IFRS

Question 1

Who issues IFRS?

Answer 1

IASB

Question 2

Objective of IFRS framework

Answer 2

Provide Users with information

Question 3

What basis of accounting does IFRS use?

Answer 3

Accrual basis

Question 4

What are the two QUALITATIVE characteristics

Answer 4

Relevance and Faithful representation

Question 5

Relevance has what three components?

Answer 5

Makes a difference to USER, Predictive value, and Confirmatory value- Evaluates past

Question 6

Faithful Representation has what three components?

Answer 6

Complete, Neutral, and free from error

Question 7

What are the 4 Enhancing Characteristics?

Answer 7

Comparability, Understandability, Verifiability, and Timeliness

Question 8

Pervasive Constraint of IFRS?

Answer 8

Cost vs. Benefit

Question 9

Under IFRS- What is the criteria for an “Element” of the balance sheet and Income Statement

Answer 9

• Current or non current Asset or Liabilities
• Equity
• Income
• Expense

Question 10

Criteria for Recognition

Answer 10

• Probable future economic Benefit

- Can be measured reliably

Question 11

IFRS vs GAAP

Answer 11

• No Lifo
• Income instead of Revenue
• Comparative Financial statements required
• Profit instead of Net income

Question 12

IFRS PPE asset conversion method

Answer 12

Fair Value is most efficient

Question 13

Adjustments made for adopting IFRS get made in….

Answer 13

The entity’s Retained Earnings or equity

Question 14

IFRS Contingent Liability Definition

Answer 14

Uncertain Future Events

Question 15

GAAP Contingent Liability Definition

Answer 15

Probable, Reasonably Possible, or Remote

Question 16

Financial Assets- IFRS are recorded using which three methods?

Answer 16

Amortized Cost (Collect cash flows) , Fair Value through OCI (Sell financial assets), Fair value through Profit or Loss (everything else).

Question 17

Deferred Taxes IFRS uses what method?

Answer 17

Liability method

• All deferred tax liabilities must be reported
• Only “probable” deferred tax assets can be reported

Question 18

Deferred Tax assets and Liabilities are Current or Non-current on the Balance sheet?

Answer 18

Non-current

Question 19

Tax Rates for IFRS use

Answer 19

Enacted Tax rate or Substantially Enacted Tax rate

Question 20

GAAP tax rate uses

Answer 20

Just Enacted tax rate

Question 21

IFRS Investments in Subsidiaries are valued at…

Answer 21

Cost, Fair Value, Equity Method

Question 22

IFRS PP&E Valuation is recorded at..

Answer 22

Cost

Question 23

IFRS PP&E are valued using one of two options..

Answer 23

Cost model, Revaluation model

Question 24

Investment Properties are initially recorded at…

Answer 24

Cost

Question 25

Investment property under IFRS does not include..

Answer 25

Property used in the course of business

Question 26

Investment property under IFRS is revalued using...

Answer 26

Fair Value Model and revalued to fair value | -Profit or loss is recorded in current period on the Inc St.

Question 27

Investment property under IFRS is revalued using...

Answer 27

Cost Model -Cost - Accum Depreciation Fair value must still be disclosed in the note to the financial statements

Question 28

Leases under IFRS can be recorded as an investment property if measured at ..

Answer 28

Fair value

Question 29

Intangible assets are valued using which models?

Answer 29

Cost -Cost-Accum depre and impairment loss Revaluation model -Asset adjusted to Fair value, less accum depre

Question 30

If the substantial risks of ownership have passed to the lessee, then the lease must be accounted for as a ......

Answer 30

Financial Lease