1. Which of the following is not a duty of the International Financial Reporting Standard (IFRS)
interpretations Committee?
a. To interpret the application of IFRS
b. To work directly with national standard setters to bring about convergence with IFRS
c. To provide guidance on financial reporting issues not specifically addressed in IFRSs
d. To publish draft interpretations for public comment
2. The process for developing an IFRS involves a number of stages. Following receipt and review of
comments on a Discussion Paper, what will be the next step undertaken by the IASB?
a. Publication of an Exposure Draft
b. Establishment of an Advisory Committee
c. Consultation with the Advisory Committee
d. Issue a final IFRS
3. Which one of the following would be recognized as an investment property under IAS40 in the
consolidated financial statements of ReyesCo?
a. A property intended for sale in the ordinary course of business
b. A property being constructed for a customer
c. A property held by ReyesCo as a right-of-use asset and leased out under a six-month lease
d. A property owned by ReyesCo and leased out to a subsidiary
4. ReyesCo is developing a new product and expects to be able to capitalize the costs. Which one of
the following would preclude capitalization of the costs?
a. Development of the product is not yet complete
b. No patent has yet been registered in respect of the product
c. No sales contracts have yet been signed in relation to the product
d. It has not been possible to reliably allocate costs to development of the product
5. IAS 1 — Presentation of Financial Statements
What is the primary concern of IAS 1?
a. Leases
b. Insurance Contracts
c. Presentation of Financial Statements
d. Accounting Policies and Errors
6. Which of these is NOT a requirement by IAS 1 for financial statements?
a. Statement of profit or loss
b. Statement of lease agreements
c. Statement of cash flows
d. Statement of financial position
7. The amendments to IAS 1 are effective for reporting periods beginning on or after:
a. January 1, 2021
b. January 1, 2022
c. January 1, 2023
d. January 1, 2024
8. IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
IAS 8 provides guidance on:
a. Recognizing leases
b. Presenting insurance contracts
c. Reflecting corrections of prior period errors
d. Developing lessee accounting models
9. Changes in accounting estimates under IAS 8 are generally accounted for on a:
a. Retrospective basis
b. Prospective basis
c. Current basis
d. Non-current basis
10. IFRS 16 — Leases
The standard IFRS 16 primarily provides details about:
a. Insurance contracts
b. Presentation of Financial Statements
c. Accounting Policies and Errors
d. Recognizing, measuring, and presenting leases
11. What exception is provided in IFRS 16 regarding the recognition of assets and liabilities for
leases?
a. If the underlying asset has a high value
b. If the lease term is more than 12 months
c. If the underlying asset has a low value
d. None of the above
12. Lessor accounting in IFRS 16:
a. Has changed significantly from IAS 17
b. Remains largely unchanged from IAS 17
c. Now includes a double lessee model
d. None of the above
13. IFRS 17 — Insurance Contracts
The main goal of IFRS 17 is to:
a. Set out requirements for financial statements
b. Provide relevant info representing insurance contracts
c. Highlight errors in accounting policies
d. Define lease agreements
14. The amendments for IFRS 17 are effective for annual reporting periods beginning on or after:
a. January 1, 2021
b. January 1, 2022
c. January 1, 2023
d. January 1, 2024
15. The IASB has deferred the effective date of IFRS 17 to:
a. January 1, 2019
b. January 1, 2020
c. January 1, 2021
d. January 1, 2022
16. When were the amendments to IAS 8 effective?
a. January 1, 2011
b. January 1, 2019
c. January 1, 2023
d. January 1, 2024
17. Which standard is applied in selecting and applying accounting policies?
a. IFRS 16
b. IFRS 17
c. IAS 1
d. IAS 8
18. What is retained in IFRS 16 from IAS 17?
a. Single lessee accounting model
b. Distinction between operating and finance leases
c. Both a and b
d. None of the above
19. The IASB has also published an amendment to defer the fixed expiry date of IFRS 9 to:
a. January 1, 2021
b. January 1, 2022
c. January 1, 2023
d. January 1, 2024
20. The overarching concepts of IAS 1 include all EXCEPT:
a. Going concern
b. Accrual basis of accounting
c. Lessee accounting model
d. Current/non-current distinction
21. IAS 8 requires compliance with any specific:
a. Lease
b. Insurance contract
c. IFRS applying to a transaction, event, or condition
d. Financial presentation model
22. Which standard specifically deals with insurance contracts?
a. IAS 1
b. IAS 8
c. IFRS 16
d. IFRS 17
23. IFRS 16's amendments are effective for annual reporting periods beginning on or after:
a. January 1, 2019
b. January 1, 2020
c. January 1, 2023
d. January 1, 2024
24. Which standard sets out the overall requirements for financial statements?
a. IFRS 16
b. IFRS 17
c. IAS 1
d. IAS 8
25. What is the objective of IAS 1 - Presentation of Financial Statements?
a. To prescribe specific accounting policies
b. To ensure comparability of financial statements
c. To establish disclosure requirements
d. To define materiality criteria
26. Which financial statements are required as part of a complete set of financial statements under
IAS 1?
