IFRS

Question 1

What are the conditions that a parent may EXCLUDE a subsidiary?

Answer 1

Wholly/Partially owned - No Objections

Not publicly traded

Parent prepared Consolidated Financials

Question 2

In Business combinations what accounting method does IFRS not allow?

Answer 2

Push-Down Accounting

Question 3

Business Combinations:

At what value does IFRS allow Non-Controlling interest?

Answer 3

FV or % share of value of identifiable net asset

Question 4

How does IFRS measure inventory

Answer 4

Lower of Net Realizable Value or Cost

Question 5

Prior period errors include?

Answer 5

Arithmetic Mistakes, Measurement Mistakes

Accounting Policy application Mistakes

Recognition, presentation & Disclosure mistakes

Question 6

How does IFRS handle overstated sales in a prior period?

Answer 6

Restating the prior year F/S for comparative purposes

Question 7

How is a change in accounting estimate accounted for?

Answer 7

Prospectively in the period of change and future periods.

Question 8

When can changes in accounting principals occur?

Answer 8

When the change provides more reliable information

Or when it is Required by IFRS

Question 9

How is a voluntary change in accounting method applied?

Answer 9

Retrospectively

Question 10

On the statement of cash flows where is Dividends received recorded?

Answer 10

Operating or Investing