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1
Q

What is IAS 16?

A

Property plant and equipment

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2
Q

When we dispose of PPE (IAS 16), how do we calculate proceed?

A

Disposal proceeds

Less: Carrying amount

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3
Q

With a revaluation gain of PPE (IAS 16), what do we do with gains or losses?

A

Gain:
Credit revaluation reserve (Other comprehensive income)

Loss:
Charge to P+L as expense

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4
Q

What is IAS 23?

A

Borrowing costs

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5
Q

According to IAS 23 Borrowing costs

Borrowing costs must be capitalised if the cost of an asset is one which…

A

Necessarily takes a substantial period of time to get ready for its intended use or sale

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6
Q

According to IAS 23 Borrowing costs

We commence capitalisation of borrowing costs when…

A

Expenditure is being incurred
Borrowing being incurred
Work commenced

Stops when ready for use or construction supenced

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7
Q

According to IAS 23 Borrowing costs

When do we stop capitalising?

A

Stops when ready for use or construction suspended

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8
Q

What is IAS 20?

A

Accounting for government grants and disclosures

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9
Q

According to IAS 20 Accounting for government grants and disclosures

How can a revenue grant be presented?

A
  • As a credit in P+L

- Deducted from related asset

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10
Q

According to IAS 20 Accounting for government grants and disclosures

What are Capital grants?

A

Government contribution towards cost of new machinery

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11
Q

According to IAS 20 Accounting for government grants and disclosures

How can a capital grant be presented?

A

-Net off against cost and depreciate reduced amount

-Capitalise and depreciate as normal
Treat grant as deferred income
Release over useful life in P+L as finance cost

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12
Q

What is IAS 40?

A

Investment properties

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13
Q

According to IAS 40, what is an investment property held for?

A

Land or building held for

Rentals,
Capital appreciation; or
Both of above

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14
Q

According to IAS 40 Investment properties, how do we initially measure investment property?

A

At cost

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15
Q

What are the two accounting choices under IAS 40 Investment properties?

A

Cost model

Fair value model

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16
Q

What is the cost model under IAS 40 Investment properties?

A

Capitalise at cost

Depreciate as normal

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17
Q

What is the fair value model under IAS 40 Investment properties?

A

Capitalise at cost
Each year revalue to fair value
Gain or loss goes to P+L (Not revaluation surplus!!)
No depreciation

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18
Q

What is IAS 38?

A

Intangible assets

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19
Q

Under IAS 38 Intangible assets, what are the four recognition criteria?

A
  • Identifiable
  • Controlled by entity
  • Future economic benefits are probable
  • Reliably measured
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20
Q

What are the two types of intangible assets under IAS 38?

A

Purchased intangibles

Internally generated intangibles

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21
Q

Under IAS 38 Intangible assets

How to we recognise Purchased intangibles with a finite life?

A

Capitalise at cost

Amortise over useful life

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22
Q

Under IAS 38 Intangible assets

How to we recognise Purchased intangibles with a infinite life?

A

Capitalise at cost

Review annually for impairment

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23
Q

Under IAS 38 Intangible assets

How to we recognise internally generated intangibles?

A

Do not capitalise!!

Only exception is research and development

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24
Q

What is IAS 36?

