Professional Documents
Culture Documents
As per Ind AS 108 ‘Operating Segments’, if a financial statement contains both the
consolidated financial statements of a parent, as well as parent’s separate financial
statements, segment information is required:
a) Only in the consolidated financial statements.
b) Only in the parent’s separate financial statements.
c) Both sets of financial statements.
d) Either in the consolidated financial statement or in the parent’s separate financial
statements.
Answer‐ a) Only in the consolidated financial statements.
2. Which of these is an allowable cost of an asset under Ind AS 16 ‘Property, Plant and
Equipment’?
a) Professional fees
b) General overheads
c) Initial operating losses
d) Administration expenses
Answer‐ a) Professional fees
3. Commission on reinsurance ceded appears as
a) An expense in revenue account.
b) An income in revenue account
c) A liability in the balance sheet.
d) An asset in the balance sheet.
Answer‐ b) An income in revenue account.
4. As per Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’ warranty claims
normally generate:
a) A contingent liability.
b) A provision.
c) A contingent asset.
d) An onerous contract
Answer‐ b) A provision.
5. As per Ind AS 105‘Non‐current Assets Held for Sale and Discontinued Operations’, which of
the following is not allowed as a “cost to sell”?
a) Finance costs
b) Auctioneers commission
c) Advertisements
d) Legal fees for drafting contract of sale
Answer‐ a) Finance costs
6. How often should the useful life of an intangible asset with a finite useful life be reviewed as
per Ind AS 38 ‘Intangible Assets’?
a) Every six months
Answer ‐ b) Expensed
8. In respect of an entity which is a first time adopter of Ind AS, Ind AS 102 would not
necessarily be required to be applied to which of the following equity instruments?
a) Equity instruments that vested before date of transition to Ind AS
b) Equity instruments that vested after date of transition to Ind AS
c) Equity instruments that vested on the date of transition to Ind AS
d) All equity instruments that vested before, on and after date of transition to Ind AS.
Answer‐ a) Equity instruments that vested before date of transition to Ind AS
9. As per Ind AS 38 ‘Intangible assets’, amortization of an intangible asset should commence
when
a) Expenditure is first incurred on that asset
b) The asset is available for use
c) Economic benefits start to realize from that asset
d) reasonable time passes.
Answer ‐ b) The asset is available for use
10. As per AS 26, which one of the following is not a development activity?
a) Search for alternatives for materials, devices, products,
b) Construction of pre‐production prototypes and models
c) Design of tools, jigs and dies involving new technology
d) Design, construction and operation of a new plant.
Answer ‐ a) Search for alternatives for materials, devices, products,