the same as residual value.
Salvage value = residual value = scrap
a. True
b. False
15. When using a diminishing value method of calculating the depreciation charge each year, the
depreciable amount is determined by deducting residual value from cost.
a. True
b. False
16. An asset was purchased for $1m on 1 January 2011. At the date of purchase the asset had an
estimated useful economic life of 5 years and an estimated residual value of $100,000. At the
end of the year following purchase the residual value estimate was revised to $120,000. What is
the appropriate depreciation charge for the year ended 31 December 2011 in respect of this
asset?
a. $200,000
b. $180,000
c. $156,000
d. $176,000
17. When the residual value of an asset is decreased, there will be lower profits because of an
increase in the depreciation charge.
a. True
b. False
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18. A company is assessing the impact on net profit and return on equity (earnings/equity) when
the useful life of an asset is increased.
1) There will be higher profits because of a decrease in the depreciation charge
2) There will be higher return on equity because of a bigger percentage increase in profit
versus the equity increase
3) There will be lower return on equity because of a lower percentage increase in profit
versus the asset increase.
Which of the statements are true?
a. None of the above
b. 1 and 3
c. All of the above
d. 1 and 2
19. After the initial recognition, an investment property must be measured at fair value.
a. True
After: đo lường theo 2 model: FV model & Cost model -> "must be" là
b. False
20. Choosing a high ....... has the opposite effect of choosing a........., all other things being equal.
a. rate of diminishing value/high depreciable amount
b. discount rate/high tax rate
c. residual value/short useful life
d. None of the above
UPDATES:
1. Under IAS 16, if an asset is idle…
A. Depreciation is paused
B. Depreciation for the entire period does not apply
C. Depreciation continues
D. Depreciation is ignored
2. Which of the following is not a component of cost of an asset?
A. Purchase price
B. Import duties
C. Refundable sales tax
D. Estimate of compulsory future dismantling costs
3. Which of these is an allowable cost of an asset under IAS 16?
A. Professional fees
B. General overheads
C. Initial operating losses
D. Administration expenses
4. If one large asset has a number of individual components with different useful lives,
how should this be depreciated?
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A. Treat as one asset
B. Break down into different parts
C. Expense it all
D. Treat as one asset, but disclose in the notes to the financial statements
5. What is the net amount an entity expects to obtain for an asset at the end of its
useful life?
A. Residual value
B. Depreciated value
C. Present value
D. Fair value
6. When an asset is sold or disposed of, where is the gain or loss recognised?
A. Asset disposal account
B. Profit and loss
C. Revaluation reserve
D. Depreciation
7. Under IAS 16, how often should the useful life of an asset be reviewed?
A. At least at each financial year end
B. Every six months
C. At management’s discretion
D. Never
8. Which of the following is not an asset that falls under the scope of IAS 16?
A. Tangible assets
B. Assets held for the production or supply of goods or services
C. Assets held for sale in the normal course of business
D. Assets expected to be used for more than one period
9. If an asset increases in value, the increase is noted as…
A. An increase in net profit in the SOCI
B. An increase in revaluation surplus in the SOFP and other comprehensive
income in the SOCI
C. An increase in retained earnings in SOFP
D. An increase in “other profit” in SOCI
10. When an item of property, plant and equipment is revalued, what should be revalued?
A. A selection of assets decided by management
B. The whole class of assets to which it belongs
C. The individual asset
D. A selection of assets picked at random
11. A change in depreciation method is a…
A. Change in accounting policy
B. Change in accounting estimate
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C. Change in accounting method
D. Change in accounting standard
12. What is an impairment loss?
A. The amount by which the carrying amount of an asset exceeds the
recoverable amount
B. The amount by which the market value of an asset exceeds the net present value
C. The difference between the fair value of an asset and the net realisable value of the
asset
D. The amount by which the carrying amount of an asset exceeds the book value
13. A company purchases land with an office building. The building has a useful life of
20 years. How should the land be depreciated?
A. Depreciate over 20 years
B. Depreciate over useful life of the land
C. Don’t depreciate the land
D. None of these
14. The purpose of depreciation is so an asset can be replaced at the end of its useful life.
A. True
B. False
15. If an asset decreases in value, the decrease is noted as…
A. An expense in the SOCI
B. A decrease in the “revaluation surplus” in the SOFP
C. A decrease in retained earnings in the SOFP
D. As “valuation deficit” in the SOFP
16. Under IAS 16, which of the following is not allowable as a directly attributable cost
of a machine?
A. Initial test batches
B. Site preparation
C. Delivery
D. Estimated dismantling costs
17. What is the amount an asset could achieve if sold between knowledgeable, willing
parties in an arms length transaction?
A. Current value
B. Net present value
C. Written down value
D. Fair value
18. Which of the following is covered by IAS 16 – Property, Plant and Equipment?
A. Assets held for sale
B. Biological assets related to agricultural activity
C. Exploration assets
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D. Office buildings
E. All of these
19. hat is the amount an asset is recognised at in the SOFP less any
accumulated depreciation or impairment losses?
A. Carrying amount
B. Residual value
C. Impairment amount
D. Fair value
20. When it is
that future economic benefits associated with an asset will flow to
the entity, and the costs can be
measured, it should be recognised as an asset.
A. Possible, reasonably
B. Possible, reliably
C. Probable, reliably
D. Probable, reasonably
21. Under IAS 16, which two subsequent accounting treatments are allowed
subsequently to initial recognition?
A. Cost model and present value model
B. Cost model and revaluation model
C. Fair value model and revaluation model
D. Fair value model and cost model
22. How should an asset be initially recognised in the financial statements?
A. Measure at market value
B. Measure at cost
C. Measure at net realisable value
D. Measure at fair value
23. Under IAS 16, if assets are exchanged in an arms length, commercial
transaction, their value will be measured at:
A. Written down value
Para
B. Fair value
C. Carrying value
D. Net present value
24. Which of the following disclosures is not required when an asset is revalued?
A. Name of valuer
B. Basis used
C. Effective date of revaluation
D. Revaluation surplus
E. Whether valuer was independent
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IAS 38 – INTANGIBLES
1. Goodwill does not fall within the IAS38 definition of an intangible asset because:
a. It is a monetary asset
b. It is not separable
c. It may not generate future economic benefits
d. None of the above
2. Which of the following would not be included in the cost of a separately acquired
intangible asset?
a. Non-refundable value added tax
b. Employee costs incurred in preparing the asset for its intended use
c. Costs incurred in using the asset
d. Testing costs
3. How should research and development expenditure be dealt with in an entity's financial
statements?
a. Research and development expenditure should always be written off as an
expense
b. Research and development expenditure should always be capitalised as an
intangible asset
c. Research expenditure should always be written off as an expense but
development expenditure should always be capitalised as an intangible asset
d. Research expenditure should always be written off as an expense but
development expenditure should be capitalised as an intangible asset if it
satisfies certain conditions
không bao giờ phát sinh vào giá
4. Expenditure on advertising and promotion never gives rise to the acquisition of an
intangible asset. True or False?
a. True
Para 69: Advertising ->
b. False
5. The revaluation model cannot be used for the measurement of an intangible asset
unless:
a. The asset is revalued every year
b. The fair value of the asset is determined by a professional valuer
c. There is an active market in that type of asset
d. The revaluation model is also used for tangible assets
6. On 31 December 2011, a company acquires an intangible asset for £50,000. The asset is
revalued at £42,000 on 31 December 2012 and £57,000 on 31 December 2013.
The company prepares financial statements to 31 December each year and uses the
revaluation model in relation to this class of intangible assets.
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The correct accounting treatment of each revaluation in the statement of
comprehensive income is as follows:
a. 2012Expense £8,000
2013Income £8,000
Other comprehensive income £7,000
Dr Loss on revaluation
8000 Cr Intan
Dr Intan 15000
Cr Gain 8000
Cr Revaluation Surplus 7000
b. 2012Expense £8,000
2013Income £15,000
c. 2012Expense £8,000
2013Other comprehensive income £15,000
d. 2012Negative other comprehensive income £8,000
2013Other comprehensive income £15,000
7. The amortisation method used in relation to an intangible asset should be chosen so as
to:
a. Write off the asset as soon as possible
Paragraph
b. Reflect the usage pattern of the asset
c. Evenly spread the cost of the asset over its useful life
d. Maximise the amortisation charge in the early years of the asset's useful life
8. International standard IFRS3 states that goodwill acquired in a business combination is:
a. An asset which arises from the acquired entity's good reputation
b. An asset which arises from the acquired entity's strong customer relationships
c. An asset which arises from assets acquired in the business combination that are
individually identified
d. An asset which arises from assets acquired in the business combination that are
not individually identified
9. Negative goodwill arising on a business combination should be shown as a negative
asset in the statement of financial position. True or False?
a. True
b. False
10. Goodwill acquired in a business combination should subsequently be measured:
a. At cost
b. At cost less accumulated amortisation
c. At cost less accumulated impairment losses
d. At cost less accumulated amortisation and less accumulated impairment losses
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11. An intangible asset with an indefinite useful life is nevertheless required to be amortised
over the most probable useful life.
a. True
b. False
12. IAS 38 - Intangible Assets - includes the following examples of research and
development expenditure:
1.
Activities aimed at obtaining new knowledge
2.
The design of tools, jigs, moulds and dies involving new technology
3.
The design, construction and testing of a chosen alternative for new or improved
materials, devices, products, processes, systems or services
4.
The search for alternatives for materials, devices, products, processes, systems and
services
Which of these items is development expenditure?
a. 2 and 4
b. 2 and 3
Para
c. None of them
d. 1 and 4
e. All of them
13. Amortisation methods for intangible assets do not permit the Units of Production
method.
a. True
3 method: Straight-line method, diminishing balance, units of production
b. False
14. Amortisation and depreciation reflect similar accounting practices, and are more or less
different names for the same thing.
a. True
b. False
15. According to IAS 38 - Intangible Assets, which accounting treatment is specified for
amortising (or writing down) goodwill?
a. Not amortising goodwill, but reviewing it annually for impairment and expensing
any impairment loss
b. Amortising goodwill over its expected life
c. Writing off the goodwill directly to reserves in the year of acquisition
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d. Keeping goodwill in the balance sheet unchanged (i.e. no amortisation and no
impairment test)
16. If the pattern in which the asset's future economic benefits are expected to be
consumed by the entity cannot be determined, then amortisation of the intangible asset
is required to be made on a straight-line basis.
a. True
Para
b. False
17. The competitive advantage in today's economy lies mostly within the areas of
unrecognised intangible competencies or potential capabilities. That these cannot be
measured does not impact on the utility of historic cost-based financial reports.
a. True
Lợi thế cạnh tranh trong thị trường kinh tế ngày nay hầu như trong các lĩnh vực vô hình không
ghi
nhận hoặc khả năng tiềm ẩn. Việc không thể đo lường điều này sẽ không làm ảnh hưởng
b. False
đến sự tiện ích của BCTC dựa trên giá gồc
18. What factor might a company take into account when attempting to enhance the
representational faithfulness of a reported website cost.
a. The costs charged by an artistic contractor for an animated logo, not yet paid to
the contractor
b. The net present value of its residual value
c. The possibility of increased revenues
d. None of these listed factors
e. All of these listed factors
UPDATES
1. Big Limited has spent $100,000 developing a software product, which is obsolete
before it reaches the market.
May Big Limited recognise the $100,000 expense as an intangible asset?
A. Yes
B. No
2. What is the initial recognition measurement of an intangible asset?
A. Cost
B. Fair value
C. Net present value
D. Market value
3. A company may internally generate an intangible asset.
A. True
B. False
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4. If one intangible asset is exchanged for another, the cost of the intangible is measured
at….
A. Book value
B. Fair value
C. Present value
D. Estimated value
bắt
5. When does amortisation of an intangible asset commence?
A. When the asset is substantially complete
B. When the asset is available for use
C. When management determine
D. At the start of the accounting period
6. When an intangible asset is sold, the gain or loss is recognised…
A. in Equity
B. in the Profit or
L
C. in the Statement of Financial Position
D. in the Statement of Cash Flows
7. Intangible assets with an indefinite useful life should not be amortised.
A. True
B. False
8. Which of the following measurement models is not permitted for the
subsequent measurement of intangible assets under IAS 38?
A. Cost model
B. Capital Assets pricing model
C. Revaluation model
D. None of these
9. Which of the following is an intangible asset under IAS 38?
A. Patent rights
B. Market share
C. Customer loyalty
D. Technical knowledge training
10. Jumbo Limited wishes to record staff training and education costs as an intangible
asset, as this gives the company’s employees’ technical knowledge which is a
competitive advantage.
May Jumbo Limited record the training costs as an intangible asset?
A. Yes
B. No
11. Which of the following is not an example of an intangible asset?
A. Cash in bank
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B. Customer lists
C. Trademarks
D. Software patents
12. What are intangible assets?
A. Monetary assets without physical substance
B. Monetary assets with physical substance
C. Non-monetary assets without physical substance
D. Non-monetary assets with physical substance
13. Which of the following internally generated items may not be recognised as
intangible assets?
A. Mastheads
B. Customer lists
C. Brands
PARA
D. Publishing Titles
E. All of these
14. An entity may classify an internal project’s cost as either research or development if it
cannot distinguish between each phase.
A. True
B. False
15. If an asset is revalued, and the revised valuation is less than its current
valuation, where will the change be noted?
A. Statement of Financial Position under “Decrease in asset value”
Dr Loss on
B. Income Statement as an expense
revaluation Cr
C. Statement of Financial Position under “Revaluation deficit”
D. Equity under “Revaluation deficit”
16. Research costs may be recorded as an intangible asset.
A. True
B. False
17. How often should the useful life of an intangible asset with a finite useful life be
reviewed?
A. Every six months
B. Every year
C. Every five years
D. At management’s discretion
18. An intangible asset with a finite useful life should be amortised over…
A. Its expected useful life
B. A period determined by management
C. Five years
D. No foreseeable limit
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19. If an intangible asset is revalued upwards, the increase in value should be credited…
A. to the Income Statement under “Other Income”
Dr
B. to the Income Statement under “Revaluation of Assets”
Intangible
Cr Gain
C. to the Statement of Financial Position under “Revaluation Surplus”
D. to Equity under “Revaluation Surplus”
20. Which of the following is not a requirement to capitalise development costs
under IAS 38 – Intangible Assets?
A. It must be technically feasible
B. The entity intends to sell the completed intangible asset
C. The entity can demonstrate how the asset will generate future economic benefits
D. The commercial feasibility for the asset may be uncertain
21. An entity is permitted to use the revaluation model for the initial recognition of
an intangible asset.
A. True
B. False
22. Where is the amortisation of an intangible asset recognised?
A. Profit or Loss
B. Equity
C. Statement of Financial Position
D. Statement of Cash Flows
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IAS 8 Accounting policies accounting estimates and errors
1. The term "accounting policies" refers to:
a. The measurement bases used by an entity
b. The accounting concepts and conventions adopted by an entity
c. The accounting principles applied by an entity
d. All of the above
2. If an accounting standard applies specifically to a certain item, an entity's accounting policy in
relation to that item must normally be determined by applying the relevant standard. True or
False?
a. True
3.
4.
5.
6.
7.
8.
b. False
An entity may change one of its accounting policies:
a. Whenever it wishes to do so
b. If this would result in the provision of reliable and more relevant information
c. If this would reduce the cost of preparing the financial statements
d. Never
A change in accounting policy which does not result from the initial application of an
international standard must normally be accounted for:
a. Retrospectively
b. Prospectively
c. Either retrospectively or prospectively
d. Prospectively unless it is impracticable to do so
For all changes in accounting policy, the entity concerned must disclose:
a. The title of the international standard that has caused the change to occur
b. The reasons which suggest that the change will provide reliable and more relevant
information
c. The nature of the change
d. The fact that the change has been accounted for in accordance with transitional
provisions specified in the applicable standard
A change in an accounting estimate should be accounted for:
a. Retrospectively
Thay đổi "Accounting estimate" k cần hồi
b. Prospectively
c. Either retrospectively or prospectively
d. Retrospectively unless it is impracticable to do so
The use of estimates always undermines the reliability of financial statements. True or False?
undermines =
a. True
b. False
Prior period errors could be caused by:
a. Fraud
b. Mistakes in applying accounting policies
c. Mathematical errors
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9.
10.
11.
12.
13.
14.
