AFM 291 Quiz Questions Flashcards
(11 cards)
Which of the following correctly identifies the four parts of the CPA Canada Handbook?
A) Part I: IFRS; Part II: ASPE; Part III: Accounting Standards for Not-for-Profit Organizations; Part IV: Accounting Standards for Pension Plans
B) Part I: ASPE; Part II: IFRS; Part III: Accounting Standards for Government Organizations; Part IV: Accounting Standards for Public Sector Entities
C) Part I: IFRS; Part II: ASPE; Part III: Accounting Standards for Government Organizations; Part IV: Accounting Standards for Public Sector Entities
D) Part I: ASPE; Part II: IFRS; Part III: Accounting Standards for Not-for-Profit Organizations; Part IV: Accounting Standards for Pension Plans
A
Understanding an entity’s business model is helpful in identifying revenue recognition and asset issues.
A) True
B) False
A
When determining the number of performance obligations in a contract with a customer, the IFRS Revenue Standard requires only one of the following to be true:
i. The customer can benefit from the good or service on its own or together with other resources that are readily available.
ii. The promises to deliver the goods and/or services are separately identifiable in the contract, and there is no significant integration, customization, or interdependency.
A) True
B) False
B
All performance obligations in a contract must be recognized in the same manner under IFRS 15.
A) True
B) False
B
The qualitative characteristics of useful financial information do not apply to sustainability-related financial information.
A) True
B) False
B
Recognition in financial statements refers to disclosure in the notes.
A) True
B) False
B
IFRS 18 introduces new categories and subtotals in the statement of profit or loss.
A) True
B) False
A
Transactions should be recorded based on their legal form rather than their economic substance.
A) True
B) False
B
Determining whether to lend to a company is a primary objective supported by the IFRS Conceptual Framework.
A) True
B) False
A
ASPE follows a completion-based model, while IFRS follows an accrual-based model.
A) True
B) False
B
ASPE is a performance based model while IFRS is a contract based model
The objective of IFRS 15 is to establish principles for reporting useful information about the nature, amount, timing, and uncertainty of revenue and cash flows from contracts with customers.
A) True
B) False
A
