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. There are a number of accounting standards and disclosures that may not provide useful information the users of SME financial statements. Which of the following topics does the standard for SMEs not address?

  2. There are certain accounting treatments that are not allowable under the standard for SMEs. Which of the following accounting treatments are not allowable under the standard?

  3. If SMEs choose to follow the standard, there are certain classifications of financial instruments that are not required by the standard. Which of the following statements is a key requirement of the standard, if SMEs choose to follow it?

  4. Which of the following statements reflects the accounting for financial instruments under the standard?

  5. The standard contains a section on transition that allows all of the exemptions in IFRS 1 'First-time Adoption of International Financial Reporting Standards'. It also contains certain exemptions for comparative information and the restatement of the opening statement of financial position. What is the basis for the latter exemptions to IFRS 1?

  6. The IFRS for SMEs is intended for use by certain types of entity. Which of the following descriptions accurately describes the definition of a SME used by the IASB?

  7. The IFRS for SMEs makes numerous simplifications to the recognition, measurement and disclosure requirements in full IFRSs. Which of the following is not a simplification of an accounting practice allowed by the standard?

  8. Which of the following approaches has the IASB taken in developing a standard for SMEs?

  9. Where financial statements are prepared using the standard, the basis of presentation note and the auditor's report will refer to compliance with the IFRS for SMEs. Which of the following statements suitable describes the nature of the compliance with the standard?

  10. The IASB sets effective dates for standards, which are sometimes prospective, and sometimes the standards become almost immediately effective. What is the effective date for the standard for SMEs?