PFRS

Question 1

These are the first annual financial statements in which an entity adopts PFRS.

Answer 1

FIRST PFRS FINANCIAL STATEMENTS

Question 2

It is a transaction in which the entity acquires goods or services and pays for them by issuing its own equity instruments.

Answer 2

EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTION

Question 3

is the right to an equity instrument of the entity conferred by the entity on another party.

Answer 3

EQUITY INSTRUMENT GRANTED

Question 4

occurs when one company acquires another or when 2 or more companies merge into one.

Answer 4

BUSINESS COMBINATION

Question 5

it is the risk that the FV or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

Answer 5

CURRENCY RISK

Question 6

is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets.

Answer 6

CASH GENERATING UNIT (CGU)

Question 7

it is the search for mineral resources and similar non-regenerative resources after the entity has obtained legal rights to explore in a specific area.

Answer 7

EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES

Question 8

it is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

Answer 8

LIQUIDITY RISK

Question 9

An entity presenting its first PFRS financial statements is called a.

Answer 9

FIRST TIME ADOPTER

Question 10

An entity presenting its first PFRS financial statements is called a.

Answer 10

FIRST TIME ADOPTER

Question 11

It is the difference between the fair value of the shares which the counterparty has the right to subscribe and the subscription price the counterparty is required to pay.

Answer 11

INTRINSIC VALUE

Question 12

is the entity that the acquirer obtains control.

Answer 12

ACQUIREE

Question 13

It is the higher of an assets fair value less costs of disposal and its value in use.

Answer 13

RECOVERABLE AMOUNT

Question 14

it is the beginning of the earliest period for which an entity presents full comparative information under PFRS.

Answer 14

DATE TO TRANSACTION TO PERSS

Question 15

is a form of compensation given to an employee whereby the employee is entitled to future cash payment.

Answer 15

SHARE APPRECIATION RIGHT

Question 16

it is a contract that evidences a residual interest in the assets of an entity.

Answer 16

EQUITY INSTRUMENT-

Question 17

is the date at which the fair value of the equity instruments granted is measured.

Answer 17

MEASUREMENT DATE

Question 18

It is a group of assets to be disposed of by sale or otherwise together as a group in a single transaction.

Answer 18

DISPOSAL GROUP

Question 19

is the risk that the FV or future cash flows of a financial instrument will fluctuate because of changes in market prices.

Answer 19

MARKET RISK

Question 20

It is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Answer 20

VALUE IN USE

Question 21

it is the date at which the entity and the counterparty agree to the terms and condition of a share-based payment.

Answer 21

GRANT DATE

Question 22

are the incremental costs directly attributable to the disposal of an asset or disposal group.

Answer 22

COSTS TO SALE

Question 23

is one whereby an entity acquires goods or services and incurs an obligation to pay cash at an amount based on the FV of equity instrument.

Answer 23

CASH-SETTLED SHARE-BASED PAYMENT TRANSACTION

Question 24

It is the date on which the acquirer obtains control of the acquiree.

Answer 24

ACQUISITION DATE

Question 25

it is the risk that one party to a financial instrument will cause a financial loss to the other party.

Answer 25

CREDIT RISK

Question 26

is the equity in a subsidiary not attributable to a parent.

Answer 26

NON CONTROLLING INTEREST