Module Title
Date
P ::
::
R
IFRS Course
E T E S T
This PRETEST HAS the aim for gauging your prior knowledge of the No. Weight Mark No. Weight Mark
principles, concepts, techniques, tools and methods that are related
to the topics covered by this module. Q# 1 3.5 Q# 15 3.5
The test should take about 15 minutes to complete,
Q# 2 3.5 Q# 16 3.5
The pretest will provide a sense of your existing knowledge.
Q# 3 3.5 Q# 17 3.5
Q# 4 3.5 Q# 18 3.5
Trainee Name: Q# 5 3.5 Q# 19 3.5
CPR: Q# 6 3.5 Q# 20 3.5
Trainee Signature: Q# 7 3.5 Q# 21 3.5
Trainee Comments (if any): Q# 8 3.5 Q# 22 3.5
Q# 9 3.5 Q# 23 3.5
Q# 10 3.5 Q# 24 3.5
Q# 11 3.5 Q# 25 3.5
Q# 12 3.5 Q# 26 3.5
Q# 13 3.5 Q# 27 3.5
Q# 14 3.5 Q# 28 5.5
Total 100
Pretest Indicators
“0 to 49 Below Average, 50 to 69 Average, 70 to 85 Good, 86 to 100 Outstanding”
amount of pre-existing ❑ Below Average ❑ Good
knowledge on course
topics ❑ Average ❑ Outstanding
Topics to be added/ get
more focus on the course
content
Topics to be removed/ get
less focus from the course
content
Preferred Delivery
methodologies and styles
Effective assessment
methodologies and styles
Other Pretest Indicators
Comments and feedback
Pretest Indicators
Pretest Indicators
Trainer Name:: Signature:: Date::
Answer the following questions by choosing the right option
points for each question 3.5
Which sections of an annual report do IFRS's apply to...
1.
Select one:
Management Report
q
Financial statements
q
Auditors report
q
Entire annual report
q
Which of the following reports is not a component of the financial
2. statements according to IAS 1?
Select one:
Balance sheet
q
Statement of changes in equity
q
Director’s report
q
Notes to the financial statements
q
Are the following statements true or false, according to IAS1 Presentation
of financial statements?
(1) Dividends paid should be recognized in the statement of
comprehensive income.
3. (2) A loss on disposal of assets should be recognized in the statement of
changes in equity.
Statement (1) Statement (2)
Select one:
False False
q
False True
q
True False
q
True True
q
Are the following statements in relation to a change in accounting
estimate true or false, according to IAS8 Accounting policies, changes in
accounting estimates and errors?
(1) Changes in accounting estimates are accounted for retrospectively.
4. (2) Changes in accounting estimates result from new information or new
developments
Statement (1) Statement (2)
Select one:
q False False
q False True
q True False
q True True
According to IAS8 Accounting policies, changes in accounting estimates
and errors, which TWO of the following statements best describe
5. 'prospective application'?
Select one or more:
q Recognising a change in accounting estimate in the current and future periods affected by the
change
q Correcting the financial statements as if a prior period error had never occurred
q Applying a new accounting policy to transactions occurring after the date at which the policy
changed
q Applying a new accounting policy to transactions as if that policy had always been applied
According to IAS16 Property, plant and equipment, which TWO of the
following items should be capitalised into the cost of property, plant and
6. equipment?
Select one or more:
q Cost of excess materials resulting from a purchasing error
q Cost of testing whether the asset works correctly
q Initial operating losses whilst demand builds up
q Cost of preparing the site for installation
Which TWO of the following statements are correct per IAS16 Property,
7. plant and equipment?
Select one or more:
q Assets are depreciated even if their fair value exceeds their carrying amount
q Land and buildings are accounted for separately, even when acquired together
q A non-current asset acquired as the result of an exchange of assets is not recognised
q A gain on disposal of a non-current asset is classified as revenue
XYZ company preparing its annual financial statements, as per IAS 24
8. which one is related party to the XYZ company?
Select one:
q Person has control or joint control with significant influence over XYZ Company
q Is a member of the key management personnel of the XYZ Company or of a parent of the XYZ
company
q Both above are related parties to XYZ Co
q None of these
Related party transaction can be defined as
9.
Select one:
q Transfer of resources, services or obligations between a reporting entity and a related party,
regardless of whether a price is charged
q Transfer of resources, services or obligations between a reporting entity and a related party where
price is charged
q Transfer of resources, services or obligations between a reporting entity and a related party where
price charged is material
q All of the above
IAS 36 applies to which of the following assets?
10. Select one:
q Inventories.
q Financial assets
q Assets held for sale
q Property, plant, and equipment
If the fair value less costs to sell for an asset cannot be determined, then
11. recoverable amount is its…
Select one:
q Fair value
q Market value
q Replacement value
q Value in use
The amount of a provision should be the "best estimate" of the
12. expenditure required to settle the obligation concerned. This estimate:
Select one:
q Should always be discounted to present value
q Should be the amount that would rationally be paid to settle or transfer the obligation
q Should not be adjusted to reflect future events that may affect the amount of the required
expenditure, whether or not those events are likely to occur
q Must always be made on the basis of advice from independent experts
Should a provision be recognised in relation to:
(a) future operating losses?
13.
(b) onerous contracts?
Select one:
q (a) No (b) No
q (a) Yes (b) No
q (a) Yes (b) Yes
q (a) No (b) Yes
Which TWO of the following statements best describe owner-occupied
14. property, according to IAS40 Investment property?