a. Statement of profit or loss and statement of cash flows
b. Statement of cash flows and statement of changes in equity
c. Statement of financial position and statement of profit or loss
d. Statement of changes in equity and statement of comprehensive income
27. When must an entity present a statement of financial position at the beginning of the earliest
comparative period?
a. Only when reclassifying items in financial statements
b. When making a retrospective restatement of items
c. When applying accounting policies retrospectively
d. In all financial statements
28. Which of the following reports is outside the scope of IFRSs according to IAS 1?
a. Financial reviews by management
b. Environmental reports
c. Value added statements
d. All of the above
29. How should an entity describe the level of rounding used in its financial statements?
a. In a separate section within the notes
b. In the statement of profit or loss
c. In the statement of changes in equity
d. On the face of the statement of financial position
30. Which of the following is a primary financial statement required by IAS 1?
a. Statement of compliance with IFRSs
b. Statement of environmental performance
c. Statement of changes in equity
d. Statement of fair presentation
31. According to IAS 1, when should an entity depart from an IFRS requirement, and what
disclosures are required in such cases?
a. Only in extremely rare circumstances; detailed disclosure of nature and reasons
b. In all cases where it conflicts with the Framework; no disclosure required
c. When it results in a net loss; general disclosure of departure
d. When requested by an external auditor; no disclosure required
32. Under the Conceptual Framework, how are financial statements normally prepared?
a. Assuming the entity is a going concern
b. Assuming the entity is in financial distress
c. Assuming the entity will liquidate its assets
d. Assuming the entity will merge with another entity
33. What basis of accounting does IAS 1 require for the preparation of financial statements?
a. Accrual basis
b. Cash basis
c. Modified accrual basis
d. Hybrid basis
34. According to IAS 1, when can assets and liabilities be offset in financial statements?
a. Always, as long as it improves presentation
b. Only when required by an IFRS
c. Only when permitted by an IFRS
d. Never, under any circumstances
35. What is the presumption regarding the frequency of preparing financial statements under IAS 1?
a. Biennially
b. Quarterly
c. Annually
d. Whenever the entity chooses
36. How does IAS 1 require an entity to classify assets and liabilities in the statement of financial
position?
a. Based on their market value
b. Based on their historical cost
c. Based on their liquidity
d. Based on their age
37. What are current assets according to IAS 1?
a. Assets held for more than 12 months
b. Assets expected to be realized in the normal operating cycle
c. Assets primarily held for trading purposes
d. All of the above
38. When is a long-term debt classified as non-current, even if it would otherwise be due within 12
months?
a. When it is not expected to be refinanced
b. When it is expected to be refinanced under an existing loan facility
c. When it is due to be settled within the normal operating cycle
d. When it is due to be settled within 6 months
39. Which of the following is a line item that must be included on the face of the statement of
financial position according to IAS 1?
