Professional Documents
Culture Documents
01 Quiz Bee p1 and Toa Easy2
01 Quiz Bee p1 and Toa Easy2
3. The Oakes Company has a loan due for repayment in six months' time, but
Oakes has the option to refinance for repayment two years later. Oakes plans
to refinance this loan.
In which section of its statement of financial position should this loan be
presented, according to IAS1 Presentation of financial statements? (select
one answer)
A Current liabilities
B Current assets
C Non-current liabilities
D Non-current assets
Question 12 - C
Because Oakes both has the right to roll over the loan beyond 12 months for
the end of the reporting period and intends to roll it over, it should be
presented as a non-current liability per para 73 of IAS1.
4. Which TWO of the following should be taken into account when determining
the cost of inventories per IAS2 Inventories?
A Storage costs of part-finished goods
B Trade discounts
C Recoverable purchase taxes
D Administrative costs
Question 1 - A & B
The correct answers are trade discounts (deduct these from purchase costs)
and storage costs for part-finished (but not finished) goods.
See IAS2 paras 11 and 16.
5. Which ONE of the following statements best describes the carrying amount of
an asset?
A The cost (or an amount substituted for cost) of the asset less its residual
value
B The amount at which the asset is recognized in the statement of financial
position after
deducting any accumulated depreciation and accumulated impairment
losses
C The higher of the asset's net selling price and its value in use
D The fair value of the asset at the date of a revaluation less any subsequent
accumulated
impairment losses
Question 3 - B
The correct answer is "The amount in the statement of financial position
after accumulated depreciation and impairment losses".
IAS16 para 6 defines the carrying amount.
7. The Mirror Company classified a non-current asset accounted for under the
cost model as held for sale on 31 December 20X6. Because no offers were
received at an acceptable price, Mirror decided on 1 July 20X7 not to sell the
asset, but to continue to use it. In accordance with IFRS5 Non-current assets
held for sale and discontinued operations, the asset should be measured on 1
July 20X7 at (select one answer)
A the lower of its carrying amount and its recoverable amount
B the higher of its carrying amount and its recoverable amount
C the lower of its carrying amount on the basis that it had never been
classified as held for sale and its recoverable amount
D the higher of its carrying amount on the basis that it had never been
classified as held for
sale and its recoverable amount
Question 2 - C
IFRS5 para 27 in effect requires an entity ceasing to classify an asset as held
for sale to remeasure it as if it had never been held for sale, subject to an
impairment test (the recoverable amount test) at that date.
10.The Snowfinch Company is closing one of its operating divisions, and the
conditions for making restructuring provisions in IAS37 Provisions, contingent
liabilities and contingent assets have been met. The closure will happen in
the first quarter of the next financial year. At the current year end, the
company has announced the formal plan publicly and is calculating the
restructuring provision. Which ONE of the following costs should be included
in the restructuring
provision?
A Retraining staff continuing to be employed
B Relocation costs relating to staff moving to other divisions