Select one or more:
q Property held for sale in the ordinary course of business
q Property held for use in the production and supply of goods or services
q Property held to earn rentals
q Property held for administrative purposes
A gain arising from a change in the fair value of an investment property
15. for which an entity has opted to use the fair value model is recognized in
Select one:
q Net profit or loss for the year
q General reserve in the shareholders’ equity
q Valuation reserve in the shareholders’ equity
q None of the above
A Club enters into a contract with a new member to provide access to its
club for a 12-month period at Rs 3,500 per month. The member can cancel
16. his or her membership without penalty after three months. Specify the
contract term.
Select one:
q 3 Months
q 12 Months
q Nil
q Uncertain
A contract is wholly unperformed if…
a) The entity has not yet transferred any promised goods or services to
the customer
b) The entity has not yet received any consideration in exchange for
17. promised goods or services
c) The entity is not yet entitled to receive any consideration in exchange
for promised goods or services
d) All of the above
Select one:
q A and B
q A and C
q A and D
q All of the above
A company enters into a contract to supply three distinct products to a
customer. The promise to supply each of these products is regarded as a
separate performance obligation. The stand-alone prices of the three
products (if sold singly) are:
Product X £ 12,500
18. Product Y £ 24,000
Product Z £ 27,500
The agreed contract price is £ 57,600. How should this price be allocated
to performance obligations?
Select one:
q Product X £ 19,200
Product Y £ 19,200
Product Z £ 19,200
q Product X £ 11,250
Product Y £ 21,600
Product Z £ 24,750
q Product X £ 12,500
Product Y £ 24,000
Product Z £ 27,500
q Product X £ 10,367
Product Y £ 21,867
Product Z £ 25,366
On 01 January 20X1, an entity contracts to renovate a building including
the installation of new elevator The entity estimates the following with
respect to the contract:
Particulars Amount (£ )
Transaction price 5,000,000
Expected costs:
(a) Elevators 1,500,000
19. (b) Other costs 2,500,000
Total 4,000,000
The entity purchases the elevators and they are delivered to the site six
months before they will be installed. The entity uses an input method
based on cost to measure progress towards completion. The entity has
incurred actual other costs of 500,000 by March 31, 20 X1.
How much revenue the company recognize, if performance obligation is
met over a period of time?
Select one:
q £ 2,200,000
q £ 1,000,000
q £ 700,000
q None of the above
In X’s accounting books the value of financial assets is CU400 while their
market value is CU450. X wants to measure its financial assets at fair
20. value. Which of the following adjustment does X need to book in order to
correctly present its financial assets at fair value?
Select one:
q DR Financial Assets 50 CR Profit or Loss 50
q DR Profit or Loss 50 CR Financial Assets 50
q DR Financial Assets 450 CR Profit or Loss 450
q DR Profit or Loss 450 CR Financial Assets 450
The Musca Company took out a lease for an item of plant on 1 January
20X8 for 5 years. The company is responsible for all maintenance costs of
the plant over the term of the lease.
The asset has a fair value of CU14,000 and Musca will pay rentals of
21. CU3,710 at the end of each year for 5 years. The present value of the
minimum lease payments is CU13,930.
Under IFRS 16 Leases, at what amount should the plant be recognised on 1
January 20X8?
Select one:
q CU18,550
q CU14,000
q Nil
q CU13,930
22. IFRS 16 provide lease exemption for
Select one:
q Low value asset
q Lease less the 12 month (short term lease)
q Both of above
q None of the above
Are the following statements about treasury shares true or false,
according to IAS 32 Financial instruments: Presentation?
(1) Treasury share purchases are recognized as financial assets.
23.
(2) Any gain or loss on purchasing treasury shares is recognized in profit
or loss
Select one:
q Statement (1) : False Statement (2) : False
q Statement (1) : False Statement (2) : True
q Statement (1) : True Statement (2) : False
q Statement (1) : True Statement (2) : True
24. The Greenday Company acquired 30,000 4% Government Bonds
redeemable in 20X9 at the quoted market price of CU200. Greenday has
intention to sell the Bonds.
In accordance with IFRS 9 Financial instruments: recognition and
measurement, which ONE of the following is the most appropriate
classification for Greenday's investment in the Government Bonds?
Select one:
q at fair value through profit or loss
q at fair value through other comprehensive income
q amortised cost
q None of the above
Which of the following is not a category of financial assets defined in IFRS
25. 9?
Select one:
q Financial assets at fair value through profit or loss.
q at fair value through other comprehensive income
q amortised cost
q Held-for-sale investments.
Where should non controlling interests be presented in the consolidated
26. balance sheet?
Select one:
q Within long-term liabilities.
q In between long-term liabilities and current liabilities.
q Within the parent shareholders’ equity
q Within equity but separate from the parent shareholders’ equity.
The Pendle Company acquired a 30% equity interest in The Terata
27. Company many years ago. In the current accounting period it acquired a
further 40% equity interest in Terata.
Are the following statements true or false, according to IFRS 3 Business
combinations?
(1) Pendle's Pre-existing 30% equity interest in Terata should be
remeasured at fair value at the acquisition date.
(2) Pendle's net assets should be remeasured at fair value at the
acquisition date.
Select one:
q Statement (1) : False statement (2) : False
q Statement (1) : False Statement (2) : True
q Statement (1) : True statement (2) : False
q Statement (1) : True Statement (2) : True
The two categories of joint arrangement recognised by international
28. standard IFRS 11 are:
Select one:
q Joint operations and joint ventures
q Joint operations and joint enterprises
Good Luck
