2. IFRS

Question 1

What does IFRS stands for?

Answer 1

International financial reporting standards

Question 2

What’s the IFRS’s independent standard setting body?

Answer 2

International Accounting Standard Board (IASB)

Question 3

Comparable presentation

Answer 3

G: no. I: yes, prior year

Question 4

Evaluation cut off date

Answer 4

G: insurance date
I: authorization date

Question 5

Exception for consolidated stmt

Answer 5

G: no
I: yes

Question 6

FV can be used for equity method items?

Answer 6

G: yes
I: no

Question 7

Ok to classify ST liab as noncurrent if financed with LT?

Answer 7

G: yes
I: only if the agreement in place

Question 8

Contingency liability % and case of a range

Answer 8

G: >70%, lowest in the range
I: > 50%, mid point

Question 9

LIFO use

Answer 9

G: ok
I: no

Question 10

Fixed asset revaluation

Answer 10

G: no
I: ok if consistent

Question 11

Biological assets reported separately?

Answer 11

G: no
I: yes

Question 12

Impairment approach how many steps?

Answer 12

G: 2 steps
I: 1

Question 13

What used to compute impairment

Answer 13

G: FV / Carrying Value
I: Recoverable amount / Carrying value

Question 14

Impairment loss reversible?

Answer 14

G: no
I: yes

Question 15

ISAB applies to both public and private companies?

Answer 15

Yes

Question 16

IFRS financial stmts includes..

Answer 16

BS, IS, stmt of changes in equity, stmt of cash flows, note supplemental materials

Question 17

Elements of financial stmts

Answer 17

G: A, L, E, investments by owners, distribution to owners, comprehensive income, rev, gains, losses
I: A, L, E, income (includes gains and rev), expenses

Question 18

When does IFRS recognize an item?

Answer 18

Probable and costs/value can be measure realiably

Question 19

What’s IFRS for SMEs for?

Answer 19

Small and medium size companies. For primarily private companies

Question 20

Who can use IFRS for SMEs?

Answer 20

Entities that do not have to follow GAAP or IFRS.
Do not hold assets in a fiduciary capacity (no banks, ins companies, brokers/dealers, pension, mutual funds).
Not for not-for-profit, or governmental entities

Question 21

Financial assets/liab

Answer 21

Use costs more

Question 22

Cost method and equity method permitted?

Answer 22

Yes

Question 23

Inventory, which methods?

Answer 23

FIFO and weighted average cost

Question 24

Interest capitalization during construction of an asset required?

Answer 24

No

Question 25

GW and other intangible assets assumed to have limited life?

Answer 25

Yes. If can’t find, use 10yrs

Question 26

Earning per share and segment disclosures required?

Answer 26

No

Question 27

BS elements

Answer 27

Current, non current

Question 28

Interest pd classification

Answer 28

G: operating
I: o or f

Question 29

Interest rcvd classification

Answer 29

G: o
I: o or investing

Question 30

Taxes pd classification

Answer 30

G: o
I: o in financing or investing

Question 31

Divin rcvd

Answer 31

G: o
I: o or I

Question 32

Divi pd

Answer 32

G: f
I: o or f

Question 33

Cash or cash equivalent include bank overdraft?

Answer 33

G: no
I: yes