IFRS

Question 1

IFRS 3 business combinations

Answer 1

IFRS 3 Business combinations
Definition:
Set of activities and assets
Provide goods or services
Generate investment income

Question 2

IFRS 5 NCA discontinued

Answer 2

IFRS 5 NCA Discontinued

• disposed or held for sale
• sale is probable
• commitment to sale within one year

Question 3

IFRS 9 Financial instruments

Answer 3

IFRS 9 Financial Instruments

• derecognised when cash flow received and contract passed over
• derecognised when no further rights to cash
• recognised at fair value

Question 4

IFRS 10 consolidated financial statement

Answer 4

IFRS 10 Consolidated Financial Statement (control)
Investor controls investee if;
-Power over investee
Ability to affect investor’s return
To assess control
-size of entity holding
-how dispersed shares are
-voting rights
-wether parties are related

Question 5

IFRS 11 Joint arrangements

Answer 5

Only when

• contractually agreed sharing of control
• exists when decisions require unanimous decision

Question 6

IFRS 13 Fair value

Answer 6

IFRS 13 Fair value measurement
-Value of an asset in market at specified measurement date
-Market based and not entity
Fair value categorised into three levels of measurement:
1) Quoted price of identical items in active markets
2) Similar items in active markets
3) Based on Management assumptions

Question 7

IFRS 15 Revenue from contracts

Answer 7

How to account materials and admin in contracts?
Only if specifically written in that customers will take over these expenses.
Contract is for 7 million but only cost 5 million
Recognise the 7 million
If Contract revenue is recognised over three years
Recognise as the contract goes along with discount rates

Question 8

IFRS 16 Lease liability

Answer 8

• recognised at PV of payments to be made
• includes fixed and variable
• reduced by cash payments