A

Impairment of assets

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25
Under IAS 36 Impairment of assets, how should assets be carried?
Lower of Carrying amount Recoverable amount
26
What is the recoverable amount?
Higher of Fair value less costs to sell Value in use
27
Under IAS 36 Impairment of assets, what are three indicators of impairment?
- Operating losses - Technological advances - Obsolescence /Physical damage
28
How do we account for Impairment under IAS 36 Impairment of assets?
Dr Impairment expense Cr Non-Current asset Unless previously revalued Dr Revaluation surplus Dr Impairment expense Cr Non-Current asset
29
What is described below? The smallest group of identifiable assets that generate independent cashflows
Cash generating unit
30
What is IFRS 5?
Non-current assets held for sale and discontinued operations
31
What is the definition of a Non-current asset held for sale under IFRS 5?
Its carrying amount will be recovered principally through a sale transaction rather than continued use
32
How do we measure Non-current assets held for sale under IFRS 5?
Lower of: Carrying amount Fair value less costs to sell
33
Do we depreciate non-current assets held for sale?
No
34
How do we recognise gains of losses on reclassification of Non-current assets held for sale under IFRS 5?
Losses recognised in P+L Gains taken to revaluation surplus
35
What is IAS 8
Accounting policies, changes in accounting estimates and errors
36
Under IAS 8 Accounting policies, changes in accounting estimates and errors Do we treat changes in accounting policy retrospectively or prospectively?
Retrospectively
37
Under IAS 8 Accounting policies, changes in accounting estimates and errors Do we treat changes in accounting estimate retrospectively or prospectively?
Prospectively
38
Under IAS 8 Accounting policies, changes in accounting estimates and errors Do we treat errors retrospectively or prospectively?
Retrospectively
39
Under IAS 8, what do we do when there is a change in accounting policy? 4 things
- New policy applied - Restate retained earnings - Disclose in SOCIE - Restate comparatives
40
Under IAS 8, what do we do when there is a change in accounting estimate? 2 things
- Change current and future period | - Disclose if change is material
41
Under IAS 8, what do we do when there is an error? 4 things
- Restate opening assets, liabilities and equity as if error never occurred - Adjust retained earnings - Disclose in SOCIE - Restate comparatives
42
What is IFRS 13?
Fair value measurement
43
What is level one under IFRS 13 Fair value measurement?
Quoted prices in active markets
44
What is level two under IFRS 13 Fair value measurement?
Quoted prices for similar or identical items in inactive markets
45
What is level three under IFRS 13 Fair value measurement?
Unobservable inputs, based on best available information
46
What is IAS 2?
Inventory
47
Under IAS 2 Inventory, how should inventory be measured?
Lower of: - Cost - NRV
48
What is IAS 41?
Agriculture
49
How do we measure Agriculture under IAS 41?
Recognise at FV less costs to sell Revalue to FV less costs to sell at year end Take gain or loss to statement of profit or loss
50
What is IFRS 15?
Revenue from contracts with customers
51
What are the 5 steps in recognising revenue under IFRS 15?
Step 1 - Identify the contract Step 2 - Identify the separate performance obligations under the contract Step 3 - Determine the transaction price Step 4 - Allocate the transaction price to the performance obligations in the contract Step 5 - Recognise revenue when or as a performance obligation is satisfied
52
Under IFRS 15 how do we recognise ... Agency sales?
Recognise commission only in revenue
53
Under IFRS 15 how do we recognise ... Sale or return?
If control of goods does not pass to the buyer then do not recognise revenue
54
Under IFRS 15 how do we recognise ... Sale and repurchase?
If control does not pass to the buyer then do not recognise revenue Treat proceeds as a loan and charge interest to date of repurchase
55
How do we recognise revenue if progress is unknown?
Recognise revenue to level of recoverable costs
56
What do we record in the SFP if... Revenue exceeds amount received?
Receivable
57
What do we record in the SFP if... If cash spent exceeds cost of sales?
Work in progress
58
What do we record in the SFP if... If cash received exceeds revenue?
Liability
59
What do we record in the SFP if... If contract is loss making?
Provision
60
What is IFRS 16?
Leases
61
Under IFRS 16, under a leasing arrangement, what has to be recorded?
Both the asset and the liability
62
What is the economic substance of a lease?
That the lessee has the beneficial use of that asset and has an obligation to pay for that use
63
What is the subsequent measurement of the ROU asset?
- Measure using cost model (unless another method chosen) | i. e cost - depn - impairment
64
What timeframe is a ROU asset depreciated over?
Shorter of: - Assets useful life or - Lease term Unless: It is transferred to the lessee at the end of the term in which case use useful life
65
What is the subsequent measurements of a lease liability?
At amortised cost which is... Initial value plus interest charge Less: Payments made
66
How do we recognise a sale and leaseback if NOT deemed a sale under IFRS 15?
- Continue to recognise the asset | - Treat sale proceeds as a loan
67
How do we recognise a sale and leaseback if deemed a sale under IFRS 15?
- Asset disposed and re-acquired as a ROU asset | - Gain on disposal based on proportion of asset rights transferred to the buyer
68
What is IAS 7?
Statement of cashflows
69
What category under IAS 7 do the below go into? Interest paid Income taxes paid
Operating activities
70
What category under IAS 7 do the below go into? ``` Purchase of PPE Proceeds from sale PPE Interest received Government grants received Dividends received ```
Investing activities
71
What category under IAS 7 do the below go into? Proceeds from issues of shares Proceeds from long term borrowings Payment of lease Dividends paid
Financing activities

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