Part 1

Question 1

What are asset?

Answer 1

• future benefit
• resources controlled by entity as a result of past event from which future benefits are expected to flow into the entity
• Consider substance vs legal form

Question 2

What are liabilities?

Answer 2

• present obligation of the entity arising from past event, the settlement of which is expected to result in an outflow from the entity of resources

Question 3

What are equity?

Answer 3

residual interest in the assets after deducting liabilities

Question 4

basic recognition criteria

Answer 4

• it is probable that any future economic benefit associated with the item will flow to or from the entity
• Item’s cost/value can be measured with reliability

Question 5

What are current cost (IFRS) and Replacement cost (ASPE)?

Answer 5

amount currently needed to acquire same asset or undiscounted amount required to settle the obligation

Question 6

What does IAS 36 state about impairment loss made in goodwill?

Answer 6

Impairment loss recognized for goodwill shouldn’t be reversed in subsequent period. Same with IFRIC 10 for any interim financial reports - shouldn’t reverse impairment loss recognized in previous interim period.

Question 7

What is IFRS 8?

Answer 7

Operating Segments. No corresponding ASPE

Question 8

Any entity should disclose separately a segment that meets ANY of the three threshold?

Answer 8

• 10% or more of combined revenue
• Profit or loss is 10% or more of the greater of combined profit or combined loss
• 10% or more combined asset
• If total reported revenue by segment is less then 75% of total revenue, additional segments must be identified even if it doesn’t meet criteria

Question 9

If segment no longer meets criteria but mgmt believes it will in the future

Answer 9

continue to disclose separately

Question 10

If segment meets threshold in current yr…

Answer 10

restate prior yrs figures for comparative purpose

disclose required

Question 11

What are IFRS 1 - First time adoption of IFRS Standards?

Answer 11

sets out requirement for entity preparing IFRS standards compliant F/S for the first time

Question 12

What are some important facts for IFRS 1 - first time adoption of IFRS standards?

Answer 12

retrospective restatement required and extensive disclosure required including reconciliations

Question 13

What are retrospective restatement for IFRS 1?

Answer 13

go back to date of inception and restatre acctg records to comply with IFRS with exception…

• when cost outweigh benefits
• Exceptions where retrospective application is prohibited

Question 14

What is the ASPE number for first time adoption of ASPE standards

Answer 14

ASPE: HB 1500, first time adption

Question 15

What are some points for ASPE first time adoption

Answer 15

Opening BS prepared based on ASPE applied on a retrospective basis. wouldn’t be necessarily same as closing BS - adjustment may be recorded in retained earned

Question 16

Comparative information

Answer 16

Present comparative info for prior period, if change in presentation or classification, reclassify comparative amount unless impractical (disclose)