15.
d. Any of the above
A material prior period error should be corrected:
a. Retrospectively
b. Prospectively
c. Either retrospectively or prospectively
d. Prospectively unless it is impracticable to do so
An entity's financial statements provide comparative figures for the previous five accounting
periods. If the entity accounts for an item retrospectively, then:
a. Comparative figures for the previous five accounting periods are not restated in any
circumstances
b. Comparative figures for all of the previous five accounting periods may need to be
restated
c. Comparative figures are restated for the prior accounting period but never for the four
previous accounting periods
d. The entity may choose whether or not to restate comparative figures
What is a characteristic of comparative information on adoption of IFRS?
a. It is only required for balance sheet items
b. It is part of management discussion and analysis
c. It is too costly to prepare
d. It is often offered on the basis of five years of data
An entity needs to adjust an error in an earlier estimate for employee health care in a prior
financial statement. Which of these is true?
a. The estimate is to take into account added costs from a later epidemic
b. As it is only an estimate it does not need to be adjusted
c. Actual costs which occurred six months after balance date can be used instead of the
estimate
d. The estimate is not to take into account hindsight about added costs from a later
epidemic
What do retrospective applications relate to?
a. Changes in accruals policies only
b. Changes in any category of accounting policies
c. Comprehensive income adjustments only
d. Earnings management
What does retrospective restatement relate to?
a. Adjustments for dividends approved at the Annual General Meeting
b. The correction of material prior period errors
c. Adjustments to take account of doubtful debts which turned bad after balance date
d. SEC rulings regarding restatements
One circumstance which might give rise to a prior period adjustment being impractical is when?
a. The adjustment will result in lower reported earnings
b. There has been a change of auditors
c. The financial report has been authorised for issue
d. The necessary information cannot be recreated to make the adjustment
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16. In making an adjustment to an estimate in a prior period which resulted from a change in an
accounting policy......
a. The new estimate is required to be valued with a net present value calculation to reflect
current values
b. The new estimate has to reflect the circumstances when the original transaction
occurred
c. With the benefit of more recent knowledge, there is a higher probability threshold in
the recognition criteria
d. The new estimate has to also reflect the circumstances which have arisen since the
original transaction occurred
17. Many items in a financial report cannot be measured with precision, but can only be estimated.
This fact reflects the need for the financial statements to...?
a. Include intangible assets
b. Be based on the lower of cost or market asset values
c. Be prepared on a going concern basis
d. Be based on the latest and most reliable information
PARA
18. Which of the following is not an example of an estimate in current assets or contra assets in a
financial report?
a. Bad debts
b. Cash
c. Depreciation
d. The fair value of a financial asset
19. A change in the measurement basis applied...?
a. Occurs when there is a change in auditor
b. Signals earnings management
c. Is a change in an accounting estimate
d. Is a change in an accounting policy
20. Which of the following standards do not permit any choice between alternative accounting
treatments?
a. IAS 2 - the Rule of lower of cost or market (NRV)
b. IAS 16 Property Plant and Equipment
c. IA 38 Intangible assets
d. IAS 1 Presentation of Financial Statements
UPDATES:
IAS 8
1. When an IFRS specifically applies to a transaction, then accounting policies should
be determined:
A. By ignoring the IFRS
B. By applying the IFRS
C. By using the industry practice for the transaction
D. None of these
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2. Which of the following is not a change in accounting policy?
A. Change in the method of depreciation
B. Change in the method of valuation of inventory
C. Accounting for a transaction that did not previously occur
D. Change in the method of revenue recognition
E. Change in the cost formula of valuing inventory
3. When a change in accounting policy is applied retrospectively then the change shall
be…
A. noted in the income statement of the current reporting period
B. adjusted in equity
C. noted in the income statement of the previous reporting period
D. disclosed in the notes to the financial statements without making adjustments
in the financial statements
4. Changes in accounting estimates are applied retrospectively.
A. True
B. False
5. When is prospective application of a change in accounting policy allowed?
A. Never
B. When management approve
C. When it’s impracticable to calculate the cumulative effect of the change
D. None of these
6. A change in accounting estimate may include the correction of an accounting error.
A. True
B. False
7. Changes in accounting policies are applied…
A. Prospectively
B. Retrospectively
C. Immediately
D. None of the above
8. A change in accounting policy should be disclosed in subsequent financial statements.
A. True
B. False
9. Which of the following is not an example of an accounting estimate?
A. Bad debts
B. Inventory obsolescence
C. Warranty obligations
D. Fair value of a financial asset
E. Purchase price of a fixed asset
10. When an entity applies an IFRS before its effective date…
A. the effect of the IFRS shall be recognized only in the income statement.
B. the early adoption should be disclosed.
C. the effect of the IFRS should be recognised only in the Statement of Changes
in Equity.
D. the transitional provisions may be ignored.
11. Retrospective application of an accounting policy means:
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A. Application of accounting policies as if that policy had always been applied.
B. Application of accounting policies from the year in which change in accounting
policies happened.
C. Application of accounting policies from the immediately preceding year in
which the change in accounting policies happened.
D. Application of accounting policies without giving effect to the future.
E. Application of accounting policies without giving effect to the prior period items.
12. Which of the following is a change in accounting policy?
A. Adopting a new accounting policy for a kind of transaction that was
never previously dealt with by the entity.
B. Adopting a new accounting policy for a type of transaction that was
previously dealt with by the entity.
C. Adopting a new accounting policy for a transaction, which occurred in the
past, but was not material.
13. In the absence of an IFRS that specifically applies to a transaction, then…
A. The transaction should not be accounted in the financial statements
B. The transaction should be ignored and such a fact should be disclosed in the notes
to the financial statements
C. The auditors of the entity shall decide the suitable accounting policy
D. The management shall use its judgment in determining a suitable
accounting policy
14. A change to the useful life of an asset is a change in accounting policy.
A. True
B. False
15. Material misstatements are considered to be material if:
A. They aggregate to more than 2% of the entity’s turnover for the reporting period.
B. They individually influence the economic decisions made by the users of
financial statements
C. They individually or collectively influence the economic decisions made by
the users of financial statements
D. They aggregate to more than $5,000 during the reporting period.
E. They are misstatements relating statements of inventory (i.e. Raw Materials, Work
in Progress and Finished Goods)
16. The specific principles, bases, conventions, rules and practices applied by an entity in
preparing and presenting financial statements are called…
A. Accounting policies
B. Accounting estimates
C. Accounting principles
D. GAAP
17. An increase in bad debt provisions is a change in accounting estimate.
A. True
B. False
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18. If a revaluation policy is adopted for tangible, non-current assets for the first time, this
is a change in accounting policy.
A. True
PARA
B. False
19. In previous financial statements Mega Supermarkets Ltd valued its inventory on a
weighted average basis. This year it has decided to account for it on a first-in, first-out
(FIFO) basis. How should Mega Supermarkets account for this change?
A. Prospectively as it is a change in estimate
B. Prospectively as it is a change in accounting policy
C. Retrospectively as it is a correction of an error
D. Retrospectively as it is a change in accounting policy
20. When a change in accounting policy is applied retrospectively, then the comparative
information for the prior period shall be…
A. Restated as far as is practicable
B. Restated for ten years or from the year of first financial information whichever is
earlier
C. Restated for five years or from the year of first information whichever is earlier
D. Not to be restated
21. Which of the following is a change in accounting estimate?
A. Misinterpretation of facts
B. Provision for obsolescence
C. Change in inventory valuation method from weighted average to FIFO
D. Oversights
22. A company provides for bad debts at the rate of 2% of the sales. With effect from
2020, it has decided to change it to 3% of sales. The sales for 2019 are $100,000
and for 2020, $200,000. In the financial statements of the year 2020, which of the
following treatment is appropriate?
A. Calculate the retrospective effect of the change and charge it to income statement
of 2020
B. Apply the change prospectively from 2020
C. Calculate the retrospective effect of the change and charge it to the equity
D. Calculate the prospective effect of the change and charge it to equity
23. Which of the following is not a valid reason to change an accounting policy?
A. Change in statute
B. Change in accounting standard
C. Board of directors approve change
D. Management decide it would result in better financial statements
24. Accounting policies across various reporting periods may vary depending on
the needs of the reporting entity.
A. True
B. False
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25. When a public company changes an accounting policy voluntarily, it has to:
A. Treat the effect of the change as an extraordinary item
B. Treat it prospectively and adjust the effect of the change in the current period and
future periods
C. Inform shareholders prior to taking the decision
D. Account for it retrospectively
26. When a change in accounting policy takes place, comparative information should
be restated unless…
A. Management agree not to
B. It is impracticable to do so
C. More than five periods have to be restated
D. It would be difficult to do so
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IAS 36 Impairment of assets
1. An impairment loss is:
a. The amount by which the recoverable amount of an asset exceeds its carrying amount
b. The amount by which the recoverable amount of an asset exceeds its written down
value
c. The amount by which the carrying amount of an asset exceeds its recoverable amount
d. The amount by which the carrying amount of an asset exceeds its market value
2. Which of the following is not an external indication of impairment?
a. An unexpected decline in the asset's market value
b. The asset becoming idle
c. An adverse technological change
d. An adverse change in the market in which the entity operates
3. An asset's recoverable amount is equal to:
a. The lower of the asset's fair value less costs to sell and its value in use
b. The lower of the asset's value in use and its carrying amount
c. The higher of the asset's value in use and its carrying amount
d. The higher of the asset's fair value less costs to sell and its value in use
4. An asset's carrying amount is £25,000. Its fair value less costs to sell is £15,000 and its value in
use is £19,000. There is an impairment loss of:
a. £10,000
b. £6,000
c. £4,000
d. £nil
5. How often should goodwill acquired in a business combination be tested for impairment?
a. Every year
b. Whenever there are external indications of impairment
c. Whenever there are internal indications of impairment
d. Never
6. The IAS36 definition of "corporate assets" specifically excludes goodwill. True or False?
a. True
Definition: PARA
b. False
7. The carrying amount of a CGU is £900,000. This consists of goodwill £250,000 and property,
plant and equipment £650,000. The CGU has a recoverable amount of only £520,000. How is the
impairment loss allocated between the assets of the CGU?
a. Goodwill £130,000, PPE £250,000
b. Goodwill £190,000, PPE £190,000
c. Goodwill £nil, PPE £380,000
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d. Goodwill £250,000, PPE £130,000
8. An asset is expected to generate cash inflows of £20,000 per annum for each of the next three
years and then to be scrapped. These cash inflows will occur at the end of each year. The asset
will generate no cash outflows. Using a discounting rate of 10% per annum, what is the asset's
value in use?
a. £60,000
VIU = 20000 / 1.1 + 20000 / 1.1^2 + 20000 /
b. £54,000
c. £49,720
d. £54,540
9. Which of the following is not an internal indication of the fact that an impairment loss has now
decreased or no longer exists?
a. A favourable change has occurred to the manner in which the asset will be used
b. There is evidence that the economic performance of the asset will be better than
expected
c. The asset's market value has increased significantly
d. A favourable change has occurred to the extent to which the asset will be used
10. A previously-recognised impairment loss relating to goodwill should be reversed if there is
evidence that the loss no longer exists. True or False?
a. True
b. False
PART 2:
12.
11. Fair value less costs to sell is the same as NRV.
a. True
NRV = estimated selling price - cost to sales
Recoverable Amount = higher (FV - costs to sales ) and
b. False
NRV means...?
a. Net Residual Value
b. Net Realisable Value
c. Net Recoverable Value
d. Net Recognition Value
e. None of the above
13. A higher residual value results in lower profit.
a. True
b. False
14. The following statements relate to the implementation of an impairment review under IAS 36:
1) If the fair value less costs to sell of an asset is greater than its carrying value then the
asset has not suffered impairment and it is unnecessary to compute value in use
2) When calculating value in use it is necessary to use a post-tax cost of capital
sử dụng pre-tax
3) If an asset has not previously been revalued then impairment losses are always
recognised in the income statement
Which of the statements are true?
a.
2 and 3
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b. 1 and 3
c. 1 and 2
d. All of them
e. None of them
15. Cash generating units (CGUs) are groups of assets that generate income streams largely
independent of each other.
According to IAS36.6: A cash-generating unit is the smallest identifiable group of assets
a. True
that generates cash inflows that are largely independent of the cash inflows from
b. False
other assets or groups of assets.
16. Some of the key external sources of information which should be used to consider whether or
not an asset has been impaired include:
1) An asset's market value has declined significantly more than would be expected as a result
of the passage of time
2) Market interest rates have increased to the extent these would materially affect the
calculation of the asset's value in use
biến
3) There has been significant volatility in the entity's share price due to currency fluctuations.
4) There have been significant and negative technological events impacting on the firm value.
Which three sources are most relevant to an impairment test on the asset?
17.
18.
19.
20.
a. 1, 2 and 3
b. 1, 2, and 4
c. 2, 3 and 4
d. All of them
e. None of them
When an impairment review of a CGU is required, the review of the CGU will include not only
tangible assets, but also intangible assets and attributed goodwill.
a. True
b. False
Generally an impairment loss is recognised...
a. Any of these are equally likely
b. As an expense in the income statement
c. As a component of accumulated depreciation
d. As a loss in the statement of comprehensive income
e. None of these are permitted
f. Directly in equity
The calculation of value in use will involve making estimates of future cash flows. These
estimates must be based on reasonable assumptions, and a greater weight should be given to
internal rather than external evidence.
a. True
external evidence phải lớn
b. False
Which ones of the following outflows are likely to be included in calculating value in use from
the continued use of an asset?
a. Increased maintenance and operating costs
b. Tax receipts and payments
Maintenance costs được tính vì giúp tài sản duy trì ổn định, duy trì lợi ích kinh tế có
thể đem lại từ việc sử dụng các tài sản ấy
Tính dòng tiền không bao gồm các hoạt động: financing, tax, obligations such as
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c. All of these are likely to be relevant
d. Cash outflows relating to current trade payables
e. None of these are relevant
f.
Cash outflows from financing activities
21. It is not always necessary to determine both the asset's NRV and value in use.
a. True
Đúng, vì chỉ cần 1 trong 2 "FV - costs of disposal" và "VIU" lớn hơn CA thì không cần phải
tính chỉ số còn lại
b. False
22. Internal sources of information which may suggest impairment might include...
The economic performance of the asset is worse than expected
Impact of publicity over brand values
There is evidence of physical damage or obsolescence of the asset
The cash flows required for operating the asset are much higher than budgeted
a. 1, 2, and 3
b. 1, 3 and 4
PARA
c. 2, 3, and 4
d. All of them
e. None of them
23. The discount rate used in calculating an asset's value in use should be the..............which reflects
....................
a. Current pre-tax interest rate / the time value of money
b. Interest rate charged on borrowings during its construction / the historic cost of the
asset
c. Current after-tax interest rate / the time value of money
d. Any of these options
PARA
e. None of these options
UPDATES
1. How often should a cash generating unit to which goodwill has been assigned,
be tested for impairment?
A. At management’s discretion
B. Every six months
C. Every year
D. As often as practicable
2. Goodwill and intangible assets with indefinite useful lives must be tested
for impairment at least every five years.
A. True
B. False
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3. When the recoverable amount of an asset is less than its carrying value in
the Statement of Financial Poisition, the asset is…
A. in a revaluation deficit
B. impaired
C. flawed
D. in negative equity
4. The carrying amount of an asset should not be reduced below the highest of
1. Its fair value less cost to sell
2. Its value in use
PARA
3. Zero
A. True
B. False
5. The carrying amount of an asset is defined under IAS 36 as…
A. The amount at which an asset is recognised after adding any
accumulated depreciation and accumulated impairment losses.
B. The amount at which an asset is recognised after deducting any
accumulated depreciation and accumulated impairment losses.
C. The amount at which an asset is recognised after deducting any
accumulated depreciation and adding back any accumulated impairment
losses.
D. The amount at which an asset is recognised after adding any revaluation gains
and accumulated impairment losses.
E. The amount at which an asset is recognised after deducting any revaluation
losses and accumulated impairment losses.
6. When should a reversal of an impairment
loss
beGoodwill
recognised?
Reversal of an
IL on
thì KHÔNG được ghi nhận
Reversal of an IL on Individual Assets sẽ được ghi nhận nếu có sự thay
A. Never
đổi trong việc xác định giá RA
B. Immediately
C. When approved by the board of directors
D. None of these
7. In measuring Value in Use, the discount rate used for discounting the cash flows
should be the…
A. Pre-tax rate that reflects the market assessment of time value of money and
risks specific to the asset
B. Pre-tax rate that reflects the market assessment of time value of money and
risks specific to the entity’s competitors
C. Post-tax rate that reflects the entity’s assessment of time value of money and risks
specific to the asset
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D. Pre-tax rate that reflects the entity’s assessment of time value of money and risks
specific to the asset
8. The smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other group assets or groups of assets are
called…
A. Division
B. Cash-generating unit
C. Department
D. Operating Segment
9. Which of the following is not permitted as a cost to sell under IAS 36?
A. Cost to dismantle machine
B. Auctioneers fees
C. Standard wages for employees
D. Transport costs for machine
10. If the fair value less costs to sell for an asset cannot be determined, then
recoverable amount is its…
A. Fair value
B. Market value
C. Replacement value
D. Value in use
E. Recorded value
11. The amount, which an asset is recorded in the Statement of Financial Position, less
any accumulated depreciation and impairment losses, is called…
A. Carrying amount
B. Present value
C. Fair value
D. Net realisable value
12. Value in use is…
A. The discounted present value of future cash flows expected to arise from
continuing use of asset, and from its disposal at the end of its useful life.
B. The discounted future value of future cash flows expected to arise from continuing
use of asset, and from its disposal at the end of its useful life.
C. The discounted present value of historical cash flows expected to arise from
continuing use of asset, and from its disposal at the end of its useful life.
D. The undiscounted present value of future cash flows expected to arise from
continuing use of asset, and from its disposal at the end of its useful life.
E. The undiscounted future value of present cash flows expected to arise from
continuing use of asset, and from its disposal at the end of its useful life.
13. When should a reversal of a goodwill impairment be recognised?
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A. Immediately
B. At the end of the accounting period
C. At management’s discretion
D. Never
14. Under IAS 36, when it is not possible to calculate the recoverable amount of a single
asset, what should be done?
A. A rough estimate should be provided
B. The recoverable amount of its cash generating unit should be calculated
C. A disclosure should be provided in the notes to the financial statements
D. The value should remain unchanged
15. An asset is said to be impaired if…
A. Its carrying amount exceeds its net discounted cash inflows
B. Its recoverable amount exceeds its carrying amount
C. Its carrying amount exceeds its recoverable amount
D. Its carrying amount is less than its market value
16. Which of the following is an external indication of impairment?
A. Physical damage
B. Decline in market value
C. Asset is part of a restructuring or held for disposal
D. Worse economic performance than expected
E. All of these
17. What is the treatment of an impairment loss under IAS 36?
A. Write it off against profit immediately
B. Write it off against profit over a defined period agreed by management
C. Record a liability in the SOFP for “Impairment losses”
D. Record it in Equity under “Revaluations”
18. When a reversal of an impairment loss occurs, which of the following adjustments
are to be made?
A. Recognise in the income statement and adjust the depreciation for future periods
B. Recognise in the income statement without adjustment to the depreciation
for future periods
C. Recognise in the statement of changes in equity and adjust the depreciation for
future periods
D. Recognise in the statement of changes in equity without adjustment to
the depreciation for future periods
19. Which of the following is not covered by IAS 36 – Impairment?
A. Property, Plant and Equipment
B. Inventory
C. Motor Vehicles
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D. Intangible assets
20. A cash-generating unit is defined as…
A. the smallest identifiable group of assets that generates cash inflows that are
largely independent from the cash inflows of other assets.
