FAR - IFRS Flashcards
1
Q
IAS 20, when can grants be recognized?
A
They can only be recognized when both assurance conditions can be met and are certain to be received.
2
Q
What is NOT allowable under IFRS?
A
LIFO, completed contract, extraordinary items. (Lower of cost/NRV is ok).
3
Q
How is goodwill calculated under IFRS?
A
Calculate goodwill using the 1 step method at CGU level: compare the carrying value of CGU to recoverable amount. Recognize impairment to extent carrying value exceeds recoverable amount. First allocate to goodwill & remaining impairment loss allocated on a pro rata basis to other assets of the CGU.
