➢ Non-current assets held for sale and discontinued operations is to “specify the accounting for

assets held for sale, and the presentation and disclosure of discontinued operations.” (True)
➢ If the criteria for classification as held for sale are met before the reporting period, an entity shall
not classify a non-current asset (or disposal group) as held for sale in those financial statements
when issued. (False) after the reporting period
➢ Before recognition, an entity applies either the cost model or the revaluation model to the
exploration and evaluation assets. Refer to PAS 16 Property, Plant and Equipment and PAS 38
Intangible Assets for guidance. (False) After recognition
➢ The cessation of classification as discontinued operation is accounted for prospectively
(False) Retrospectively
➢ The cessation of classification as held for sale (non-current assets and disposal groups that are
not components of an entity) is accounted for prospectively (True)
➢ The first step in exploration for and evaluation of mineral resources is to obtain legal rights to
explore a specific area. This may involve obtaining mineral exploration permits, licenses or leases
from government authorities. (True)
➢ Tangible exploration and evaluation assets are physical assets such as land, buildings, and
equipment. (True)
➢ Exploration and evaluation expenditures are typically classified as intangible assets on a
company's balance sheet, and are subject to specific accounting rules under International
Financial Reporting Standards (IFRS) and generally accepted accounting principles (GAAP). (True)
➢ An entity classifies exploration and evaluation assets as tangible or intangible according to the
nature of the assets acquired and applies the classification consistently. (True)
➢ A disposal group is a cluster of assets and liabilities that are intended to be sold off or disposed
of in some other way as part of a single transaction. (True)
➢ Insured event is a party that has a right to compensation under an insurance contract if an
insured event occurs. (FALSE- POLICYHOLDER)
➢ An insurance contact is “a contract under which one party (the issuer) accepts significant
insurance risk from another party (the policyholder) by agreeing to compensate the policyholder
if a specified uncertain future event (the insured event) adversely affects the policyholder.”
(TRUE)
➢ Reinsurance contract is an insurance contract where the insurer directly accepts risk from the
insured and assumes the sole of obligation to compensate the insured in case of a loss event.
(FALSE- DIRECT INSURANCE CONTRACT)
➢ An insurance contract is onerous at the date of initial recognition if the fulfilment cash flows
allocated to the contract, including any previously recognized acquisition cash flows and any
cash flows arising from the contract at the date of initial recognition in total are a net outflow.
(TRUE)
➢ The premium allocation approach is a simplified form of measuring insurance contracts in
comparison with the general model. (TRUE)
➢ Indemnification against loss is a transfer of significant insurance risk from the insured
(policyholder) to the insurer (insurance provider). (FALSE- Transfer of significant insurance risk)
➢ Principle of Contribution is an extension and another consequence of the principle of indemnity.
(FALSE- Principle of Subrogation)
➢ PFRS 3 requires that all business combinations be accounted for using the acquisition method
(TRUE)
➢ PFRS 3 requires that the acquirer recognize all of the acquiree's identifiable assets, liabilities, and
contingent liabilities at their fair values on the acquisition date. (TRUE)
➢ Control presumed to exist when the acquirer holds less than 50% interest in the acquiree’s
voting rights. (FALSE – More than 50%)