6.

An entity has a loan due for repayment in six months’ time but the entity has the option to refinance for
repayment two years later. The entity plans to refinance this loan. In which section of the statement of
financial position should this loan be presented?
Noncurrent liabilities
7. Which of the following must be included on the face of the statement of financial position?
Investment property
Number of shares authorized
Contingent asset
Shares in an entity owned by that entity
8. Which of the following is not required to be presented as minimum information on the face of the
statement of financial position?
Contingent liability
Investment accounted under the equity method
Investment property
Biological asset
9. Which of the following must be included as a line item in the statement of financial position?
Contingent asset
PPE analyzed by class
Share capital and reserves analyzed by class
Deferred tax assets
10. Which statement about the statement of financial position is not true?
a. biological assets should be reported in the statement of financial position
b. The number of shares authorized for issue should be reported in the statement of financial
position or the statement of changes in equity or in the notes
c. Provisions should be recognized in the statement of financial position
d. A revaluation surplus on a noncurrent asset in the current year should be recognized in
the income statement