B. the easiest identifiable group of assets that generates cash inflows that are largely
independent from the cash inflows of other assets.
C. the smallest identifiable group of assets that generates cash outflows that
are largely independent from the cash outflows of other assets.
D. the largest identifiable group of assets that generates cash inflows that is largely
independent from the cash inflows of other assets.
21. When an impairment loss occurs, the carrying amount of the asset should be
reduced to its
A. Market value
B. Recoverable amount
C. Net present value
D. Value in use
22. When should an impairment loss be recognised?
A. Immediately
B. Over a number of accounting periods
C. At management’s discretion
D. When requested by the entity’s auditors
23. The present value of expected future cash flows generated by an asset, plus its
expected disposal value is called…
A. Net present value
B. Value in use
C. Fair value
D. Market value
24. Under IAS 36, what is the recoverable amount of an asset?
A. The lower of its cost and net realisable value
B. The higher of fair value less costs of disposal and value in use
C. The lower of net present value and cost
D. The higher of net present value and cost
25. IAS 36 presumes that budgets and forecasts while arriving at cash flow
projections should be…
A. more than ten years
B. not more than ten years
C. not more than five years
PARA
D. not more than three years
26. Which of the following is an external indication of impairment?
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A. Damage to an asset
B. Ongoing losses
C. Decline in market value
D. Management commitment to undergo a restructuring
27. When a cash-generating unit has an impairment loss, the loss must first be applied
to…
A. goodwill
B. any assets obviously impaired
C. against all assets on a pro-rata basis
D. on the entire cash generating unit on a pro-rata basis
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IAS 17 - LEASES
1.
A.
B.
C.
D.
2.
A.
B.
C.
D.
3.
A.
B.
C.
D.
4.
A.
B.
5.
A.
B.
C.
D.
6.
A.
B.
7.
Which of the following is not an indication a lease is a finance lease?
The lease transfers ownership of the asset to the lessee at the end of the lease
The lease term is for a short part of the economic life of the asset
The leased assets are specialised in nature
The present value of minimum lease payment amounts to substantially all of
the fair value of the asset
How should the minimum lease payments (‘MLP’) of a land and building lease
get apportioned?
Treat entirely as building
Treat entirely as land
Apportion MLP between land and buildings based on fair value of leasehold
interests
Apportion MLP between land and buildings based on management’s judgement
In an operating lease, if a rebate is received, how should it be recorded in the
financial statements?
Treat as deferred income and release to P&L over the lease term
Recognise immediately as income
Deduct from the value of the lease payments
Ignore
Lease payments should be split into an interest component and
expense component.
True
False
A leased asset should be depreciated over the…
Shorter of the lease term and the asset’s useful life
Longer of the lease term and the asset’s useful life
Entire lease term
Useful life of the asset
In a land lease, if title does not pass at the end of a lease to the lessee, it
is normally treated as:
Finance lease
Operating lease
Which of the following is not a disclosure requirement for finance leases:
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A.
B.
C.
D.
8.
Carrying amount of asset
Market value of asset
General description of significant leasing arrangements
Reconciliation between total minimum lease payments and their present value
How should the minimum lease payments (‘MLP’) of a land and building lease
get apportioned?
A. Treat entirely as building
B. Treat entirely as land
C. Apportion MLP between land and buildings based on fair value of
leasehold interests
D. Apportion MLP between land and buildings based on management’s judgement
9. Finance leases are accounted for in a similar manner to
A. Credit transactions
B. Cash transactions
C. Sale and leaseback agreements
D. Loan forgiveness
10. IAS 17 assumes a lessor will not recover their asset, which is leased under a
finance lease.
A. True
B. False
11. When a lease transfers substantially all the risks and rewards of ownership to
lessee, this is called…
A. A finance lease
B. An operating lease
C. A buy-to-let agreement
D. A rental agreement
12. What type of lease is presumed, when the present value of minimum
lease payments is approximately equal to the fair value of the lease
assets?
A. Finance lease
B. Operating lease
13. Operating leases are mostly
agreements.
A. Long term
B. Medium term
C. Short term
D. Verbal
14. The payments over the lease term the lessee can or must make is called…
A. Principal
B. Interest
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C. Present value payments
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D. Minimum lease payments
IAS 21 - THE EFFECTS OF CHANGES IN FOREIGN
EXCHANGE RATES
1. An entity's functional currency is defined by international standard IAS21 as the
currency in which the entity's financial statements are presented. True or False?
A. True
According to definition (Para 8): Presentation currency mới là đồng tiền trình bày trên BCTC,
còn Functional currency là đồng tiền chức năng, tiền thường xuyên hoạt động của DN
B. False
2. Factors which might help to determine an entity's functional currency include:
A. The currency that mainly influences sales prices for the entity's goods and services
B. The currency that mainly influences the costs of providing goods and services
C. The currency in which funds from financing activities are generated
D. All of the above
3. A company prepares financial statements to 31 December each year and has the
pound sterling as its functional currency. On 29 October 2020, the company buys
inventory for $28,380. This amount is still unpaid at 31 December 2020. The
inventory is all sold during the month of December. Exchange rates are £1 = $1.65 on
29 October 2020 and £1 = $1.72 on 31 December 2020. Calculate: (a) the amount in
£ at which the purchase and the trade payable should be recorded on 29 October 2020
(b) the amount in £ at which the trade payable should be shown in the statement of
financial position at 31 December 2020 (c) the exchange difference which arises.
A. £17,200 (b) £17,200 (c) £nil
Dr Inventory 28380 / 1.65 = 17200
B. £17,200 (b) £16,500 (c) £700 (favourable)
Cr TP 17200
C. £16,500 (b) £16,500 (c) £nil
Balance of TP = 28380 / 1.72 =
D. £17,200 (b) £16,500 (c) £700 (adverse)
4. When translating from an entity's functional currency to a presentation currency, any
resulting exchange differences are recognised in other comprehensive income. True or
False?
A. True
B. False
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mi
nedt
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ai
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al
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od'
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l
owst
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or
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cal
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nt
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al
st
at
ement
s
,t
hel
andwi
l
lber
epor
t
edat
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3.
4.
a.₤55,
000ont
hest
at
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i
al
pos
i
t
i
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hes
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c
.₤55,
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.
d.₤65,
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hei
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.
GAAPst
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or
1.
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3.
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a.Gener
al
l
yAccept
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.-Gi
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b.Gener
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al
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i
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ocedur
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.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
TheDuceCompanyhasfiv
epl
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snat
i
onwi
det
hatcos
t$200mi
l
l
i
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ai
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oft
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l
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i
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i
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l
i
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c
.$300mi
l
l
i
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d.$500mi
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l
i
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Equi
t
yi
sbestdepi
ct
edbyt
hef
ol
l
owi
ng:
1.
2.
3.
4.
a.Ass
et
s=Li
abi
l
i
t
i
es
.
b.Li
abi
l
i
t
i
es+Ass
et
s
.
c
.Resi
dualequi
t
y+Ass
et
s
.
d.Asset
s–Li
abi
l
i
t
i
es
.
Whi
choft
hef
ol
l
owi
ngi
sanex
t
er
naluserofaccount
i
ngi
nf
or
mat
i
on?
1.
2.
3.
4.
a.Laboruni
ons
.
b.Fi
nancedi
r
ect
or
s
.
c
.Companyofficer
s
.
d.Manager
s
.
I
FRSar
edet
er
mi
nedbyt
he
1.
2.
3.
4.
a.I
nt
er
nalAccount
i
ngSt
andar
dsBody
.
b.I
nt
er
nat
i
onal
Account
i
ngSt
udi
esBoar
d.
c
.I
nt
er
nat
i
onalAccount
i
ngSt
andar
dsBoar
d.
d.I
nt
er
nat
i
onalAudi
t
or
s'
St
andar
dsBody
.
Abasi
cassumpt
i
onofaccount
i
ngt
hatr
equi
r
esact
i
vi
t
i
esofanent
i
t
ybek
eptsepar
at
ef
r
om
t
heact
i
vi
t
i
esofi
t
sowneri
sr
ef
er
r
edt
oast
he
1.
2.
3.
4.
a.s
t
andal
oneconcept
.
b.monet
ar
yuni
tassumpt
i
on.
c
.cor
por
at
ef
or
m ofowner
s
hi
p.
d.economi
cent
i
t
yass
umpt
i
on.
Asmal
l
nei
ghbor
hoodbar
bershopt
hati
soper
at
edbyi
t
sownerwoul
dl
i
k
el
ybeor
gani
z
ed
asa
1.
2.
3.
4.
a.j
oi
ntv
ent
ur
e.
b.par
t
ner
s
hi
p.
c
.cor
por
at
i
on.
d.pr
opr
i
et
or
shi
p.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
I
nt
er
nal
user
sofaccount
i
ngi
nf
or
mat
i
oni
ncl
udeal
l
off
ol
l
owi
ngex
ceptt
he
1.
2.
3.
4.
a.CEO ofSony
.
b.HumanResour
cesdepar
t
mentatHyundai
.
c
.Mar
k
et
i
ngdepar
t
mentatBr
aun.
d.Shar
ehol
der
sofAi
r
bus
.
Et
hi
csar
et
hest
andar
dsofconductbywhi
chone'
sact
i
onsar
ej
udgedas
1.
2.
3.
4.
a.r
i
ghtorwr
ong.
b.honestordi
shonest
.
c
.f
ai
rorunf
ai
r
.
d.Al
l
oft
heseans
werc
hoi
cesar
ecor
r
ect
.
Recor
di
ngofeconomi
cev
ent
si
nv
ol
v
es
1.
2.
3.
4.
a.k
eepi
ngas
y
st
emat
i
c
,chr
onol
ogi
caldi
ar
yofev
ent
s
.
b.anal
yz
i
ngr
epor
t
edi
nf
or
mat
i
on.
c
.expl
ai
ni
ngt
hemeani
ngofr
epor
t
eddat
a.
d.pr
epar
i
ngaccount
i
ngr
epor
t
s
.
Whi
choft
hef
ol
l
owi
ngi
snotanadv
ant
ageoft
hecor
por
at
ef
or
m ofbusi
nessor
gani
z
at
i
on?
1.
2.
3.
4.
a.Li
mi
t
edl
i
abi
l
i
t
yofshar
ehol
der
s
b.Tr
ans
f
er
abi
l
i
t
yofowner
shi
p
c
.Unl
i
mi
t
edper
sonall
i
abi
l
i
t
yf
orshar
ehol
der
s
d.Unl
i
mi
t
edl
i
f
e
Theor
i
gi
nsofaccount
i
ngar
egener
al
l
yat
t
r
i
but
edt
ot
hewor
kof
1.
2.
3.
4.
a.Chr
i
s
t
opherCol
umbus
.
b.AbnerDoubl
eday
.
c
.LucaPaci
ol
i
.
d.Leonar
dodaVi
nci
.
Thef
ai
rv
al
uepr
i
nci
pl
e
1.
2.
3.
4.
a.i
soneoft
het
wocost
i
ngpr
i
nci
pl
esf
ol
l
owedbyt
heI
ASB.
b.i
smor
eusef
ult
hant
hehi
st
or
i
calcostpr
i
nci
pl
ef
orv
al
ui
ngsomeasset
s
.
c
.di
ct
at
est
hatanass
etshoul
dbev
al
uedatt
hepr
i
ceatwhi
chi
tcoul
dbesol
d.
d.Al
l
oft
heseans
werc
hoi
cesar
ecor
r
ect
.
Theaccount
i
ngpr
ocessi
scor
r
ect
l
ysequencedas
1. a.i
dent
i
ficat
i
on,communi
cat
i
on,r
ecor
di
ng.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
2. b.r
ecor
di
ng,communi
cat
i
on,i
dent
i
ficat
i
on.
3. c
.i
dent
i
ficat
i
on,r
ecor
di
ng,communi
cat
i
on.
4. d.communi
cat
i
on,r
ecor
di
ng,i
dent
i
ficat
i
on.
Fi
nanci
al
account
i
ngpr
ovi
deseconomi
candfinanci
al
i
nf
or
mat
i
onf
oreachoft
hef
ol
l
owi
ng
ex
cept
1.
2.
3.
4.
a.c
r
edi
t
or
s
.
b.i
nv
est
or
s
.
c
.manager
s
.
d.ot
herext
er
naluser
s
.
Thehi
st
or
i
cal
costpr
i
nci
pl
er
equi
r
est
hatcompani
esr
ecor
dasset
satt
hei
r
1.
2.
3.
4.
a.appr
ai
salv
al
ue.
b.cost
.
c
.mar
k
etpr
i
ce.
d.l
i
stpr
i
ce.
Whi
choft
hef
ol
l
owi
ngt
echni
quesi
snotusedbyaccount
ant
st
oi
nt
er
pr
etandr
epor
t
financi
al
i
nf
or
mat
i
on?
1.
2.
3.
4.
a.Gr
aphs
.
b.Spec
i
al
memosf
oreachcl
assofext
er
naluser
s
.
c
.Char
t
s.
d.Rat
i
os
.
Mostasset
sshoul
dbev
al
uedatcostbecausef
ai
rv
al
ues
1.
2.
3.
4.
a.ar
enotusef
ul
f
ordeci
si
onmaki
ng.
b.maynotber
epr
esent
at
i
onal
l
yf
ai
t
hf
ul
.
c
.ar
enotr
el
ev
ant
.
d.maybehi
gherorl
owert
hanhi
st
or
i
cal
cost
.
JohnandSam metatl
awschoolanddeci
det
ost
ar
tasmal
ll
awpr
act
i
ceaf
t
ergr
aduat
i
on.
Theyagr
eet
ospl
i
tr
ev
enuesandexpensesev
enl
y
.Themostcommonf
or
m ofbusi
ness
or
gani
z
at
i
onf
orabusi
nesssuchast
hi
swoul
dbea
1.
2.
3.
4.
a.j
oi
ntv
ent
ur
e.
b.par
t
ner
s
hi
p.
c
.cor
por
at
i
on.
d.pr
opr
i
et
or
shi
p.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Asi
anCompanypur
chasedl
andf
orW92,
000,
000i
n2000.AtDecember31,2014,an
appr
ai
sal
det
er
mi
nedt
hef
ai
rv
al
ueoft
hel
andi
sW106,
000,
000.Thecompanyhasan
i
nv
est
menti
nt
heor
di
nar
yshar
esofanot
hercompanyf
orwhi
chi
tpai
dW49,
000,
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n
2012.
Theshar
esar
eact
i
v
el
yt
r
adedont
heSout
hKor
eaSt
ockEx
change.Thef
ai
rv
al
ueof
t
hei
nv
est
mentatDecember31,2014i
sW63,
000,
000.Thel
andandi
nv
es
t
mentwi
l
l
be
r
epor
t
edont
heDecember31,2014st
at
ementoffinanci
al
posi
t
i
onat
1.
2.
3.
4.
a.W92,
000,
000andW49,
000,
000,r
espect
i
v
el
y
.
b.W92,
000,
000andW63,
000,
000,r
es
pect
i
v
el
y
.
c
.W106,
000,
000andW49,
000,
000,r
espect
i
v
el
y
.
d.W106,
000,
000andW63,
000,
000,r
espect
i
v
el
y
.
Li
abi
l
i
t
i
esofacompanywoul
dnoti
ncl
ude
1.
2.
3.
4.
a.not
espay
abl
e.
b.account
spay
abl
e.
c
.wagespay
abl
e.
d.cash.
Ext
er
nal
user
sofaccount
i
ngi
nf
or
mat
i
oni
ncl
udet
he
1.
2.
3.
4.
a.l
nt
er
nat
i
onal
Account
i
ngSt
andar
dsBoar
d.
b.shar
ehol
der
sofFer
r
agamo.
c
.Mar
k
et
i
ngdepar
t
mentatOl
i
v
et
t
i
.
d.CEO ofAi
rI
t
al
y
.
Whi
choft
hef
ol
l
owi
ngwoul
dnotbeconsi
der
edanext
er
nal
userofaccount
i
ngdat
af
ort
he
GHICompany
?
1.
2.
3.
4.
a.Taxi
ngaut
hor
i
t
yr
epr
esent
at
i
v
e.
b.Management
.
c
.Cr
edi
t
or
s
.
d.Cust
omer
s
.
Whi
choft
hef
ol
l
owi
ngi
st
r
uer
egar
di
ngt
hecor
por
at
ef
or
m ofbusi
nessor
gani
z
at
i
on?
1. a.Cor
por
at
i
onsar
et
hemostpr
ev
al
entf
or
m ofbus
i
nessor
gani
zat
i
on.
2. b.Cor
por
at
ebus
i
nessesar
egener
al
l
ysmal
l
eri
nsi
z
et
hanpar
t
ner
s
hi
psandpr
opr
i
et
or
shi
ps
.
3. c
.Ther
ev
enuesofcor
por
at
i
onsar
egr
eat
ert
hant
hecombi
nedr
ev
enuesofpar
t
ner
shi
psand
pr
opr
i
et
or
shi
ps
.
4. d.Cor
por
at
i
onsar
esepar
at
el
egal
ent
i
t
i
esor
gani
z
edex
cl
us
i
v
el
yunderf
eder
all
aw.
Theaccount
i
ngpr
ocessi
ncl
udeseachoft
hef
ol
l
owi
ngex
cept
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.communi
cat
i
on.
b.conv
er
gence.
c
.i
dent
i
ficat
i
on.
d.r
ecor
di
ng.
Thepar
t
ner
shi
pf
or
m ofbusi
nessor
gani
z
at
i
on
1.
2.
3.
