Year 3

Question 1

how to account for warranties that provide an extra service

Answer 1

treated as a separate performance obligation

Question 2

What are the 5 steps of revenue recognition

Answer 2

1. identify the contract with the customer
2. identify performance obligations
3. determine the transaction price
4. allocate prices to obligations
   5 recognise revenue

Question 3

how to account for warranties that only provide the item will work as sold

Answer 3

recognise as a provision under IAS37

Question 4

IAS21 - what is the functional currency?

Answer 4

The currency of the primary economic environment in
which the entity operates.

Question 5

IAS21 - what is the Presentation currency?

Answer 5

The currency in which the financial statements are
presented

Question 6

IAS21 - what is the exchange rate?

Answer 6

the ratio exchange for 2 currencies

Question 7

IAS21 - what is the Closing rate?

Answer 7

The spot exchange rate at the end of the reporting period

Question 8

IAS21 - what is the spot rate/historic rate?

Answer 8

The exchange rate for immediate delivery

Question 9

IAS21 - what is the average rate?

Answer 9

average rate throughout the accounting period