WH Smith goes to market

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

How are sales made by a joint venture shown in a consolidated statement of profit or loss?

As part of one line, ‘share of profits of joint venture’

Not shown

In revenue

In other comprehensive income

Under IFRS 8, what percentage of revenue makes a segment reportable?

20 percent

10 percent

5 percent

15 percent

Which, if any, of the following statements are true? Statement 1, entities must report revenue for reportable segments, or statement 2, entities must report a measure of profit or loss for reportable segments

Both statements

Statement 1 only

Statement 2 only

Neither statement

Which standard will deal with management performance measures?

IFRS 16

IFRS 18

IFRS 15

IAS 1

Which of the following items is true?

Under IFRS 16, no leased assets can be recorded on the balance sheet

Under IFRS 16, short-term lease exemptions can be applied to leases of less than five years

UK-listed entities must split lease liabilities between operating and financing

All lease liabilities should be recorded under IFRS 16

Which standard covers discontinued operations and non-current assets held for sale?

IFRS 5

IFRS 3

IAS 38

IFRS 15

Which of the following is a criticism of the use of alternative performance measures?

Neither of the answers

They are presented with undue prominence

They are often showing an inflated impression of performance

Both of the answers

Which of the following statements is true regarding non-current assets held for sale under IFRS 5? Statement 1, for an asset to qualify as held for sale, a sale must be highly probable, or statement 2, if assets are classified as held for sale, depreciation must cease immediately

Both statements are correct

Statement 2 only is correct

Neither statement is correct

Statement 1 only is correct

How must a discontinued operation be shown under IFRS 5?

As a separate line at the bottom of the statement of profit or loss

As a separate column in the statement of profit or loss