4.
a.i
sasepar
at
el
egal
ent
i
t
y
.
b.i
sacommonf
or
m ofor
gani
z
at
i
onf
orser
vi
cet
ypebusi
nesses
.
c
.enj
oy
sanunl
i
mi
t
edl
i
f
e.
d.hasl
i
mi
t
edl
i
abi
l
i
t
y
.
Whi
choft
hef
ol
l
owi
ngwoul
dnotbeconsi
der
edani
nt
er
naluserofaccount
i
ngdat
af
orGHI
Company
?
1.
2.
3.
4.
a.Pr
esi
dentoft
hecompany
.
b.Pr
oduct
i
onmanager
.
c
.Mer
chandi
sei
nv
ent
or
ycl
er
k
.
d.Pr
esi
dentoft
heempl
oy
ees'
l
aboruni
on.
Conv
er
gencer
ef
er
st
o
1. a.usi
ngt
hesameaccount
i
ngpr
i
nci
pl
esf
r
om oneper
i
odt
ot
henext
.
2. b.useoft
hesameaccount
i
ngpr
i
nci
pl
esbyal
lc
ompani
es
.
3. c
.t
heel
i
mi
nat
i
onofal
l
account
i
ngst
andar
dset
t
i
ngbodi
esex
ceptt
heI
nt
er
nat
i
onal
Account
i
ngSt
andar
ds
Boar
d.
4. d.t
hepr
ocessofr
educi
ngt
hedi
ffer
encesbet
weenI
FRSandGAAP.
Whi
choft
hef
ol
l
owi
ngev
ent
scannotbequant
i
fiedi
nt
odol
l
ar
sandcent
sandr
ecor
dedas
anaccount
i
ngt
r
ansact
i
on?
1.
2.
3.
4.
a.Theappoi
nt
mentofanewaccount
i
ngfir
mt
oper
f
or
m anaudi
t
.
b.Thepur
chaseofanewcomput
er
.
c
.Thes
al
eofs
t
or
eequi
pment
.
d.Paymentofi
ncomet
ax
es
.
Communi
cat
i
onofeconomi
cev
ent
si
st
hepar
toft
heaccount
i
ngpr
ocesst
hati
nv
ol
v
es
1.
2.
3.
4.
a.i
dent
i
f
y
i
ngeconomi
cev
ent
s
.
b.quant
i
f
yi
ngt
r
ansact
i
onsi
nt
odol
l
ar
sandcent
s
.
c
.pr
epar
i
ngaccount
i
ngr
epor
t
s
.
d.r
ecor
di
ngandcl
assi
f
yi
ngi
nf
or
mat
i
on.
Equi
t
yi
sof
t
enr
ef
er
r
edt
oas
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lOMoARcPSD|10406454
1.
2.
3.
4.
a.r
es
i
dualequi
t
y
.
b.l
ef
t
ov
er
s
.
c
.spoi
l
s
.
d.secondequi
t
y
.
Hyundai
I
nc
.pur
chasedl
andf
orW118,
000,
000i
n2005.AtDecember31,2014,an
appr
ai
sal
det
er
mi
nedt
hef
ai
rv
al
ueoft
hel
andi
sW136,
000,
0000.I
fHyundai
f
ol
l
owst
he
costpr
i
nci
pl
e,t
hel
andwi
l
l
ber
epor
t
edont
hest
at
ementoffinanci
alposi
t
i
onat
1.
2.
3.
4.
a.W100,
000,
000.
b.W118,
000,
000.
c
.W136,
000,
000.
d.W154,
000,
000.
Account
ant
sr
ef
ert
oaneconomi
cev
entasa
1.
2.
3.
4.
a.pur
chase.
b.sal
e.
c
.t
r
ansact
i
on.
d.changei
nowner
shi
p.
Thecommonchar
act
er
i
st
i
cpossessedbyal
l
asset
si
s
1.
2.
3.
4.
a.l
ongl
i
f
e.
b.gr
eatmonet
ar
yv
al
ue.
c
.t
angi
bl
enat
ur
e.
d.f
ut
ur
eeconomi
cbenefit
.
Abusi
nessor
gani
z
edasacor
por
at
i
on
1.
2.
3.
4.
a.i
snotasepar
at
el
egal
ent
i
t
yi
nmostcount
r
i
es
.
b.r
equi
r
est
hats
har
ehol
der
sbeper
sonal
l
yl
i
abl
ef
ort
hedebt
soft
hebus
i
ness
.
c
.i
sownedbyi
t
sshar
ehol
der
s
.
d.t
er
mi
nat
eswhenoneofi
t
sor
i
gi
nals
har
ehol
der
sdi
es
.
Li
abi
l
i
t
i
es
1.
2.
3.
4.
a.ar
ef
ut
ur
eeconomi
cbenefit
s
.
b.ar
eexi
st
i
ngdebt
sandobl
i
gat
i
ons
.
c
.possessser
vi
cepot
ent
i
al
.
d.ar
et
hi
ngsofv
al
ueusedbyt
hebusi
nessi
ni
t
soper
at
i
on.
Whenasset
sar
edi
st
r
i
but
edt
ot
heshar
ehol
der
sofacor
por
at
i
on,t
hesedi
st
r
i
but
i
onsar
e
t
er
med
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.depl
et
i
ons
.
b.cons
umpt
i
ons
.
c
.di
vi
dends
.
d.acr
edi
tl
i
ne.
Whi
choneoft
hef
ol
l
owi
ngi
snotanext
er
nal
userofaccount
i
ngi
nf
or
mat
i
on?
1.
2.
3.
4.
a.Regul
at
or
yagenc
i
es
.
b.Cust
omer
s
.
c
.I
nv
est
or
s
.
d.Al
l
oft
heseans
werc
hoi
cesar
ecor
r
ect
.
Thepr
opr
i
et
or
shi
pf
or
m ofbusi
nessor
gani
z
at
i
on
1.
2.
3.
4.
a.musthav
eatl
eastt
hr
eeowner
si
nmostst
at
es
.
b.r
equi
r
est
hatt
heownerbeper
sonal
l
yl
i
abl
ef
oral
l
debt
soft
hebusi
ness
.
c
.combi
nest
her
ecor
dsoft
hebus
i
nesswi
t
ht
heper
s
onal
r
ecor
dsoft
heowner
.
d.i
schar
act
er
i
z
edbyal
egaldi
s
t
i
nct
i
onbet
weent
hebus
i
nessasaneconomi
cuni
tandt
heowner
.
Theeconomi
cent
i
t
yassumpt
i
onr
equi
r
est
hatt
heact
i
vi
t
i
es
1.
2.
3.
4.
a.ofdi
ffer
entent
i
t
i
escanbecombi
nedi
fal
l
t
heent
i
t
i
esar
ecor
por
at
i
ons
.
b.mustber
epor
t
edt
ot
heSec
ur
i
t
i
esandEx
changeCommi
ssi
on.
c
.ofas
ol
epr
opr
i
et
or
shi
pcannotbedi
st
i
ngui
s
hedf
r
om t
heper
sonaleconomi
cev
ent
sofi
t
sowner
s
.
d.ofanent
i
t
ybek
eptsepar
at
ef
r
om t
heact
i
vi
t
i
esofi
t
sowner
.
Theaccount
i
ngpr
ocessi
nv
ol
v
esal
l
oft
hef
ol
l
owi
ngex
cept
1.
2.
3.
4.
a.i
dent
i
f
y
i
ngeconomi
cev
ent
st
hatar
er
el
ev
antt
ot
hebus
i
ness
.
b.communi
cat
i
ngfinanc
i
al
i
nf
or
mat
i
ont
ouser
sbypr
epar
i
ngfinanci
alr
epor
t
s
.
c
.r
ecor
di
ngnonquant
i
fiabl
eeconomi
cev
ent
s
.
d.anal
yz
i
ngandi
nt
er
pr
et
i
ngfinanci
alr
epor
t
s
.
Thebasi
caccount
i
ngequat
i
onmaybeexpr
essedas
1.
2.
3.
4.
a.Ass
et
s-Equi
t
y=Li
abi
l
i
t
i
es
.
b.Asset
s–Li
abi
l
i
t
i
es=Equi
t
y
.
c
.Asset
s=Li
abi
l
i
t
i
es+Equi
t
y
.
d.Al
l
oft
heseans
werc
hoi
cesar
ecor
r
ect
.
Bumi
Cor
por
at
i
onpur
chasedani
nv
est
menti
nt
heor
di
nar
yshar
esofanot
hercor
por
at
i
onf
or
Rp250,
000,
000i
n2012.Theshar
esar
eact
i
v
el
yt
r
adedont
heI
ndonesi
anSt
ockEx
change.
Thef
ai
rv
al
ueoft
hei
nv
est
mentatDecember31,2014i
sRp268,
000,
000.I
ft
hecompany
f
ol
l
owst
hef
ai
rv
al
uepr
i
nci
pl
e,t
hei
nv
est
mentwi
l
l
ber
epor
t
edi
nt
he2014financi
al
st
at
ementat
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.Rp250,
000,
000ont
hest
at
ementoffinanc
i
al
pos
i
t
i
on.
b.Rp268,
000,
000ont
hes
t
at
ementoffinanci
al
posi
t
i
on.
c
.Rp250,
000,
000ont
her
et
ai
nedear
ni
ngsst
at
ement
.
d.Rp268,
000,
000ont
her
et
ai
nedear
ni
ngsst
at
ement
.
Abusi
nesswhoseowner
senj
oyl
i
mi
t
edl
i
abi
l
i
t
yi
sa
1.
2.
3.
4.
a.pr
opr
i
et
or
shi
p.
b.par
t
ner
s
hi
p.
c
.cor
por
at
i
on.
d.sol
epr
opr
i
et
or
shi
p.
172Fr
eeTes
tBankf
orFi
nanci
alAccount
i
ngI
FRSEdi
t
i
on2ndEdi
t
i
onby
Wey
gandtMul
t
i
pl
eChoi
ceQues
t
i
ons-Page2
Adi
vi
dendi
s
1.
2.
3.
4.
a.adi
st
r
i
but
i
onoft
hecompany'
sear
ni
ngst
oi
t
sshar
ehol
der
s
.
b.equal
t
ol
i
abi
l
i
t
i
esmi
nusequi
t
y
.
c
.equal
t
oasset
smi
nusequi
t
y
.
d.equal
t
or
ev
enuesl
essexpenses
.
Thebasi
caccount
i
ngequat
i
oncannotber
est
at
edas
1.
2.
3.
4.
a.Ass
et
s–Li
abi
l
i
t
i
es=Equi
t
y
.
b.Asset
s–Equi
t
y=Li
abi
l
i
t
i
es
.
c
.Equi
t
y+Li
abi
l
i
t
i
es=Ass
et
s
.
d.Asset
s+Li
abi
l
i
t
i
es=Equi
t
y
.
AsofDecember31,2014,Oxf
or
dwel
shI
nc
.hadasset
sof₤6,
520,
000,l
i
abi
l
i
t
i
esof
₤1,
980,
000,andshar
ecapi
t
alof₤2,
820,
000.Ret
ai
nedear
ni
ngsasoft
hatdat
ear
e
1.
2.
3.
4.
a.₤1,
720,
000.
b.₤3,
700,
000.
c
.₤4,
540,
000.
d.₤6,
520,
000.
I
facor
por
at
i
ondi
st
r
i
but
escasht
oi
t
sshar
ehol
der
s
,t
hen
1.
2.
3.
4.
a.t
her
ehasbeenavi
ol
at
i
onofaccount
i
ngpr
i
nci
pl
es
.
b.equi
t
ywi
l
li
ncr
ease.
c
.equi
t
ywi
l
ldecr
ease.
d.t
her
ewi
l
l
beanewl
i
abi
l
i
t
yshowi
ngt
hes
har
ehol
der
sowemoneyt
ot
hebusi
ness.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
AsofDecember31,2014,Dei
t
r
i
chI
nc
.hadasset
sof€13,
050,
000,l
i
abi
l
i
t
i
esof€4,
650,
000,
shar
ecapi
t
al
of₤3,
300,
000andr
et
ai
nedear
ni
ngsof€5,
100,
000.Tot
al
equi
t
yasoft
hatdat
e
i
s
1.
2.
3.
4.
a.€3,
300,
000.
b.€3,
750,
000.
c
.€8,
400,
000.
d.€13,
050,
000.
Acompanyi
ncr
easesi
t
sshar
ecapi
t
al
by
1.
2.
3.
4.
a.sel
l
i
ngor
di
nar
yshar
est
oi
t
si
nv
est
or
s
.
b.per
f
or
mi
ngser
vi
cesf
orcash.
c
.sel
l
i
nggoodsonaccount
.
d.payi
ngdi
vi
dendst
oi
t
ss
har
ehol
der
s
.
Ani
nv
es
t
mentofcashbyanownerofabusi
nessi
nc
r
easesasset
sand
1.
2.
3.
4.
a.i
ncr
easesl
i
abi
l
i
t
i
es
.
b.i
nc
r
easesequi
t
y
.
c
.dec
r
easesequi
t
y
.
d.dec
r
easesl
i
abi
l
i
t
i
es
.
AsofDecember31,2014,Loj
asCompanyr
epor
t
edass
et
sofR$7,
400,
000,l
i
abi
l
i
t
i
esof
R$2,
200,
000,shar
ecapi
t
al
ofR$1,
980,
000andr
et
ai
nedear
ni
ngsofR$3,
220,
000.Tot
al
equi
t
yr
epor
t
edont
hest
at
ementoffinanci
al
posi
t
i
onasoft
hatdat
ei
s
1.
2.
3.
4.
a.R$1,
240,
000.
b.R$5,
200000.
c
.R$5,
400000.
d.R$7,
400.
000.
Col
l
ect
i
onofa$500account
sr
ecei
v
abl
e
1.
2.
3.
4.
a.i
ncr
easesanasset$500;decr
easesanasset$500.
b.i
nc
r
easesanasset$500;decr
easesal
i
abi
l
i
t
y$500.
c
.dec
r
easesal
i
abi
l
i
t
y$500;i
ncr
easesequi
t
y$500.
d.dec
r
easesanass
et$500;decr
easesal
i
abi
l
i
t
y$500.
Rev
enuesar
e
1.
2.
3.
4.
a.t
hecostofass
et
scons
umeddur
i
ngt
heper
i
od.
b.gr
ossi
ncr
easesi
nequi
t
yr
esul
t
i
ngf
r
om busi
nes
sact
i
vi
t
i
es
.
c
.t
hecostofser
vi
cesuseddur
i
ngt
heper
i
od.
d.act
ual
orexpect
edcashout
flows
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Thest
at
ementoffinanci
al
posi
t
i
oni
sf
r
equent
l
yr
ef
er
r
edt
oas
1.
2.
3.
4.
a.anoper
at
i
ngst
at
ement
.
b.t
hebal
ancesheet
.
c
.t
hes
t
at
ementofcashflows
.
d.t
hes
t
at
ementofchangesi
nequi
t
y
.
Al
l
oft
hef
ol
l
owi
ngt
r
ansact
i
onsi
ncr
easer
ev
enueex
ceptt
he
1.
2.
3.
4.
a.s
al
eofaddi
t
i
onal
or
di
nar
ys
har
esbyBr
i
t
i
s
hAi
r
way
s
.
b.sal
eofcl
ot
hi
ngbyt
heFr
enchConnect
i
on.
c
.per
f
or
manceofacccount
i
ngser
vi
cesbyPr
i
cewat
er
hous
eCooper
s
.
d.sal
eofper
t
r
ol
eum byRoy
alDut
chShel
l
.
AsofDecember31,2014,Dol
ce&GabannaI
nc
.hadasset
sof€7,
600,
000,shar
ecapi
t
al
of
€2,
800,
000andr
et
ai
nedear
ni
ngsof€3,
200,
000.Tot
al
l
i
abi
l
i
t
i
esasoft
hatdat
ear
e
1.
2.
3.
4.
a.€0.
b.€1,
600,
000.
c
.€4,
800,
000.
d.€13,
600,
000.
OnJune6,Wi
ngWahI
nc
.pur
chasedsuppl
i
esonaccountf
orHK$60,
000.OnJune30,t
he
companypai
dhal
foft
hebal
ancedue.TheJune30paymentwi
l
l
1.
2.
3.
4.
a.decr
eas
eCashandi
ncr
easeSuppl
i
esExpensebyHK$60,
000.
b.i
nc
r
easeCas
handdecr
easeAccount
sRecei
v
abl
ebyHK$30,
000.
c
.dec
r
easeCashanddecr
easeAccount
sPay
abl
ebyHK$30,
000.
d.dec
r
easeSuppl
i
esandi
ncr
easeSuppl
i
esExpensebyHK$30,
000.
Fr
ei
r
sCompanypai
dt
hemont
hl
yr
entof€6,
000.Thi
st
r
ansact
i
onwi
l
l
1.
2.
3.
4.
a.i
ncr
eas
eCashanddecr
easeRentExpens
eby€6,
000.
b.dec
r
easeCas
handdecr
easeRentExpenseby€6,
000.
c
.dec
r
easeCashandi
ncr
easeRentExpenseby€6,
000.
d.hav
enoeffectont
heaccount
i
ngequat
i
on.
Tot
al
equi
t
ychangedbywhatamountf
r
om t
hebegi
nni
ngoft
hey
eart
ot
heendoft
hey
ear
?
1.
2.
3.
4.
a.$90,
000.
b.$390,
000.
c
.$180,
000.
d.$300,
000.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
AsofJune30,2014,Dal
l
asCompanyhasasset
sof$140,
000andequi
t
yof$10,
000.What
ar
et
hel
i
abi
l
i
t
i
esf
orDal
l
asCompanyasofJune30,2014?
1.
2.
3.
4.
a.$150,
000
b.$120,
000
c
.$130,
000
d.$140,
000
Bennoi
tCor
por
at
i
onpai
ddi
vi
dendst
ot
al
i
ng€295,
000t
oi
t
sshar
ehol
der
s
.Thi
st
r
ansact
i
on
wi
l
l
decr
easeasset
sand
1.
2.
3.
