IAS 12

Question 1

Deductible?

Answer 1

Increases income tax expense

Question 2

Temporary?

Answer 2

Decrease income tax expense

Question 3

Missing items in inventory?

Answer 3

Added to the carrying amount

Write down decreases carrying amount

Question 4

Get accumulated depreciation from reducing balance

Answer 4

Cost * % * number of years

Question 5

When must a provision be recognised?

Answer 5

When there is a present obligation. Provision in two years time won’t be recognised

Question 6

Sale proceeds included in VIU?

Answer 6

Yes

Question 7

Sale and leaseback, optional exemption, repaying a loan

Answer 7

Decrease gearing

Question 8

When should a provision be discounted?

Answer 8

If it’s far ahead in the future

Question 9

Trade receivable double entry in a contract?

Answer 9

Denoted by amount received

Debit Bank
Credit trade receivable

Question 10

Impairment of investment in associate

Answer 10

Debit RE
Credit investment in associate

Question 11

Loan notes consideration?

Answer 11

Debit Goodwill
Credit loan notes

Question 12

Internally generated brands?

Answer 12

Not recognised in individual FSs, but recognised as non-current assets in consolidation