a. R&D expenses
b. Goodwill
c. Operating income
d. Non-controlling interests
40. How should subtotals be presented in the financial statements according to IAS 1?
a. In an unclear and confusing manner
b. Consistently from period to period
c. Without any labels
d. With more prominence than required subtotals and totals
41. What is the definition of profit or loss according to IAS 1?
a. The total of income plus expenses
b. The total of other comprehensive income
c. The total of income minus expenses, excluding other comprehensive income
d. The change in equity resulting from transactions with owners
42. What is the definition of comprehensive income according to IAS 1?
a. The total of income minus expenses
b. The total of other comprehensive income
c. The total of profit or loss and other comprehensive income
d. The total of income plus expenses
43. What information is required regarding share capital and reserves under IAS 1?
a. Description of the entity's customers
b. Description of employee benefits
c. Description of related party transactions
d. Description of rights, preferences, and restrictions
44. When may an entity use a net asset presentation in its financial statements according to IAS 1?
a. Always, as it is the preferred presentation method
b. Only when presenting financial statements to creditors
c. When the entity has no liabilities
d. When the entity chooses to do so
45. What method of accounting for income taxes is implemented by IAS 12?
a. Direct payment method
b. Comprehensive income statement method
c. Comprehensive balance sheet method
d. Deferred accounting method
46. Which of the following are recognized under IAS 12?
a. Current tax liabilities only
b. Deferred tax assets only
c. Both current tax consequences and future tax consequences
d. Neither current nor future tax consequences
47. When was IAS 12 reissued?
a. October 1978
b. October 1994
c. October 1996
d. October 2000
48. What is the effective date for the application of the reissued IAS 12?
a. 1 January 1979
b. 1 January 1989
c. 1 January 1998
d. 1 January 2000
49. What is the 'tax base' as defined in IAS 12?
a. The carrying amount of an asset or liability
b. The amount attributed to an asset or liability for tax purposes
c. The difference between carrying amount and tax-related amount
d. The value of the asset or liability recognized in the income statement
50. What are 'temporary differences'?
a. Differences that exist between the carrying amount of an asset or liability and its tax bases
b. Differences in taxation rates between countries
c. Short-term variations in tax payment methods
d. Temporary tax incentives provided by governments
51. What are 'deferred tax liabilities'?
a. The amounts of income taxes payable in previous periods
b. Taxes that are payable in the distant future
c. The amounts of income taxes payable in future periods due to taxable temporary
differences
d. Liabilities that are deferred for accounting purposes but recognized for tax purposes
52. How is 'current tax' for the current and prior periods recognized?
a. As an asset only
b. As a liability to the extent it has not yet been settled
c. As both an asset and a liability
d. Neither as an asset nor as a liability
53. How are current tax assets and liabilities measured?
a. Using rates/laws predicted for the future
b. Using historical tax rates
c. Using rates/laws that have been substantively enacted by the income statement date
d. Using standard global tax rates
54. What is crucial in determining the amount of any temporary difference?
a. Carrying amount
b. Tax rate
c. Tax base
d. Recognition principle
55. What is the tax base of an asset that has no tax consequences upon recovery?
a. Equal to the carrying amount
b. Nil
c. Equal to half the carrying amount
d. Determined by tax authorities
56. When was the IFRIC 23 Uncertainty over Income Tax Treatments issued?
a. 7 June 2017
b. 12 December 2017
c. 10 September 2010
d. 31 March 2009
57. What is the main objective of IAS 12?
a. To determine tax rates globally
b. To prescribe the accounting treatment for income taxes
c. To define tax-related terms and methods
d. To provide guidance on the calculation of tax payable
58. According to IAS 12, when should an entity account for the tax consequences of transactions?
a. Only at year-end
b. In the same way it accounts for the transactions themselves
c. As separate items in the balance sheet
d. Only when the tax rate changes
59. What is the formula for calculating 'deferred tax asset or liability'?
a. Temporary difference x Carrying amount
b. Carrying amount - Tax base
c. Temporary difference x Tax rate
d. Carrying amount x Tax rate
60. When are deferred tax liabilities generally recognized?
a. For all deductible temporary differences
b. For all taxable temporary differences
c. Only when the tax rate changes
d. Only for international transactions
61. Which of the following is an exception to the recognition of deferred tax liabilities?
a. Liabilities arising from future predictions
b. Liabilities arising from initial recognition of goodwill
c. Liabilities arising from recognized assets
d. Liabilities from standard business operations
62. When is a deferred tax asset recognized for deductible temporary differences?
a. Always
b. Only when it's not related to a business combination
c. When it's probable that taxable profit will be available against which they can be utilized
d. Only in consolidated financial statements
63. What are 'taxable temporary differences'?
a. Differences that will result in deductible amounts in future
b. Differences that will result in taxable amounts in future
c. Differences that exist only in the income statement
d. Differences related to past tax payments
64. In the context of IAS 12, what does 'current tax' refer to?
a. Tax payable or receivable in the current year
b. Tax payable in the coming year
c. Tax based on current assets
d. Tax recognized in the current financial statement
65. When was the amendment regarding "Deferred Tax related to Assets and Liabilities arising from
a Single Transaction" effective?
a. 1 January 2017
b. 1 January 2019
c. 1 January 2021
d. 1 January 2023
66. Which Interpretation relates to "Uncertainty over Income Tax Treatments"?
a. IFRIC 7
b. IFRIC 23
c. SIC-21
d. SIC-25
67. What are "deductible temporary differences"?
a. Differences that will result in taxable amounts in future
b. Differences that will result in amounts deductible in future
c. Differences recognized for tax purposes
d. Differences that affect the carrying amount
68. What is the treatment for the benefit of a tax loss which can be carried back to recover current
tax of a prior period?
a. Recognized as an asset
b. Recognized as a liability
c. Ignored for accounting purposes
d. Only considered if it exceeds a certain threshold
69. How are deferred tax assets and deferred tax liabilities primarily calculated?
a. Based on future tax rates
b. Using the formula: Carrying amount - Tax base
c. Using the tax rates/laws that have been enacted by the balance sheet date
d. At historical cost
70. If an item has a tax base but isn't recognized in the statement of financial position, what's its
carrying amount?
a. Equal to the tax base
b. Nil
c. Estimated based on future expectations
d. Recognized at fair value