Other Reporting Frameworks

Question 1

They have no provisions for SMEs.

Answer 1

1. FVOCI
2. NCAHFS
3. Operating Segments
4. Interims
5. Bearer Plants

Question 2

These are not necessary for SMEs

Answer 2

1. SOCI
2. SOCE
3. SOFP

Question 3

Instead of SOCE, what can an SME provide instead?

Answer 3

SIRE: Statement of Income and Retained Earnings

(As long as it follows the PPCC rule)

Question 4

What are the conditions that an SME can present a SIRE instead of SOCE?

Answer 4

When changes in equity arise from:

2. Profit or Loss
3. Payment of Dividends
4. Correction of Errors
5. Changes in Policies

Question 5

What are the items measured at CA or FV when it comes to SMEs?

Answer 5

1. Financial Instruments
2. Investment Property

Question 6

What item/s is/are measured at FVLCTS or Cost when it comes to SMEs?

Answer 6

Agriculture

Question 7

These are the items recognized as income or expense outright for SMEs?

Answer 7

1. Borrowing Cost
2. R&D Cost
3. Lease Payments & Receipts

Question 8

These are the items amortized with a UL of less than 10 years for SMEs?

Answer 8

1. IA (Intangible Asset)
2. Goodwill from Business Combination
3. Goodwill from Investment in Associate

Question 9

These are the items measured at FV for SMEs?

Answer 9

1. Government Grant
2. Share Options

Question 10

These are recognized through the cost model alone?

Answer 10

1. Intangible Asset
2. Intangible Exploration

Question 11

What are the choices that an SME has to measure Investment in Associate?

Answer 11

1. Cost Model
2. Equity Model
3. Fair Value Model

Question 12

What are the choices of an SME in accounting for Actuarial G/L?

Answer 12

1. P/L
2. OCI

Question 13

What are the two choices for an SME in recording for Tangible Exploration?

Answer 13

1. Cost Model
2. Revaluation Model

Question 14

When it comes to changes in accounting policy for SE’s, how do SE’s account for it?

Answer 14

1. Cumulative effect shall be recognized in Retained Earnings or in another equity component
2. Comparative information shall not be restated

Question 15

When it comes to correction of prior period errors, how do SE’s account for it?

Answer 15

1. Cumulative effect shall be recognized in Retained Earnings or in another equity component
2. Comparative information shall not be restated

Same as changes in accounting policy

Question 16

According to PFRS for small entities, these are the basic financial instruments.

Answer 16

1. Cash
2. Bank Deposits
3. Trade receivables and payables
4. Notes + loans receivable and payable
5. Investments in nonconvertible preference shares and non-puttable ordinary shares

Question 17

What is the initial measurement of basic financial transactions for small entities?

Answer 17

Transaction price including transaction cost

Question 18

What is the difference in measurement for Inventories under SMEs and SEs?

Answer 18

1. SMEs - measure it at LCNRV
2. SEs - measure at cost, then subsequently measure it at LCFV

Question 19

How do you account for the Biological Assets under SE’s?

Answer 19

1. Cost Model
2. Current market price model - FV model

Question 20

What are the two methods that government grants are recognized for SE’s

Answer 20

1. Non-recognition
2. Recognition at fair value

Question 21

What classification do SEs have for leases as compared to SMEs?

Answer 21

1. SEs only recognize leases as operating leases
2. SMEs can recognize both finance and operating leases

Question 22

What are the two choices of recognizing income tax when it comes to SEs?

Answer 22

1. Taxes Paybale Method (shall only recognize current taxes)
2. Deferred Taxes Method (shall recognize deferred taxes)

Question 23

When it comes to post-employment benefits for SEs, what are the provisions?

Answer 23

1. It is accounted for using the accrual method
2. No considerations for changes in future salary
3. No recognition of actuarial gains and losses

Question 24

For equity-settled share based payments, how is this measured for SEs?

Answer 24

NAV (Net Asset Value)
NAV = Total Assets - Liabilities / Number of Shares Outstanding