International Financial Reporting Standards (IFRS)

Question 1

14. According to IASB framework what are 5 elements?

Answer 1

1. Asset
2. Liability
3. Equity
4. Income
5. Expense

Question 2

16. Under IFRS for SMEs Which cost flow assumptions can be used for inventory valuation?

Answer 2

FIFO and Weighted Average

LIFO cannot be used

Question 3

16. Under IFRS for SMEs does Earnings per Share and Info by Segment need to be disclosed?

Answer 3

NO

Question 4

17. Abbey Corporation prepares its financial statements in accordance with IFRS. Abbey acquired equipment by signing a $100,000 note payable with the seller of the equipment. How should this transaction be reported on the statement of cash flows?
    - As an outflow of cash from investing activities and an inflow of cash from financing activities
    - As an inflow of cash from financing activities and an outflow of cash from operating activities
    - At the bottom of the statement of cash flows as a significant noncash transaction
    - In the notes to the financial statements as a significant noncash transaction

Answer 4

A:In the notes to the financial statements as a significant noncash transaction

This transaction did not involve an exchange of cash; therefore, it is not included on the statement of cash flows.
IFRS requires that significant noncash transactions be reported in the notes to the financial statements.