Extra

Question 1

What is withholding tax?

Answer 1

This is where the foreign country keeps (withholds) some tax on the dividend leaving

Question 2

What is underlying tax?

Answer 2

Underlying tax is the tax that has been charged on the profits which gave the dividends

Question 3

What does IAS 1 state?

Answer 3

Financial statements shall present fairly the financial position, financial performance and cash flows of an entity

Question 4

What is inventory value at?

Answer 4

Lower of costs and NRV

Question 5

Is selling inventory post year-end for lower than cost price an adjusting event?

Answer 5

Yes

Question 6

If a customer goes into liquidation is it an adjusting event?

Answer 6

Yes

Question 7

If a court case completes after year end is it a adjusting event?

Answer 7

Yes

Question 8

If an insurance claim completes after year end is it an adjusting event?

Answer 8

Yes

Question 9

Is an acquisition or disposal of a subsidiary after year end and adjusting event?

Answer 9

No

Question 10

If a company announces plans to discontinue an operation is it an adjusting event?

Answer 10

No

Question 11

If there is destruction of an asset due to flood or fire is it an adjusting event?

Answer 11

No

Question 12

If there is an announcement of plans to restructure is it an adjusting event?

Answer 12

No

Question 13

Is share capital transactions after reporting date an adjusting event?

Answer 13

No

Question 14

What is the IFRS Foundation responsible for?

Answer 14

appointing members of board
reviewing strategy of board
approving the annual budget
promoting the board
establishing and amending operating procedures

Question 15

What is the IASB responsible for?

Answer 15

Developing standards
preparation and publication of IFRS Standards, Exposure drafts
Withdrawal of standards
Interpretations of Interpretations comittee

Question 16

What are the objectives of the advisory council?

Answer 16

give advice to board on agenda decisions
inform board of the views of individuals
give advice to board or to the Trustees

Question 17

What are the two main responsibilities of the interpretations committee?

Answer 17

review new financial reporting issues not specifically addressed in IFRSs
Clarify issues where unsatisfactory or conflicting interpretations have developed developed

Question 18

What is the agressive approach?

Answer 18

reduce costs by holding lowest levels of inventory. Short operating cycle.

Question 19

What is the conservative approach?

Answer 19

reduce risks by holding high levels of inventory. Long operating cycle

Question 20

When is an impairment review required?

Answer 20

When there is an indication that an asset has been impaired

Question 21

What is included in investing activities?

Answer 21

Purchase of PPE
Purchase of investments
Proceeds from sale of PPE
Proceeds from sales of investments
Interest received
Dividends received

Question 22

What is included in financing activities?

Answer 22

Proceeds from issue of ordinary shares
Proceeds from issue of preference shares
Proceeds from long-term borrowing
Redemption of long-term borrowing
Dividends paid

Question 23

What is inventories value at?

Answer 23

Lower of cost and NRV

Question 24

Is upwards revaluation of PPE shown separately in statement of changes in equity?

Answer 24

Yes

Question 25

What is the two acceptable methods of determining cost of inventory?

Answer 25

LIFO
AVCO

Question 26

Should all non-adjusting events be disclosed?

Answer 26

No

Question 27

What is the recoverable amount before impairment?

Answer 27

Higher of value in use and fair value less cost to sell

Question 28

Is decorating an office a capital expenditure?

Answer 28

No

Question 29

Do you include dividends when calculating the tax charge?

Answer 29

No

Question 30

What are the characteristics of faithful representation?

Answer 30

Completeness
Neutrality
Free from error

Question 31

When will a item be recognised in the financial statements?

Answer 31

Meets definition of one of the elements
Relevant information on element
Faithful representation on element

Question 32

What is the definition of an organisation produced by Buchanana and Huczynski?

Answer 32

Organisations are social arrangements for the controlled performance of collective goals

Question 33

What are the two types of foreign tax?

Answer 33

Withholding tax
Underlying tax

Question 34

What is the process of IFRS Standards?

Answer 34

Exposure drafts
Followed by discussion papers
completed by standard

Question 35

What are the benefits of corporate governance?

Answer 35

Facilitates achievement of objectives in a less risky way
Enables efficient conduct of business

Question 36

Ways to finance exports

Answer 36

Documentary credit
Bills of exchange
Export Factoring
Forfaiting

Question 37

In the context of stewardship the relationship, where one person has a duty of care towards someone else is known as what?

Answer 37

Fiduciary relationship

Question 38

What does GAAP stand for?

Answer 38

Generally accepted accounting practices

Question 39

What is GAAP?

Answer 39

encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time.
Includes local legislation, accounting standards and any other local regulations

Question 40

What are some types of direct tax?

Answer 40

Trading income tax
Capital tax
Property tax
Wealth tax
Employment tax

Question 41

What are examples of indirect tax?

Answer 41

Excise duties
Consumption tax
Cascade tax
VAT
Sales tax