4.
a.decr
eas
eequi
t
yby€295,
000.
b.dec
r
easel
i
abi
l
i
t
i
esby€295,
000.
c
.i
nc
r
easeexpensesby€295,
000.
d.hav
enoeffectont
heaccount
i
ngequat
i
on.
McDonagal
I
nc
.sol
dor
di
nar
yshar
esf
or£2,
200,
000.Thi
st
r
ansact
i
onwi
l
l
i
ncr
ease
1.
2.
3.
4.
a.Cashandi
ncr
easeRet
ai
nedEar
ni
ngsby£2,
200,
000.
b.Cas
handi
ncr
easeShar
eCapi
t
al
by£2,
200,
000.
c
.Ser
vi
ceRev
enueandi
nc
r
easeShar
eCapi
t
alby£2,
200,
000.
d.Ser
vi
ceRev
enueandi
nc
r
easeCashby£2,
200,
000.
Ther
et
ai
nedear
ni
ngssect
i
onoft
hest
at
ementoffi
nanci
al
posi
t
i
oni
sdet
er
mi
nedby
1.
2.
3.
4.
a.ass
et
s
,
l
i
abi
l
i
t
i
esandshar
ecapi
t
al
.
b.r
ev
enues
,expensesandshar
ecapi
t
al
.
c
.shar
ecapi
t
al
,di
vi
dendsandr
esi
dual
equi
t
y
.
d.r
ev
enues
,expensesanddi
vi
dends
.
OnJanuar
y11,2014,Br
i
t
anni
caCor
por
at
i
onsol
dor
di
nar
yshar
est
oi
nv
est
or
sf
or
₤6,
550,
000.Thi
st
r
ansact
i
onwi
l
l
i
ncr
easeasset
sand
1.
2.
3.
4.
a.decr
eas
el
i
abi
l
i
t
i
esby₤6,
550,
000.
b.dec
r
easeequi
t
yby₤6,
550,
000.
c
.i
nc
r
easer
ev
enuesby₤6,
550,
000.
d.i
nc
r
easeequi
t
yby₤6,
550,
000.
I
fani
ndi
vi
dual
asseti
si
ncr
eased,t
hen
1.
2.
3.
4.
a.t
her
emustbeanequal
decr
easei
naspec
i
ficl
i
abi
l
i
t
y
.
b.t
her
emustbeanequal
decr
easei
nequi
t
y
.
c
.t
her
emustbeanequal
decr
easei
nanot
herasset
.
d.Noneoft
heseans
werc
hoi
cesar
ecor
r
ect
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Bur
gundyI
nc
.pur
chasedsuppl
i
esonaccountf
or€26,
000.Thi
st
r
ansact
i
onwi
l
l
1.
2.
3.
4.
a.i
ncr
eas
el
i
abi
l
i
t
i
esanddec
r
easeequi
t
yby€26,
000.
b.i
nc
r
easeasset
sanddecr
easeequi
t
yby€26,
000.
c
.i
nc
r
easeasset
sandi
ncr
easel
i
abi
l
i
t
i
esby€26,
000.
d.hav
enoeffectont
heaccount
i
ngequat
i
on.
I
fser
vi
cesar
er
ender
edf
orcr
edi
t
,t
hen
1.
2.
3.
4.
a.ass
et
swi
l
l
dec
r
ease.
b.l
i
abi
l
i
t
i
eswi
l
l
i
ncr
ease.
c
.equi
t
ywi
l
li
ncr
ease.
d.l
i
abi
l
i
t
i
eswi
l
l
dec
r
ease.
I
ft
her
et
ai
nedear
ni
ngsaccounti
ncr
easesf
r
om t
hebegi
nni
ngoft
hey
eart
ot
heendoft
he
y
ear
,t
hen
1.
2.
3.
4.
a.neti
ncomei
sl
esst
handi
vi
dends
.
b.netl
ossi
sl
esst
handi
vi
dends
.
c
.t
hecompanymusthav
es
ol
dshar
es
.
d.neti
ncomei
sgr
eat
ert
handi
v
i
dends
.
AsofDecember31,2014,ThamesCompanyr
epor
t
edasset
sof₤6,
480,
000,l
i
abi
l
i
t
i
esof
₤1,
920,
000andr
et
ai
nedear
ni
ngsof₤3,
315,
000.Shar
ecapi
t
al
r
epor
t
edont
heDecember
31,2014st
at
ementoffinanci
al
posi
t
i
oni
s
1.
2.
3.
4.
a.₤1,
245,
000.
b.₤1,
395,
000.
c
.₤5,
235,
000.
d.₤9,
795,
000.
Ast
at
ementoffinanci
alposi
t
i
onshows
1.
2.
3.
4.
a.r
ev
enues
,l
i
abi
l
i
t
i
es
,andequi
t
y
.
b.expenses
,di
v
i
dendsandequi
t
y
.
c
.r
ev
enues
,expenses
,anddi
v
i
dends
.
d.asset
s
,l
i
abi
l
i
t
i
es
,andequi
t
y
.
Ret
ai
nedear
ni
ngsatt
heendoft
heper
i
odi
sequal
t
o
1.
2.
3.
4.
a.r
et
ai
nedear
ni
ngsatt
hebegi
nni
ngoft
heper
i
odpl
usneti
ncomemi
nusl
i
abi
l
i
t
i
es
.
b.r
et
ai
nedear
ni
ngsatt
hebegi
nni
ngoft
heper
i
odpl
usneti
ncomemi
nusdi
vi
dends
.
c
.neti
ncome.
d.asset
spl
usl
i
abi
l
i
t
i
es
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
I
ft
ot
al
l
i
abi
l
i
t
i
esdecr
easedby¥30,
000andequi
t
yi
ncr
easedby¥5,
000dur
i
ngaper
i
odof
t
i
me,t
hent
ot
al
asset
smustchangebywhatamountanddi
r
ect
i
ondur
i
ngt
hatsameper
i
od?
1.
2.
3.
4.
a.¥25,
000decr
ease
b.¥25,
000i
nc
r
ease
c
.¥30,
000i
ncr
ease
d.¥35,
000i
ncr
ease
Oni
t
sDecember31,2014st
at
ementoffinanci
al
posi
t
i
on,Adar
oCor
por
at
i
onr
epor
t
ed
l
i
abi
l
i
t
i
esofRp5,
132,
000,
000,shar
ecapi
t
al
ofRp2,
662,
000,
000andr
et
ai
nedear
ni
ngsof
Rp4,
202,
000,
000.Tot
al
asset
sasofDecember31,2014ar
e
1.
2.
3.
4.
a.Rp1,
732,
000,
000.
b.Rp4,
202,
000,
000.
c
.Rp6,
864,
000,
000.
d.Rp11,
996,
000,
000.
I
ft
ot
al
l
i
abi
l
i
t
i
esdecr
easedby¥35,
000andequi
t
yi
ncr
easedby¥10,
000dur
i
ngaper
i
odof
t
i
me,t
hent
ot
al
asset
smustchangebywhatamountanddi
r
ect
i
ondur
i
ngt
hatsameper
i
od?
1.
2.
3.
4.
a.¥45,
000i
ncr
eas
e
b.¥25,
000decr
ease
c
.¥25,
000i
ncr
ease
d.¥35,
000decr
ease
Whi
choft
hef
ol
l
owi
ngev
ent
si
snotabusi
nesst
r
ansact
i
on?
1.
2.
3.
4.
a.I
ssuanceofshar
esi
nex
changef
orcash
b.Hi
r
edempl
oy
ees
c
.I
ncur
r
edut
i
l
i
t
yexpensesf
ort
hemont
h
d.Ear
nedr
ev
enuef
orser
vi
cespr
ov
i
ded
Thepur
chaseofsuppl
i
esonaccounti
ncr
easesasset
sand
1.
2.
3.
4.
a.al
sodec
r
easesass
et
ssot
her
ei
snonetchange.
b.i
nc
r
easesl
i
abi
l
i
t
i
es
.
c
.dec
r
easesequi
t
y
.
d.i
nc
r
easesequi
t
y
.
Neti
ncomer
esul
t
swhen
1.
2.
3.
4.
a.Ass
et
s>Li
abi
l
i
t
i
es
.
b.Rev
enues=Expenses
.
c
.Rev
enues>Expenses
.
d.Rev
enues<Expenses
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Equi
t
yi
sdecr
easedby
1.
2.
3.
4.
a.ass
et
s
.
b.r
ev
enues
.
c
.expenses
.
d.l
i
abi
l
i
t
i
es
.
Theneti
ncomer
epor
t
edbyCar
l
a'
sComput
erRepai
rShopf
ort
hey
earwas
1.
2.
3.
4.
a.$300,
000.
b.$390,
000.
c
.$180,
000.
d.$810,
000.
Ani
ncomest
at
ement
1.
2.
3.
4.
a.s
ummar
i
z
est
hechangesi
nequi
t
yf
oraspeci
ficper
i
odoft
i
me.
b.r
epor
t
st
hechangesi
nasset
s
,l
i
abi
l
i
t
i
es
,andequi
t
yov
eraper
i
odoft
i
me.
c
.r
epor
t
st
heass
et
s
,l
i
abi
l
i
t
i
es
,andequi
t
yataspec
i
ficdat
e.
d.pr
esent
st
her
ev
enuesandexpensesf
oras
peci
ficper
i
odoft
i
me.
AsofDecember31,2014,Si
ev
er
sCompanyhasasset
sof₤90,
000andequi
t
yof₤40,
000.
Whatar
et
hel
i
abi
l
i
t
i
esf
orSi
ev
er
sCompanyasofDecember31,2014?
1.
2.
3.
4.
a.₤50,
000.
b.₤20,
000.
c
.₤30,
000.
d.₤40,
000.
Theequi
t
ysect
i
onofast
at
ementoffinanci
al
posi
t
i
onhast
wocomponent
s
:
1.
2.
3.
4.
a.s
har
ecapi
t
al
andl
i
abl
i
t
i
es
.
b.asset
sandl
i
abl
i
t
i
es
.
c
.shar
ecapi
t
al
andr
et
ai
nedear
ni
ngs
.
d.shar
ecapi
t
al
andasset
s
.
Equi
t
yi
sdecr
easedbyal
l
oft
hef
ol
l
owi
ngex
cept
1.
2.
3.
4.
a.i
ss
uanceofshar
es
.
b.di
vi
dends
.
c
.expenses
.
d.netl
osses
.
I
ft
ot
al
l
i
abi
l
i
t
i
esi
ncr
easedby¥35,
000andequi
t
yi
ncr
easedby¥10,
000dur
i
ngaper
i
odof
t
i
me,t
hent
ot
al
asset
smustchangebywhatamountanddi
r
ect
i
ondur
i
ngt
hatsameper
i
od?
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.¥45,
000decr
ease
b.¥45,
000i
nc
r
ease
c
.¥60,
000i
ncr
ease
d.¥70,
000i
ncr
ease
Sour
cesofi
ncr
easest
oequi
t
yar
e
1.
2.
3.
4.
a.i
ss
uanceofshar
es
.
b.pur
chasesofmer
chandi
se.
c
.di
vi
dends
.
d.expenses
.
Equi
t
yatt
heendoft
hey
earwas
1.
2.
3.
4.
a.$480,
000.
b.$450,
000.
c
.$570,
000.
d.$390,
000.
OnNov
ember4,Vi
v
oCompanyper
f
or
medser
vi
cesonaccountf
orR$295,
000.On
Nov
ember26,t
hecompanycol
l
ect
edt
hebal
ancedue.TheNov
ember26t
r
ansact
i
onwi
l
l
i
ncr
ease
1.
2.
3.
4.
a.CashandAccount
sPay
abl
ebyR$295,
000.
b.Account
sRecei
v
abl
eandSer
vi
ceRev
enuebyR$295,
000
c
.Cashanddecr
easeAccount
sRecei
v
abl
ebyR$295,
000
d.Ser
vi
ceRev
enueanddecr
easeAccount
sRecei
v
abl
ebyR$295,
000.
OnFebr
uar
y1,Pot
t
erCompanypai
d£900f
oradv
er
t
i
sement
st
or
undur
i
ngt
hemont
hof
Febr
uar
y
.Thi
st
r
ansact
i
onwi
l
l
1.
2.
3.
4.
a.decr
eas
eCashandi
ncr
easeAdv
er
t
i
si
ngEx
penseby£900.
b.i
nc
r
easeAdv
er
t
i
si
ngExpenseandi
ncr
eas
eAccount
sPay
abl
eby£900.
c
.dec
r
easeAccount
sPay
abl
eanddecr
eas
eCashby£900.
d.dec
r
easeCashanddecr
easeAdv
er
t
i
s
i
ngExpenseby£900.
GafisaI
nc
.per
f
or
medser
vi
cesf
orR$195,
000.Thecompanycol
l
ect
edR$65,
000i
ncash.
Thebal
ancewi
l
l
becol
l
ect
edi
n30day
s
.Per
f
or
mi
ngser
vi
cesf
orR$195,
000wi
l
l
i
ncr
ease
1.
2.
3.
4.
a.ass
et
sbyR$65,
000andequi
t
ybyR$130,
000.
b.asset
sbyR$65,
000,l
i
abl
i
t
i
esbyR$130,
000andequi
t
ybyR$195,
000.
c
.l
i
abi
l
i
t
esandequi
t
ybyR$195,
000.
d.asset
sandequi
t
ybyR$195,
000.
Apaymentonaccountdecr
eases
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.ass
et
sandequi
t
y
.
b.l
i
abi
l
i
t
i
esandequi
t
y
.
c
.asset
sandl
i
abi
l
i
t
i
es
.
d.asset
s
,l
i
abi
l
i
t
i
esandequi
t
y
.
I
fexpensesar
epai
di
ncash,t
hen
1.
2.
3.
4.
a.ass
et
swi
l
l
i
ncr
ease.
b.l
i
abi
l
i
t
i
eswi
l
l
decr
ease.
c
.equi
t
ywi
l
li
ncr
ease.
d.asset
swi
l
ldecr
ease.
I
ft
ot
al
l
i
abi
l
i
t
i
esi
ncr
easedby$6,
000,t
hen
1.
2.
3.
4.
a.ass
et
smusthav
edecr
easedby$6,
000.
b.equi
t
ymusthav
ei
ncr
easedby$6,
000.
c
.asset
smusthav
ei
ncr
easedby$6,
000,orequi
t
ymusthav
edec
r
easedby$6,
000.
d.asset
sandequi
t
yeachi
ncr
easedby$3,
000.
I
ft
ot
al
l
i
abi
l
i
t
i
esi
ncr
easedby¥26,
000dur
i
ngaper
i
odoft
i
meandequi
t
ydecr
easedby
¥9,
000dur
i
ngt
hesameper
i
od,t
hent
heamountanddi
r
ect
i
onoft
heper
i
od’
schangei
nt
ot
al
asset
si
sa(
n)
1.
2.
3.
4.
a.¥26,
000i
ncr
ease.
b.¥35,
000i
nc
r
ease.
c
.¥17,
000decr
ease.
d.¥17,
000i
ncr
ease.
I
ft
ot
al
l
i
abi
l
i
t
i
esdecr
easedby¥35,
000andequi
t
ydecr
easedby¥10,
000dur
i
ngaper
i
odof
t
i
me,t
hent
ot
al
asset
smustchangebywhatamountanddi
r
ect
i
ondur
i
ngt
hatsameper
i
od?
1.
2.
3.
4.
a.¥45,
000i
ncr
eas
e
b.¥25,
000i
nc
r
ease
c
.¥45,
000decr
ease
d.¥25,
000decr
ease
SaoPaul
oCompanyper
f
or
medser
vi
cesonaccountf
orR$160,
000.Thi
st
r
ansact
i
onwi
l
l
1.
2.
3.
4.
a.i
ncr
eas
eass
et
sandl
i
abi
l
i
t
i
esbyR$160,
000.
b.i
nc
r
easeasset
sandequi
t
ybyR$160,
000.
c
.i
nc
r
easel
i
abi
l
i
t
i
esandequi
t
ybyR$160,
000.
d.hav
enoeffectont
heaccount
i
ngequat
i
on.
Equi
t
yi
si
ncr
easedby
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.di
vi
dends
.
b.r
ev
enues
.
c
.expenses
.
d.l
i
abi
l
i
t
i
es
.
Vi
t
aCor
por
at
i
onper
f
or
medser
vi
cesonaccountf
or€22,
000.Thi
st
r
ansact
i
onwi
l
l
1.
2.
3.
4.
a.i
ncr
eas
eCashandi
ncr
eas
eSer
vi
ceRev
enueby€22,
000.
b.i
nc
r
easeAccount
sRecei
v
abl
eandi
nc
r
easeSer
v
i
ceRev
enueby€22,
000.
c
.dec
r
easeAccount
sPay
abl
eandi
ncr
eas
eCashby€22,
000.
d.i
nc
r
easeCas
handdecr
easeAccount
sRecei
v
abl
eby€22,
000.
Rev
enueswoul
dnotr
esul
tf
r
om
1.
2.
3.
4.
a.s
al
eofmer
chandi
se.
b.i
ssuanceofor
di
nar
yshar
es
.
c
.per
f
or
manceofser
vi
ces
.
d.r
ent
al
ofpr
oper
t
y
.
172Fr
eeTes
tBankf
orFi
nanci
alAccount
i
ngI
FRSEdi
t
i
on2ndEdi
t
i
onby
Wey
gandtMul
t
i
pl
eChoi
ceQues
t
i
ons-Page3
Equi
t
yatDecember31,2014,i
s
1.
2.
3.
4.
a.£296,
000.
b.£242,
000.
c
.£186,
000.
d.£110,
000.
Neti
ncomef
ort
hemont
hofDecemberi
s
1.
2.
3.
4.
a.£54,
000.
b.£84,
000.
c
.£112,
000.
d.£132,
000.
Thest
at
ementoffinanci
al
posi
t
i
onatDecember31,2014r
epor
t
st
ot
all
i
abi
l
i
t
i
esof
1.
