IFRS

Question 1

When can the Revaluation of assets under IFRS be used? Where is the revaluation shown?

Answer 1

1. May be used if an active market exists

2. It is listed in the revaluation surplus account in other comprehensive income

Question 2

What is tested to determine operating segment units under IFRS?

Answer 2

Revenue, asset and profit/loss- same as GAAP

Question 3

Under IFRS when is an uncertain rebates liability recorded?

Answer 3

Obligation to provide rebates to customers, 90% probability of occurring.

Question 4

Under IFRS what are the type of investment classifications?

Answer 4

Debt at fair value through profit or loss.
Held to maturity at amortized cost.
Equity at fair value through profit and loss.

Question 5

Under IFRS when can a LT liability be classified as a ST liability in the YE financials?

Answer 5

If the company has executed an agreement to refinance by December 31.

Question 6

Under IFRS what is the impracticability rule?

Answer 6

Under IFRS the rule applies to Errors and AP. Under GAAP it only applies to AP.

Question 7

Under IFRS what are the rules for when to use the revaluation model for valuing plant, property, and equipment?

Answer 7

There are no rules for specific dates or times to use.

Question 8

Under IFRS, intangible assets with indefinite lives are tested for impairment

Answer 8

Annually at the annual reporting date. Same as GAAP

Question 9

Under IFRS, the method used when preferred shares are converted into ordinary shares is

Answer 9

Book Value method

Question 10

Under IFRS for SMEs how is goodwill treated?

Answer 10

It is estimated to have a limited life not to exceed a 10 year life and amortized.

Question 11

Under IFRS, the approach used in segment reporting is known as?

Answer 11

Management approach

Question 12

Under IFRS when can a ST liability due shortly after YE be listed as a LT liability in the F/S?

Answer 12

If an agreement to refinance has been executed at the balance sheet date. Under GAAP, there only has to be intent and ability to refinance

Question 13

Under IFRS, an intangible asset is considered to be impaired if its carrying value is greater than its recoverable amount. The recoverable amount is

Answer 13

The greater of its net selling price or its value in use.

Question 14

Under IFRS, where are cash advances and loans from bank overdrafts, classified in the statement of CF?

Answer 14

In the operating activities

Question 15

Under IFRS, a contingency is described as…?

Answer 15

An event which is not recognized because it is not probable that an outflow will be required or the amount cannot be reasonably estimated.

Question 16

Does IFRS permit push down accounting?

Answer 16

No

Question 17

Under ifrs where is interest expense reported in the CF statement?

Answer 17

In either operating or financing

Question 18

What is a recoverable amount?

Answer 18

The greater of its net selling price or its value

Question 19

For IFRS purposes, cash advances and loans from bank overdrafts should be reported on the statement of cash flows as…?

Answer 19

Operating activities

In GAAP, they are not included in CFs, instead as a liability in the BS.

Question 20

Under ifrs are probable benefits recorded?

Answer 20

No, they would only be disclosed in the notes- same as GAAP

Question 21

What is the difference between a provision and a contingent liability?

Answer 21

A provision is probable