Financial Reporting

Question 1

ASPE 3820 Subsequent events

Answer 1

Type one event that provides evidence of conditions existed at financial statement date – adjustment required
Type two events that provides evidence of conditions that arose after the financial statement date – disclosure required

Question 2

Contingent liability - IFRS

Answer 2

Probable – greater than 50% – measurable – record using weighted average of range
Possible – 11% to 49%– disclose in notes
Remote – 0% to 10% – nothing is required

Question 3

Contingent gains – IFRS

Answer 3

Certain – 95% to 100% – measurable – record
Probable - 50% to 94% - disclose
Unlikely – not applicable

Question 4

ASPE 3063/IAS 36 impairment of assets

Is a reversal of an impairment allowed?

Answer 4

ASPE 3063 not possible

IAS 36 yes, except for Goodwill, flows through net income

Question 5

ASPE 3063/IAS 36 impairment of assets

Assets must be listed at recoverable amount-which is?

Answer 5

The higher of:

• fair value-disposal
• present value of future cash flows-value in use

Question 6

IAS 39/IAS 32 financial instruments

Answer 6

Listed as a liability or equity based on substance and not on legal form.
Liability-contractual obligation
Equity-contract that evidences a residual interest in net assets
Treasury shares-deduct from equity