2.
3.
4.
a.€60,
000.
b.€120,
000.
c
.€156,
000.
d.€238,
000.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Dur
i
ngJul
y
,i
t
sfir
s
tper
i
odofoper
at
i
ons
,Aj
uI
nc
.sol
dor
di
nar
yshar
esf
orW960,
000,
000,
ear
nedneti
ncomeofW130,
000,
000,andpai
ddi
vi
dendsofW27,
000,
000.Equi
t
yatt
heend
ofJul
yi
s
1.
2.
3.
4.
a.W1,
090,
000,
000.
b.W1,
063,
000,
000.
c
.W933,
000,
000.
d.W103,
000,
000.
AtDecember31,2014,asset
st
ot
al
1.
2.
3.
4.
a.£108,
000.
b.£140,
000.
c
.£162,
000.
d.£194,
000.
Thest
at
ementoffinanci
al
posi
t
i
onatDecember31,2014r
epor
t
sequi
t
yof
1.
2.
3.
4.
a.€420,
000.
b.€330,
000.
c
.€180,
000.
d.€162,
000.
Dur
i
ngJul
y
,i
t
sfir
s
tper
i
odofoper
at
i
ons
,Aj
uI
nc
.sol
dor
di
nar
yshar
esf
orW960,
000,
000,
ear
nedneti
ncomeofW130,
000,
000,andpai
ddi
vi
dendsofW27,
000,
000.Ret
ai
ned
ear
ni
ngsatt
heendofJul
yi
s
1.
2.
3.
4.
a.W1,
090,
000,
000.
b.W1,
063,
000,
000.
c
.W933,
000,
000.
d.W103,
000,
000.
Dur
i
ngMar
ch,Bi
ndiCompanyear
nedr
ev
enueof€270,
000onaccountofwhi
ch€178,
000
hadbeencol
l
ect
edbyt
heendoft
hemont
h.Thecompanyi
ncur
r
edexpensesof€156,
000.
Thecompanypai
dal
l
ofi
t
sexpensesi
ncashaswel
l
aspayi
ngdi
vi
dendsof€46,
000.Net
i
ncome(
l
oss)f
ort
hemont
hi
s
1.
2.
3.
4.
a.(
€24,
000)
.
b.€22,
000.
c
.€68,
000.
d.€114,
000.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Car
t
erCompanyi
ssuedor
di
nar
yshar
est
oSam Car
t
eri
nex
changef
orhi
si
nv
est
mentof
$40,
000cashi
nt
hebusi
ness
.Thecompanyr
ecor
dedr
ev
enuesof$370,
000,expensesof
$320,
000,andpai
ddi
vi
dendsof$20,
000.WhatwasCar
t
er
'
sneti
ncomef
ort
hey
ear
?
1.
2.
3.
4.
a.$30,
000.
b.$70,
000.
c
.$50,
000.
d.$90,
000.
TheRoy’
sDownt
ownDi
nerr
ecei
v
edabi
l
l
of$400f
r
om t
heEmer
i
l
Adv
er
t
i
si
ngAgenc
y
.The
owner
,RoyJames
,i
spost
poni
ngpaymentoft
hebi
l
l
unt
i
l
al
at
erdat
e.Theeffectonspeci
fic
i
t
emsi
nt
hebasi
caccount
i
ngequat
i
oni
s
1.
2.
3.
4.
a.adecr
eas
ei
nCashandani
ncr
easei
nAccount
sPay
abl
e.
b.adec
r
easei
nCas
handani
ncr
easei
nRet
ai
nedEar
ni
ngs
.
c
.ani
ncr
easei
nAccount
sPay
abl
eandadecr
easei
nRet
ai
nedEar
ni
ngs
.
d.adecr
easei
nAccount
sPay
abl
eandani
ncr
easei
nRet
ai
nedEar
ni
ngs
.
RyderCompanypur
chases$600ofequi
pmentf
r
om Mont
ezI
nc
.f
orcash.Theeffectoft
hi
s
t
r
ansact
i
onont
hecomponent
soft
hebasi
caccount
i
ngequat
i
onofRyderCompanyi
s
1.
2.
3.
4.
a.ani
ncr
easei
nasset
sandl
i
abi
l
i
t
i
es
.
b.adec
r
easei
nasset
sandl
i
abi
l
i
t
i
es
.
c
.nochangei
nt
ot
alass
et
s
.
d.ani
ncr
easei
nass
et
sandadecr
eas
ei
nl
i
abi
l
i
t
i
es
.
AtDecember31,2014,l
i
abi
l
i
t
i
est
ot
al
1.
2.
3.
4.
a.£32,
000.
b.£52,
000.
c
.£74,
000.
d.£82,
000.
CopperCompany’
sequi
t
yatt
hebegi
nni
ngofAugust2014was$750,
000.Dur
i
ngt
he
mont
h,t
hecompanyear
nedneti
ncomeof$150,
000andpai
ddi
vi
dendsof$50,
000.Att
he
endofAugust2014,whati
st
heamountofequi
t
y
?
1.
2.
3.
4.
a.$650,
000
b.$750,
000
c
.$850,
000
d.$950,
000
Apr
opr
i
et
or
shi
pi
sabusi
ness
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.ownedbyoneper
son.
b.ownedbyt
woormor
eper
sons
.
c
.or
gani
z
edasasepar
at
el
egalent
i
t
yunderst
at
ecor
por
at
i
onl
aw.
d.ownedbyagov
er
nment
al
agenc
y
.
Al
l
oft
hefinanci
al
st
at
ement
sar
ef
oraper
i
odoft
i
meex
ceptt
he
1.
2.
3.
4.
a.i
ncomest
at
ement
.
b.r
et
ai
nedear
ni
ngsst
at
ement
.
c
.st
at
ementoffinanc
i
al
pos
i
t
i
on.
d.st
at
ementofcashflows
.
Dur
i
ngMay
,Br
unhi
l
deCompanyear
nedr
ev
enueof€212,
000,i
ncur
r
edexpensesof
€136,
000,ofwhi
ch€96,
000wer
eonaccount
,andpai
ddi
vi
dendsof€32,
000.Neti
ncome
(
l
oss)f
ort
hemont
hi
s
1.
2.
3.
4.
a.(
€40,
000)
.
b.€44,
000.
c
.€76,
000.
d.€116,
000.
Anetl
osswi
l
lr
esul
tdur
i
ngat
i
meper
i
odwhen
1.
2.
3.
4.
a.ass
et
sex
ceedl
i
abi
l
i
t
i
es
.
b.asset
sex
ceedequi
t
y
.
c
.expensesex
ceedr
ev
enues
.
d.r
ev
enuesex
ceedexpenses
.
Mi
caI
nc
.beganoper
at
i
onsi
nOct
ober
,2014.Dur
i
ngOct
ober
,Mi
casol
dor
di
nar
yshar
esf
or
€600,
000,ear
nedr
ev
enueof€66,
000,i
ncur
r
edexpensesof€36,
000,andpai
ddi
vi
dendsof
€3,
000.Equi
t
yatt
heendoft
hemont
hi
s
1.
2.
3.
4.
a.€27,
000.
b.€30,
000.
c
.€627,
000.
d.€630,
000.
Ret
ai
nedear
ni
ngsr
epor
t
edont
hest
at
ementoffinanci
alposi
t
i
onatDecember31,2014i
s
1.
2.
3.
4.
a.€330,
000.
b.€252,
000.
c
.€168,
000.
d.€162,
000.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Mi
caI
nc
.beganoper
at
i
onsi
nOct
ober
,2014.Dur
i
ngOct
ober
,Mi
casol
dor
di
nar
yshar
esf
or
€600,
000,ear
nedr
ev
enueof€66,
000,i
ncur
r
edexpensesof€36,
000,andpai
ddi
vi
dendsof
€3,
000.Ret
ai
nedear
ni
ngsatt
heendt
hemont
hi
s
1.
2.
3.
4.
a.€27,
000.
b.€30,
000.
c
.€627,
000.
d.€630,
000.
AtOct
ober1,Smi
t
hsonEnt
er
pr
i
sesr
epor
t
edequi
t
yof$210,
000.Dur
i
ngOct
ober
,capi
t
al
shar
esof$12,
000wer
ei
ssuedandt
hecompanyear
nedneti
ncomeof$36,
000.I
fequi
t
yat
Oct
ober31t
ot
al
s$240,
000,whatamountofdi
vi
dendswer
epai
ddur
i
ngt
hemont
h?
1.
2.
3.
4.
a.$0
b.$18,
000
c
.$24,
000
d.$30,
000
Ret
ai
nedear
ni
ngsatDecember31,2014i
s
1.
2.
3.
4.
a.£30,
000.
b.£44,
000.
c
.£54,
000.
d.£110,
000.
Ni
gi
r
iI
nc
.beganoper
at
i
onsonOct
ober1,2014.Dur
i
ngOct
ober
,Ni
gi
r
i
sol
dor
di
nar
yshar
es
f
or¥440,
000,
000,ear
nedneti
ncomeof¥64,
000,
000,andpai
ddi
vi
dendsof¥1,
978,
000.
Equi
t
yatt
heendofOct
oberi
s
1.
2.
3.
4.
a.¥504,
000,
000.
b.¥502,
022,
000.
c
.¥64,
000,
000.
d.¥62,
022,
000.
Equi
t
ychangedbywhatamountf
r
om t
hebegi
nni
ngoft
hey
eart
ot
heendoft
hey
ear
?
1.
2.
3.
4.
a.€60,
000
b.€56,
000
c
.€24,
000
d.€12,
000
Ni
gi
r
iI
nc
.beganoper
at
i
onsonOct
ober1,2014.Dur
i
ngOct
ober
,Ni
gi
r
i
sol
dor
di
nar
yshar
es
f
or¥440,
000,
000,ear
nedneti
ncomeof¥64,
000,
000,andpai
ddi
vi
dendsof¥1,
978,
000.
Ret
ai
nedear
ni
ngsatt
heendofOct
oberi
s
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.¥504,
000,
000.
b.¥502,
022,
000.
c
.¥64,
000,
000.
d.¥62,
022,
000.
Mostcompani
esi
nt
heUni
t
edSt
at
esf
ol
l
owst
andar
dsi
ssuedbyt
he
1.
2.
3.
4.
a.Fi
nanc
i
al
Account
i
ngSt
andar
dsBoar
d.
b.I
nt
er
nat
i
onal
Account
i
ngSt
andar
dsBoar
d.
c
.I
nt
er
nal
Rev
enueSer
vi
ce.
d.Sec
ur
i
t
i
esandEx
changeCommi
ssi
on.
Mar
i
l
uCompanybegant
hey
earwi
t
hequi
t
yof$75,
000.Dur
i
ngt
hey
ear
,Mar
i
l
ui
ssued
addi
t
i
onal
or
di
nar
yshar
esi
nex
changef
orcashof$105,
000,r
ecor
dedexpensesof
$300,
000,andpai
ddi
vi
dendsof$20,
000.I
fMar
i
l
u’
sendi
ngequi
t
ywas$230,
000,whatwas
t
hecompany’
sr
ev
enuef
ort
hey
ear
?
1.
2.
3.
4.
a.$350,
000.
b.$370,
000.
c
.$455,
000.
d.$475,
000.
Theequi
t
yatt
heendoft
hey
earwas
1.
2.
3.
4.
a.€84,
000.
b.€72,
000.
c
.€32,
000.
d.€8,
000.
Met
zger
’
sasset
sonDecember31,2014ar
e
1.
2.
3.
4.
a.€275,
000.
b.€210,
000.
c
.€120,
000.
d€135,
000.
AtOct
ober1,Smi
t
hsonEnt
er
pr
i
sesr
epor
t
edequi
t
yof$210,
000.Dur
i
ngOct
ober
,nocapi
t
al
shar
eswer
ei
ssuedandt
hecompanyear
nedneti
ncomeof$24,
000.I
fequi
t
yatOct
ober31
t
ot
al
s$192,
000,whatamountofdi
vi
dendswer
epai
ddur
i
ngt
hemont
h?
1.
2.
3.
4.
a.$0
b.$6,
000
c
.$18,
000
d.$42,
000
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Met
zger
’
sequi
t
yonDecember31,2014i
s
1.
2.
3.
4.
a.€110,
000.
b.€100,
000.
c
.€140,
000.
d.€125,
000.
Si
ngTaoI
nc
.beganoper
at
i
onsonJune2,2014.Dur
i
ngJune,Si
ngTaosol
dor
di
nar
y
shar
esf
orHK$17,
175,
000,ear
nedr
ev
enueofHK$3,
030,
000,i
ncur
r
edexpensesof
HK$1,
545,
000,andpai
ddi
vi
dendsofHK$45,
000.Ret
ai
nedear
ni
ngsatJune30,2014
1.
2.
3.
4.
a.HK$1,
440,
000.
b.HK$1,
485,
000.
c
.HK$18,
615,
000.
d.HK$20,
206,
000.
AtOct
ober1,Smi
t
hsonEnt
er
pr
i
sesr
epor
t
edequi
t
yof$210,
000.Dur
i
ngOct
ober
,capi
t
al
shar
esof$30,
000wer
ei
ssuedandt
hecompanypos
t
edanetl
ossof$18,
000.I
fequi
t
yat
Oct
ober31t
ot
al
s$210,
000,whatamountofdi
vi
dendswer
epai
ddur
i
ngt
hemont
h?
1.
2.
3.
4.
a.$0
b.$12,
000
c
.$18,
000
d.$30,
000
Pr
epar
i
ngt
axr
et
ur
nsandengagi
ngi
nt
axpl
anni
ngi
sper
f
or
medby
1.
2.
3.
4.
a.publ
i
caccount
ant
sonl
y
.
b.pr
i
v
at
eaccount
ant
sonl
y
.
c
.bot
hpubl
i
candpr
i
v
at
eaccount
ant
s
.
d.I
RSaccount
ant
sonl
y
.
Al
l
oft
hef
ol
l
owi
ngar
eser
vi
cesoffer
edbypubl
i
caccount
ant
sex
cept
1.
2.
3.
4.
a.budget
i
ng.
b.audi
t
i
ng.
c
.t
axpl
anni
ng.
d.cons
ul
t
i
ng.
Si
ngTaoi
nc
.beganoper
at
i
onsonJune2,2014.Dur
i
ngJune,Si
ngTaosol
dor
di
nar
y
shar
esf
orHK$17,
175,
000,ear
nedr
ev
enueofHK$3,
030,
000,i
ncur
r
edexpensesof
HK$1,
545,
000,andpai
ddi
vi
dendsofHK$45,
000.Equi
t
yatt
heendofJunei
s
1. a.HK$1,
440,
000.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
2. b.HK$1,
485,
000.
3. c
.HK$18,
615,
000.
4. d.HK$20,
205,
000.
Font
ai
neFoxCompanybuy
sa$12,
000v
anoncr
edi
t
.Thi
st
r
ansact
i
onwi
l
laffectt
he
1.
2.
3.
4.
a.i
ncomest
at
ementonl
y
.
b.st
at
ementoffinanc
i
al
posi
t
i
ononl
y
.
c
.i
ncomest
at
ementandr
et
ai
nedear
ni
ngss
t
at
ementonl
y
.
d.i
ncomest
at
ement
,r
et
ai
nedear
ni
ngsst
at
ement
,andst
at
ementoffinanc
i
al
posi
t
i
on.
Dur
i
ngJune,Si
ngTaoI
nc
.sol
dor
di
nar
yshar
esf
orHK$17,
175,
000,ear
nedr
ev
enueof
HK$3,
030,
000,i
ncur
r
edexpensesofHK$1,
545,
000,andpai
ddi
vi
dendsofHK$45,
000.Net
i
ncomef
orJunei
s
1.
2.
3.
4.
a.HK$1,
485,
000.
b.HK$1,
490,
000.
c
.HK$18,
615,
000.
d.HK$20,
205,
000.
Theneti
ncomer
epor
t
edbySai
r
a’
sSer
vi
ceShopf
ort
hey
earwas
1.
2.
3.
4.
a.$200,
000.
b.$250,
000.
c
.$150,
000.
d.$475,
000.
Nguy
enCompanybegant
hey
earwi
t
hequi
t
yof$434,
000.Dur
i
ngt
hey
ear
,Nguy
eni
ssued
or
di
nar
yshar
esf
or$588,
000,r
ecor
dedexpensesof$1,
680,
000,andpai
ddi
vi
dendsof
$112,
000.I
fNguy
en’
sendi
ngequi
t
ywas$1,
062,
000,whatwast
hecompany’
sr
ev
enuef
or
t
hey
ear
?
1.
2.
3.
4.
a.$1,
720,
000.
b.$1,
832,
000.
c
.$2,
308,
000.
d.$2,
420,
000.
I
nt
er
nal
user
sofaccount
i
ngi
nf
or
mat
i
oni
ncl
udeal
l
oft
hef
ol
l
owi
ngex
cept
1.
2.
3.
4.
a.companyofficer
s
.
b.i
nv
est
or
s
.
c
.mar
k
et
i
ngmanager
s
.
d.pr
oduct
i
ons
uper
vi
sor
s
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Whi
chl
i
stbel
owbes
tdescr
i
best
hemaj
orser
vi
cesper
f
or
medbypubl
i
caccount
ant
s
?
1.
2.
3.
4.
a.Bookk
eepi
ng,mer
ger
s
,budget
s
.
b.Empl
oy
eet
r
ai
ni
ng,audi
t
i
ng,bookk
eepi
ng.
c
.Audi
t
i
ng,t
ax
at
i
on,managementconsul
t
i
ng.
d.Costaccount
i
ng,pr
oduct
i
onschedul
i
ng,r
ecr
ui
t
i
ng.
Br
uni
Cor
por
at
i
onbeganoper
at
i
onsonJanuar
y1,2014.Dur
i
ngJanuar
y
,Br
uni
ear
ned
r
ev
enueof€90,
000,i
ncur
r
edexpensesof€44,
000,andpai
ddi
vi
dendsof€6,
000.Ret
ai
ned
ear
ni
ngsatt
heendt
hemont
hi
s
1.
