Preparing for change

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Which of the following amendments will not relate to a set of financial statements ending in 2012?

  2. There is an amendment to IAS 1, Presentation of financial statements, which applies from 1 July 2012. The amendments to IAS 1 retain the one or two statement approach at the option of the entity and revise the way other comprehensive income (OCI) is presented. What is the revision to IAS 1 which affects the way OCI is presented?

  3. The revisions made to IAS 19, Employee benefits, are significant, and will impact most entities. They come into effect from 1 January 2013. The revisions change the recognition and measurement of defined benefit pensions expense and termination benefits and the disclosures required. Which of the following accounting practices has occurred as a result of the revisions to IAS 19?

  4. New and revised standards on group accounting were published in 2011. For example IFRS 10, Consolidated financial statements replaces IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities and sets out a single consolidation model that identifies control as the basis for consolidation for all types of entities. Which of the following implementation principles relates to these new standards?

  5. The European Financial Reporting Advisory Group (EFRAG) supports the adoption of the group accounting standards and recommends their endorsement. However, it does not support the mandatory effective date of 1 January 2013. Why does EFRAG not support the mandatory effective date for the new standards?

  6. IFRS 13, Fair value measurement, published in May 2011, deals with fair valuing in entities financial statements. A number of current IFRSs require entities to measure or disclose the fair value of assets, liabilities or equity instruments. Why was there a need for a standard on fair value measurement?

  7. The comment period for the updated exposure draft, Revenue from contracts with customers, closed recently. Most respondents agreed with many of the proposals but some expressed concerns over the standard. Which of the following were the main concerns for respondents?

  8. The FASB and IASB are proposing to fundamentally change the accounting for leases and are attempting to issue a second exposure draft by the end of 2012. The Boards are proposing a right-of-use model for lessees in which all leases are recognised on the statement of financial position at the commencement of the lease. What are the two key factors in initially measuring the right-of-use asset and lease liability for lessees?

  9. IFRS 9 Financial Instruments is being developed in three phases - classification and measurement, impairment and hedging. The IASB agreed in late 2011 to look at limited modifications to IFRS 9 for classification and measurement. Which of the following was a key amendment to IFRS 9?

  10. Which of the following is not a current requirement of IFRS 9?