2.
3.
4.
a.€40,
000.
b.€46,
000.
c
.€52,
000.
d.€90,
000.
Thefir
stpar
toft
heaccount
i
ngpr
ocessi
s
1.
2.
3.
4.
a.communi
cat
i
ng.
b.i
dent
i
f
yi
ng.
c
.pr
ocessi
ng.
d.r
ecor
di
ng.
Dur
i
ngOct
ober
,Mi
caI
nc
.sol
dor
di
nar
yshar
esf
or€600,
000,ear
nedr
ev
enueof€66,
000,
i
ncur
r
edexpensesof€36,
000,andpai
ddi
vi
dendsof€3,
000.Neti
ncomef
ort
hemont
hi
s
1.
2.
3.
4.
a.€27,
000.
b.€30,
000.
c
.€627,
000.
d.€630,
000.
Theneti
ncomer
epor
t
edbySt
ahl
Consul
t
i
ngf
ort
hey
earwas
1.
2.
3.
4.
a.€64,
000.
b.€44,
000.
c
.€32,
000.
d.€12,
000.
Theendi
ngr
et
ai
nedear
ni
ngsamounti
sshownon
1.
2.
3.
4.
a.t
hest
at
ementoffinanc
i
al
pos
i
t
i
ononl
y
.
b.t
her
et
ai
nedear
ni
ngsst
at
ementonl
y
.
c
.bot
ht
hei
ncomest
at
ementandt
her
et
ai
nedear
ni
ngss
t
at
ement
.
d.bot
ht
hest
at
ementoffinanci
alposi
t
i
onandt
her
et
ai
nedear
ni
ngsst
at
ement
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
AtOct
ober1,Smi
t
hsonEnt
er
pr
i
sesr
epor
t
edequi
t
yof$210,
000.Dur
i
ngOct
ober
,nocapi
t
al
shar
eswer
ei
ssuedandt
hecompanypost
edanetl
os
sof$18,
000.I
fequi
t
yatOct
ober31
t
ot
al
s$192,
000,whatamountofdi
vi
dendswer
epai
ddur
i
ngt
hemont
h?
1.
2.
3.
4.
a.$0
b.$6,
000
c
.$18,
000
d.$63,
000
Thest
at
ementoffinanci
al
posi
t
i
onatDecember31,2014r
epor
t
st
ot
alasset
sof
1.
2.
3.
4.
a.€320,
000.
b.€404,
000.
c
.€456,
000.
d.€486,
000.
Dur
i
ng2014,Li
&FungCor
por
at
i
onear
nedr
ev
enueofHK$9,
225,
000,i
ncur
r
edexpensesof
expensesofHK$6,
945,
000,andpai
ddi
vi
dendsofHK$630,
000.Neti
ncomef
or2014i
s
1.
2.
3.
4.
a.HK$1,
650,
000.
b.HK$2,
280,
000.
c
.HK$8,
595,
000.
d.HK$9,
225,
000.
OnJanuar
y1,2014,AffleckCompanyr
epor
t
edequi
t
yof$470,
000.Dur
i
ngt
hey
ear
,t
he
companypai
ddi
vi
dendsof$20,
000.AtDecember31,2014,t
heamountofequi
t
ywas
$520,
000.Whatamountofneti
ncomeornetl
osswoul
dt
hecompanyr
epor
tf
or2014?
1.
2.
3.
4.
a.Neti
ncomeof$50,
000
b.Netl
ossof$70,
000
c
.Neti
ncomeof$30,
000
d.Neti
ncomeof$70,
000
LeBat
eauCompanybeganoper
at
i
onsonMar
ch1,2014.Dur
i
ngMar
ch,LeBat
eausol
d
or
di
nar
yshar
esf
or€6,
750,
000andi
ncur
r
edanetl
ossof€915,
000.Equi
t
yatt
heendof
Mar
chi
s
1.
2.
3.
4.
a.(
€915,
000)
.
b.€5,
835,
000.
c
.€7,
665,
000.
d.cannotbedet
er
mi
nedf
r
om t
hei
nf
or
mat
i
ongi
v
en.
Whi
choft
hef
ol
l
owi
ngi
snotpar
toft
heaccount
i
ngpr
ocess
?
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1.
2.
3.
4.
a.Recor
di
ng
b.I
dent
i
f
y
i
ng
c
.Fi
nanci
aldeci
s
i
onmaki
ng
d.Communi
cat
i
ng
Beni
t
oCompanybegant
hey
earwi
t
hequi
t
yof$525,
000.Dur
i
ngt
hey
ear
,t
hecompany
r
ecor
dedr
ev
enuesof$750,
000,expensesof$570,
000,andpai
ddi
vi
dendsof$60,
000.
WhatwasBeni
t
o’
sequi
t
yatt
heendoft
hey
ear
?
1.
2.
3.
4.
a.$765,
000.
b.$645,
000.
c
.$1,
215,
000.
d.$705,
000.
Neti
ncome(
l
oss)r
epor
t
edont
hei
ncomest
at
ementf
ort
hemont
hofDecemberi
s
1.
2.
3.
4.
a.€252,
000.
b.€180,
000.
c
.€162,
000.
d.€96,
000.
Equi
t
yatt
heendoft
hey
earwas
1.
2.
3.
4.
a.$300,
000.
b.$250,
000.
c
.$200,
000.
d.$225,
000.
Apr
i
v
at
eaccount
antcanper
f
or
m manyact
i
vi
t
i
esi
nabusi
nessor
gani
z
at
i
onbutwoul
dnot
wor
ki
n
1.
2.
3.
4.
a.budget
i
ng.
b.account
i
ngi
nf
or
mat
i
ons
y
s
t
ems
.
c
.ext
er
nal
audi
t
i
ng.
d.t
axaccount
i
ng.
Audi
t
i
ngi
s
1. a.t
heex
ami
nat
i
onoffinanc
i
al
st
at
ement
sbyaCAorCPAi
nor
dert
opr
ov
i
deanopi
ni
onont
hei
raccur
acy
.
2. b.apar
tofaccount
i
ngt
hati
nv
ol
v
esonl
yr
ecor
di
ngofeconomi
cev
ent
s
.
3. c
.anar
eaofaccount
i
ngt
hati
nv
ol
v
essuchact
i
vi
t
i
esascostaccount
i
ng,budget
i
ng,andaccount
i
ng
i
nf
or
mat
i
ons
y
st
ems
.
4. d.conduct
edbyt
heSec
ur
i
t
i
esandEx
changeCommi
ssi
ont
oens
ur
et
hatr
egi
st
er
edfinanc
i
al
st
at
ement
sar
e
pr
esent
edf
ai
r
l
y
.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
Dur
i
ngJanuar
y
,Br
uni
Cor
por
at
i
onear
nedr
ev
enueof€90,
000,i
ncur
r
edexpensesof
€44,
000,andpai
ddi
vi
dendsof€6,
000.Thei
ncomes
t
at
ementwi
l
lr
epor
tneti
ncomef
ort
he
mont
hof
1.
2.
3.
4.
a.€40,
000.
b.€46,
000.
c
.€52,
000.
d.€90,
000.
Keepi
ngas
y
st
emat
i
c
,chr
onol
ogi
cal
di
ar
yofev
ent
st
hatar
emeasur
edi
ndol
l
ar
sandcent
s
i
scal
l
ed
1.
2.
3.
4.
a.communi
cat
i
ng.
b.i
dent
i
f
yi
ng.
c
.pr
ocessi
ng.
d.r
ecor
di
ng.
Thepr
i
mar
ypur
poseoft
hest
at
ementofcashflowsi
st
or
epor
t
1.
2.
3.
4.
a.acompany'
si
nv
es
t
i
ngt
r
ans
act
i
ons
.
b.acompany
'
sfinanci
ngt
r
ansact
i
ons
.
c
.i
nf
or
mat
i
onaboutcashr
ecei
pt
sandcashpayment
sofacompany
.
d.t
heneti
ncr
eas
eordecr
eas
ei
ncash.
Dur
i
ngt
hey
ear2014,Di
egoCompanyear
nedr
ev
enuesof$90,
000,hadexpensesof
$50,
000,pur
chasedasset
swi
t
hacostof$10,
000andpai
ddi
vi
dendsof$6,
000.Net
i
ncomef
ort
hey
eari
s
1.
2.
3.
4.
a.$90,
000.
b.$40,
000.
c
.$34,
000.
d.$30,
000.
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1. Hamilton Inc. changes its method of valuation of inventories from weighted-average method to first-in, first-out (FIFO)
method. Hamilton Inc. should account for this change as *
0/
1
a. A change in estimate and account for it prospectively.
b. A change in accounting policy and account for it prospectively.
c. A change in accounting policy and account for it retrospectively.
d. Account for it as a correction of an error and account for it retrospectively.
Câu trả lời đúng
c. A change in accounting policy and account for it retrospectively.
2. Change in accounting policy does not include *
1/
1
a. Change in useful life from 10 years to 7 years.
b. Change of method of valuation of inventory from FIFO to weighted-average.
c. Change of method of valuation of inventory from weighted-average to FIFO.
d. Change from the practice (convention) of paying as Christmas bonus one month’s salary to staff before the end of the year
to the new practice of paying one-half month’s salary only.
3. Voluntary change in accounting method may only be made by a company if *
Downloaded by 04 Mai Anh Tr?n (030536200008@st.buh.edu.vn)
lOMoARcPSD|10406454
1/
1
a. A new standard mandates the change in method.
b. Management prefers the new method.
c. The new method provides reliable and more relevant information.
d. There is no prohibition of the method in the standards.
Phảnhồi
Ther
equi
r
ementi
st
oi
dent
i
f
yt
heci
r
cums
t
ancest
hatmayj
us
t
i
f
yav
ol
unt
ar
ychangei
naccount
i
ngmet
hod.Ans
wer(
c)i
scor
r
ect
becauset
henewmet
hodmus
tpr
ov
i
der
el
i
abl
eandmor
er
el
ev
anti
nf
or
mat
i
on.
4. When it is difficult to distinguish between a change of estimate and a change in accounting policy, then an entity should *
0/
1
a. Treat the entire change as a change in estimate with appropriate disclosure.
b. Apportion, on a reasonable basis, the relative amounts of change in estimate and the change in accounting policy and treat
each one accordingly.
c. Treat the entire change as a change in accounting policy.
d. Since this change is a mixture of two types of changes, it is best if it is ignored in the year of the change; the entity should
then wait for the following year to see how the change develops and then treat it accordingly.
Câu trả lời đúng
a. Treat the entire change as a change in estimate with appropriate disclosure.
5. When an independent valuation expert advises an entity that the salvage value of its plant and machinery had drastically
changed and thus the change is material, the entity should *
0/
1
a. Retrospectively change the depreciation charge based on the revised salvage value.
b. Change the depreciation charge and treat it as a correction of an error.
c. Change the annual depreciation for the current year and future years.
d. Ignore the effect of the change on annual depreciation, because changes in salvage values would normally affect the future
only since these are expected to be recovered in future.
Câu trả lời đúng
c. Change the annual depreciation for the current year and future years.
6. IFRS requires changes in accounting principles to be reported *
0/
1
a. On a prospective basis.
b. On a retrospective basis.
c. By restating the financial statements.
d. By a cumulative adjustment on the income statement.
Câu trả lời đúng
b. On a retrospective basis.
Phảnhồi
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lOMoARcPSD|10406454
Ther
equi
r
ementi
st
oi
dent
i
f
yt
hei
t
em t
hatdescr
i
beshowchangesi
naccount
i
ngpr
i
nci
pl
esar
er
epor
t
edunderI
AS.Ans
wer(
b)i
s
cor
r
ectbecauseI
ASr
equi
r
eschangesi
naccount
i
ngpr
i
nci
pl
est
ober
epor
t
edbygi
v
i
ngr
et
r
ospec
t
i
v
eappl
i
cat
i
ont
ot
heear
l
i
es
t
per
i
odpr
esent
ed.Ans
wer(
a)i
si
ncor
r
ectbecauseachangei
naccount
i
nges
t
i
mat
ei
saccount
edf
oronapr
ospec
t
i
v
ebasi
si
nt
he
cur
r
entandf
ut
ur
eper
i
ods
.Ans
wer(
c)i
si
ncor
r
ectbecauser
es
t
at
ementi
sr
equi
r
edf
orer
r
or
si
nt
hefi
nanci
al
s
t
at
ement
s
.Ans
wer(
d)
i
si
ncor
r
ectbecausecumul
at
i
v
eadj
us
t
ment
sont
hei
ncomes
t
at
ementar
enotper
mi
t
t
ed.
7. Under IFRS, changes in accounting policies are *
0/
1
a. Permitted if the change will result in a more reliable and more relevant presentation of the financial statements.
b. Permitted if the entity encounters new transactions, events, or conditions that are substantively different from existing or
previous transactions.
c. Required for material transactions, if the entity had previously accounted for similar, though immaterial, transactions under
an unacceptable accounting method.
d. Required if an alternate accounting policy gives rise to a material change in assets, liabilities, or the current year net income.
Câu trả lời đúng
a. Permitted if the change will result in a more reliable and more relevant presentation of the financial statements.
Phảnhồi
Ther
equi
r
ementi
st
os
el
ectt
hei
t
em t
hatdescr
i
beswhenchangesi
naccount
i
ngpol
i
ci
esar
eper
mi
t
t
edorr
equi
r
ed.Ans
wer(
a)i
s
cor
r
ectbecausechangesar
eper
mi
t
t
edi
fi
twi
l
lr
esul
ti
namor
er
el
i
abl
eandmor
er
el
ev
antpr
esent
at
i
onoft
hefi
nanci
als
t
at
ement
s
.
IAS 1: FINANCIAL STATEMENT PRESENTATION
1.Which of the following(s) is the basis for classification of assets as current or non-current as per IAS 1 Paragraph 66 *
i. an entity expects to realise the asset or intends to sell or consume it in the normal operating cycle;
ii. the entity holds the asset primarily for the purpose of trading;
iii. the entity expects to realise the asset within twelve months after the reporting period;
iv. the asset is a cash or cash equivalent (as defined in IAS7) unless the asset is restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period.
v. i and iv
vi. all the above
vii. iii and iv
2.Para 10 (a) of IAS1 requires the statement of changes in equity to be shown as part of the balance sheet. How should such
presentation be made? *
i. It will be appropriate to present separately from the balance sheet, a statement titled “statement of changes in equity
forming part of balance sheet”.
ii. It will be appropriate to present changes in equity within the balance sheet under the head Equity.
iii. It will be appropriate to present within the balance sheet under the head Reserve and Surplus.
3. It is not acceptable to disclose information required by IAS 1 in management/directors’ Report forming part of annual
report without making such disclosures in the financial statements? *
i. True
ii. False
Par
agr
aphs13and14ofI
AS1gi
v
eex
ampl
esofv
ar
i
ousr
epor
t
st
hatent
i
t
i
espr
esentout
si
det
hefinanci
als
t
at
ement
s
,e.
g.
,fi
nanci
al
r
ev
i
ewbymanagement
,env
i
r
onment
al
r
epor
t
s
,v
al
ueaddeds
t
at
ement
s
,et
c
.Par
agr
aph14ofI
AS1s
t
at
es“
r
epor
t
sands
t
at
ement
s
pr
esent
edout
si
det
hefi
nanci
al
s
t
at
ement
sar
eout
si
det
hes
copeofI
AS”
.I
nf
or
mat
i
onappear
i
ngi
nr
epor
t
spr
esent
edout
si
det
he
financi
als
t
at
ement
smayr
epeati
nf
or
mat
i
ongi
v
eni
nt
hefi
nanci
al
s
t
at
ement
sordr
awr
ef
er
encet
ot
hes
ame.Howev
er
,financi
al
s
t
at
ement
scannotomi
tanydi
scl
osur
esr
equi
r
edbyI
ASsbecausei
ti
si
ncl
udedi
not
herr
epor
t
sout
si
det
hefinanci
als
t
at
ement
s
.
Ev
endr
awi
ngr
ef
er
encet
ot
hei
nf
or
mat
i
ongi
v
eni
nt
her
epor
t
sout
si
det
hefinanci
als
t
at
ement
swoul
dnotbesuffici
entunl
es
s
per
mi
t
t
edbyanI
AS.
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lOMoARcPSD|10406454
4. An entity cannot claim compliance with IASs if it has not complied with one or more IASs and its financial statements
state the fact that the entity complies with IASs, except for compliance with one or more Standards? *
i. True
ii. False
Par
agr
aph16ofI
AS1s
t
at
est
hatanent
i
t
ywhosefi
nanci
al
s
t
at
ement
scompl
ywi
t
hI
ASsshal
lmak
eanexpl
i
ci
tand
unr
eser
v
eds
t
at
ementofsuchcompl
i
ancei
nt
henot
es
.Anent
i
t
yshal
lnotdes
cr
i
befi
nanci
al
s
t
at
ement
sascompl
yi
ngwi
t
hI
ASs
unl
es
st
heycompl
ywi
t
hal
l
t
her
equi
r
ement
sofI
ASs
.Ther
ef
or
e,unl
es
sal
l
t
her
equi
r
ement
sofI
ASsar
ecompl
i
edwi
t
h,t
heent
i
t
y
cannotcl
ai
m compl
i
ancewi
t
ht
heI
ASs
.
5. An entity prepares its financial statements that contain an explicit and unreserved statement of compliance with IASs.
However, the auditor’s report on those financial statements contains a qualification because of disagreement on application
of one Accounting Standard. In such case, it is acceptable for the entity to make an explicit and unreserved statement of
compliance with IASs. *
i. True
ii. False
Qual
i
ficat
i
onbecauseofdi
s
agr
eementonappl
i
cat
i
onofaccount
i
ngs
t
andar
d(
s)
,ast
hepr
epar
at
i
onoffinanci
al
s
t
at
ement
si
st
hepr
er
ogat
i
v
eoft
hemanagement
.
6. Offsetting of revenue against expenses, permissible in case of a company acting as an agent and having sub agents, where
commission is paid to sub agents from the commission received as an agent. *
i. True
ii. False
Netpr
esent
at
i
oni
nt
hegi
v
enc
asewoul
dnotbeappr
opr
i
at
e,asi
twoul
dnotr
eflectsubs
t
anceoft
het
r
ans
act
i
onandwoul
ddet
r
act
f
r
om t
heabi
l
i
t
yofuser
st
ounder
s
t
andt
het
r
ans
act
i
on.Ther
ef
or
e,commi
s
si
onpai
dt
osubagentshoul
dnotbeoffsetagai
ns
t
commi
s
si
onear
nedbyt
hecompany
.
]
[Par
a32,33and35ofI
AS1
PROVISIONS, CONTINGENT LIABILITIES, AND CONTINGENT ASSETS (IAS 37)
1. When can a “provision” be recognized in accordance with IAS 37? *
a. When there is a legal obligation arising from a past (obligating) event, the probability of
b. the outflow of resources is more than remote (but less than probable), and a reliable estimate can be made of the amount of
the obligation.
c. When there is a constructive obligation as a result of a past (obligating) event, the outflow of resources is probable, and a
reliable estimate can be made of the amount of the obligation.
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lOMoARcPSD|10406454
d. When there is a possible obligation arising from a past event, the outflow of resources is probable, and an approximate
amount can be set aside toward the obligation.
e. When management decides that it is essential that a provision be made for unforeseen circumstances and keeping in mind
this year the profits were enough but next year there may be losses.
2. Amazon Inc. has been served a legal notice on December 15, 20X1, by the local environmental protection agency (EPA)
to fit smoke detectors in its factory on or before June 30, 20X2 (before June 30 of the following year). The cost of fitting
smoke detectors in its factory is estimated at $250,000. How should Amazon Inc. treat this in its financial statements for the
year ended December 31, 20X1? *
a. Recognize a provision for $250,000 in the financial statements for the year ended December31, 20X1.
b. Recognize a provision for $125,000 in the financial statements for the year ended December31, 20X1, because the other
50% of the estimated amount will be recognized next year in the financial statement for the year ended December 31, 20X2.
c. Because Amazon Inc. can avoid the future expenditure by changing the method of operations and thus there is no present
obligation for the future expenditure, no provision is required at December 31, 20X1, but as there is a possible obligation, this
warrants disclosure in footnotes to the financial statements for the year ended December 31,20X1.
d. Ignore this for the purposes of the financial statements for the year ended December 31,20X1, and neither disclose nor
provide the estimated amount of $250,000.
3. A competitor has sued an entity for unauthorized use of its patented technology. The amount that the entity may be
required to pay to the competitor if the competitor succeeds in the lawsuit is determinable with reliability, and according to
the legal counsel it is less than probable (but more than remote) that an outflow of the resources would be needed to meet
the obligation. The entity that was sued should at year end: *
a. Recognize a provision for this possible obligation.
b. Make a disclosure of the possible obligation in footnotes to the financial statements.
c. Make no provision or disclosure and wait until the lawsuit is finally decided and then expense the amount paid on settlement,
if any.
d. Set aside, as an appropriation, a contingency reserve, an amount based on the best estimate of the possible liability.
4. A factory owned by XYZ Inc. was destroyed by fire. XYZ Inc. lodged an insurance claim for the value of the factory
building, plant, and an amount equal to one year’s net profit. During the year, there were a number of meetings with the
representatives of the insurance company. Finally, before year-end, it was decided that XYZ Inc. would receive
compensation for 90% of its claim. XYZ Inc. received a letter that the settlement check for that amount had been mailed,
but it was not received before year-end. How should XYZ Inc. treat this in its financial statements? *
a. Disclose the contingent asset in the footnotes.
b. Wait until next year when the settlement check is actually received and not recognize or disclose this receivable at all since
at year-end it is a contingent asset.
c.. Because the settlement of the claim was conveyed by a letter from the insurance company that also stated that the
settlement check was in the mail for 90% of the claim, record 90% of the claim as a receivable as it is virtually certain that the
contingent asset will be received.
d. Because the settlement of the claim was conveyed by a letter from the insurance company that also stated that the
settlement check was in the mail for 90% of the claim,record 100% of the claim as a receivable at year-end as it is virtually
certain that the contingent asset will be received, and adjust the 10% next year when the settlement check is actually received.
5. The board of directors of ABC Inc. decided on December 15, 20XX, to wind up international operations in the Far East
and move them to Australia. The decision was based on a detailed formal plan of restructuring as required by IAS 37. This
decision was conveyed to all workers and management personnel at the headquarters in Europe. The cost of restructuring
the operations in the Far East as per this detailed plan was $2 million. How should ABC Inc. treat this restructuring in its
financial statements for the year-end December 31, 20XX? *
a. Because ABC Inc. has not announced the restructuring to those affected by the decision and thus has not raised an
expectation thatABC Inc. will actually carry out the restructuring (and as no constructive obligation has arisen), only disclose
the restructuring decision and the cost of restructuring of $2 million in footnotes to the financial statements.
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b. Recognize a provision for restructuring since the board of directors has approved it and it has been announced in the
headquarters of ABC Inc. in Europe.
c. Mention the decision to restructure and the cost involved in the chairman’s statement in the annual report since it a decision
of the board of directors.
d. Because the restructuring has not commenced before year-end, based on prudence, wait until next year and do nothing in
this year’s financial statements.
I
MPAI
RMENTOFASSETS(
I
AS36)
1.I
AS36appl
i
est
owhi
choft
hef
ol
l
owi
ngasset
s
?*
a. Inventories.
b. Financial assets.
c. Assets held for sale.
d. Property, plant, and equipment.
2.Val
uei
nusei
s*
a. The market value.
b. The discounted present value of future cash flows arising from use of the asset and from its disposal.
c. The higher of an asset’s fair value less cost to sell and its market value.
d. The amount at which the asset is recognized in the balance sheet.
3.I
ft
hef
ai
rv
al
uel
esscost
st
osel
lcannotbedet
er
mi
ned*
a. The asset is not impaired.
b. The recoverable amount is the value-in-use.
c. The net realizable value is used.
d. The carrying value of the asset remains the same.
4.I
fasset
sar
et
obedi
sposedof*
a. The recoverable amount is the fair value less costs to sell.
b. The recoverable amount is the value-in-use.
c. The asset is not impaired.
d. The recoverable amount is the carrying value.
5.Est
i
mat
esoff
ut
ur
ecashflowsnor
mal
l
ywoul
dcov
erpr
oj
ect
i
onsov
eramaxi
mum of*
a. Five years.
b. Ten years.
c. Fifteen years.
d. Twenty years.
1.Anent
i
t
ypur
chasesabui
l
di
ngandt
hesel
l
eraccept
spaymentpar
t
l
yi
nequi
t
yshar
esandpar
t
l
yi
ndebent
ur
es
oft
heent
i
t
y
.Thi
st
r
ansact
i
onshoul
dbet
r
eat
edi
nt
hecashflowst
at
ementasf
ol
l
ows:*
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lOMoARcPSD|10406454
1/
1
a. The purchase of the building should be investing cash outflow and the issuance of shares and the debentures financing cash
outflows.
b. The purchase of the building should be investing cash outflow and the issuance of debentures financing cash outflows while
the issuance of shares investing cash outflow.
c. This does not belong in a cash flow statement and should be disclosed only in the footnotes to the financial statements.
d. Ignore the transaction totally since it is a noncash transaction. No mention is required in either the cash flow statement or
anywhere else in the financial statements.
2.Anent
i
t
y(
ot
hert
hanafinanci
ali
nst
i
t
ut
i
on)r
ecei
v
esdi
vi
dendsf
r
om i
t
si
nv
est
menti
nshar
es.Howshoul
di
t
di
scl
oset
hedi
vi
dendsr
ecei
v
edi
nt
hecashflowst
at
ementpr
epar
edunderI
AS7?*
1/
1
a. Operating cash inflow.
b. Either as operating cash inflow or as investing cash inflow.
c. Either as operating cash inflow or as financing cash inflow.
d. As an adjustment in the “operating activities” section of the cash flow because it is included in the net income for the year
and as a cash inflow in the “financing activities” section of the cash flow statement.
3.Howshoul
dgai
nonsal
eofanofficebui
l
di
ngownedbyt
heent
i
t
ybepr
esent
edi
nacashflowst
at
ement
?*
1/
1
a. As an inflow in the investing activities section of the cash flow because it pertains to a long-term asset.
b. As an inflow in the “financing activities” section of the cash flow statement because the building was constructed with a longterm loan from a bank that needs to be repaid from the sale proceeds.
c. As an adjustment to the net income in the “operating activities” section of the cash flow statement prepared under the
indirect method.
d. Added to the sale proceeds and presented in the “investing activities” section of the cash flow statement.
4.Howshoul
danunr
eal
i
z
edgai
nonf
or
ei
gncur
r
enc
yt
r
ansl
at
i
onbepr
esent
edi
nacashflowst
at
ement
?*
0/
1
a. As an inflow in the “financing activities” section of the cash flow statement because it arises from a foreign currency
translation.
b. It should be ignored for the purposes of the cash flow statement, as it is an unrealized gain.
c. It should be ignored for the purposes of the cash flow statement as it is an unrealized gain but it should be disclosed in the
footnotes to the financial statements by way of abundant precaution.
d. As an adjustment to the net income in the “operating activities” section of the statement of cash flows.
Câu trả lời đúng
d. As an adjustment to the net income in the “operating activities” section of the statement of cash flows.
5.Howshoul
dr
epaymentofal
ongt
er
ml
oancompr
i
s
i
ngr
epaymentoft
hepr
i
nci
palamountandi
nt
er
estduet
o
dat
eont
hel
oanbet
r
eat
edi
nacashflowst
at
ement
?*
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0/
1
a. The repayment of the principal portion of the loan is a cash flow belonging in the “investing activities” section; the interest
payment belongs either in the “operating activities” section or the “financing activities” section.
b. The repayment of the principal portion of the loan is a cash flow belonging in the “investing activities” section; the interest
payment belongs either in the “operating activities” section or the “investing activities” section.
c. The repayment of the principal portion of the loan is a cash flow belonging in the “investing activities” section; the interest
payment belongs in the “operating activities” section (because IAS 7 does not permit any alternatives in case of interest
payments).
d. The repayment of the principal portion of the loan is a cash flow belonging in the “investing activities” section; the interest
payment should be netted against interest received on bank deposits, and the net amount of interest should be disclosed in the
“operating activities” section.
Câu trả lời đúng
a. The repayment of the principal portion of the loan is a cash flow belonging in the “investing activities” section; the interest
payment belongs either in the “operating activities” section or the “financing activities” section.
6.Gl
endaCor
por
at
i
onpr
epar
esi
t
sfinanci
alst
at
ement
si
naccor
dancewi
t
hI
FRS.Gl
endamustr
epor
tfinance
cost
sont
hest
at
ementofcashflows*
0/
1
a. In operating activities.
b. Either in operating activities or financing activities.
c. In financing activities.
d. In investing activities or financing activities.
Câu trả lời đúng
b. Either in operating activities or financing activities.
Phảnhồi
Fi
nancecos
t
s(
i
nt
er
es
texpense)mayber
epor
t
edi
nei
t
hert
heoper
at
i
ngorfinanci
ngs
ect
i
onoft
hes
t
at
ementofc
ashfl
ows
.
Howev
er
,oncei
ti
sdi
scl
osedi
napar
t
i
cul
arsec
t
i
on,i
tmus
tber
epor
t
edonaconsi
s
t
entbasi
s
.
7.Lar
i
merCor
por
at
i
onpr
epar
esi
t
sfinanci
alst
at
ement
si
naccor
dancewi
t
hI
FRS.Lar
i
meracqui
r
edequi
pment
byi
ssui
ng5,
000shar
esofi
t
scommonst
ock.Howt
hi
st
r
ansact
i
onber
epor
t
edont
hest
at
ementofcashflows
?*
0/
1
a. As an outflow of cash from investing activities and inflow of cash from financing activities.
b. As an inflow of cash from financing activities and an out flow of cash from operating activities.
c. At the bottom of the statement of cash flows as a significant noncash transaction.
d. In the notes to the financial statements as a significant noncash transaction.
Câu trả lời đúng
d. In the notes to the financial statements as a significant noncash transaction.
Phảnhồi
Thi
st
r
ansac
t
i
ondi
dnoti
nv
ol
v
eanex
changeofc
ash;t
her
ef
or
e,i
ti
snoti
ncl
udedont
hes
t
at
ementofcashflows
.I
AS7r
equi
r
est
hat
si
gni
ficantnoncasht
r
ans
act
i
onsber
epor
t
edi
nt
henot
est
ot
hefi
nanci
als
t
at
ement
s
.
]
1.I
nv
ent
or
yshoul
dbest
at
edat*
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lOMoARcPSD|10406454
1/
1
a. Lower of cost and fair value.
b. Lower of cost and net realizable value.
c. Lower of cost and nominal value.
d. Lower of cost and net selling price.
e. Choices b and d.
f. Choices a and c.
g. Choices a, b, and d.
2.Whi
choft
hef
ol
l
owi
ngcost
sofconv
er
si
oncannotbei
ncl
udedi
ncostofi
nv
ent
or
y?*
1/
1
a. Cost of direct labour.
b. Factory rent and utilities.
c. Salaries of sales staff (sales department shares the building with factory supervisor).
d. Factory overheads based on normal capacity.
3.I
nv
ent
or
i
esar
easset
s*
0/
1
a. Used in the production or supply of goods and services for administrative purposes.
b. Held for sale in the ordinary course of business.
c. Held for long-term capital appreciation.
d. In the process of production for such sale.
e. In the form of materials or supplies to be consumed in the production process or the rendering of services.
f. Choices b and d.
g. Choices b, d, and e.
Câu trả lời đúng
g. Choices b, d, and e.
4.Whi
choft
hef
ol
l
owi
ngi
t
emsar
eex
cl
udedf
r
om t
hescopeofI
AS2–I
nv
ent
or
i
es
?*
0/
1
a) Agricultural produce at the point of harvest
b) Inventories that are stated at Net Realisable Value
c) Assets held for sale in the ordinary course of business
d) Inventories whose fair value is more than the cost
Câu trả lời đúng
a) Agricultural produce at the point of harvest
Phảnhồi
Agr
i
cul
t
ur
alpr
oduceatt
hepoi
ntofhar
v
es
ti
sdeal
twi
t
hunderI
AS41–Agr
i
cul
t
ur
e.Oncet
hepr
oducei
shar
v
es
t
ed,i
ti
sr
ecor
ded
underI
AS2
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lOMoARcPSD|10406454
5.FARWESTI
NC.manuf
act
ur
esandsel
l
spaperenv
el
opes.Thest
ockofenv
el
opeswasi
ncl
udedi
nt
hecl
osi
ng
i
nv
ent
or
yasofDecember31,2013,atacostof$50eachperpack.Dur
i
ngt
hefinalaudi
t
,t
heaudi
t
or
snot
edt
hat
t
hesubsequentsal
epr
i
cef
ort
hei
nv
ent
or
yatJanuar
y15,2014,was$40eachperpack.Fur
t
her
mor
e,i
nqui
r
y
r
ev
eal
st
hatdur
i
ngt
hephy
si
calst
ockt
ak
e,awat
erl
eakagehascr
eat
eddamagest
ot
hepaperandt
hegl
ue.
Accor
di
ngl
y
,i
nt
hef
ol
l
owi
ngweek,FARWESTI
NC.spentat
ot
alof$15perpackf
orr
epai
r
i
ngandr
eappl
yi
ng
gl
uet
ot
heenv
el
opes.Thenetr
eal
i
zabl
ev
al
ueandi
nv
ent
or
ywr
i
t
edown(
l
oss)amountt
o*
0/
1
a. $40 and $10 respectively.
b. $45 and $10 respectively.
c. $25 and $25 respectively.
d. $35 and $25 respectively.
e. $30 and $15 respectively.
Câu trả lời đúng
e. $30 and $15 respectively.
Phảnhồi
netr
eal
i
z
abl
ev
al
uei
st
hesubsequents
al
epr
i
ce,$40,l
es
sanycos
ti
ncur
r
edt
obr
i
ngt
hegoodt
oi
t
ss
al
abl
econdi
t
i
on,$15.Thus
,
NRV=$40–$15=$25perpack
.Thel
os
s(
i
nv
ent
or
ywr
i
t
edown)perpacki
st
hedi
ffer
encebet
weencos
tandnetr
eal
i
z
abl
ev
al
ue:
$50–$25=$25perpack
.
6.
WanderLi
mi
t
edhadi
nv
ent
or
ywi
t
hacostof$10,
000att
heendoft
hefinanci
alper
i
od,31December2013.I
t
est
i
mat
edt
henetr
eal
i
sabl
ev
al
ueoft
hi
si
nv
ent
or
ywas$9,
000at31December
.Oneweekl
at
er
,t
hei
nv
ent
or
y
wassol
df
or$7,
000.
I
ft
hei
rfinanci
alst
at
ement
swer
efinal
i
sedon14Febr
uar
y2014,whatv
al
ueshoul
dbe
assi
gnedt
ot
hi
si
nv
ent
or
y*
1/
1
a) $10,000
b) $9,000
c) $7,000
d) None of these
Phảnhồi
Thei
nv
ent
or
ywassol
dj
us
toneweekaf
t
ert
heendoft
hefi
nanci
al
per
i
od.Thechangei
nv
al
ueconfir
medcondi
t
i
onsexi
s
t
i
ngatt
he
endoft
heper
i
od.Wecanas
sumet
hev
al
ueoft
hi
si
nv
ent
or
yat31December2013wasact
ual
l
y$7,
000.
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