02 August 2022

Reporting proposals for SMEs

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

  1. What will be a key term in relation to the principles of revenue recognition going forwards?

  2. Under the new proposals, how should the incremental costs of obtaining a contract be initially recorded?

  3. The changes in revenue recognition will make IFRS for SMEs more comparable with which standard?

  4. Which, if any, of the following statements is/are true about the proposed IFRS for SMEs standard? Statement 1 - SMEs will have to amortise goodwill. Statement 2 - There will be more guidance on step acquisitions and step disposals.

  5. Which of these is a proposed change to financial instruments under IFRS for SMEs?

  6. What is the model which will be applied to assets held under amortised cost?

  7. Which, if any, of these statements is true in respect of the proposed treatment of accounting for leases under the IFRS for SMEs standard?

  8. Which, if any, of the following statements is/are true about the proposed changes to IFRS for SMEs? Statement 1 - Intangible assets will now be allowed to have an indefinite life. Statement 2 - The IASB is conducting further research to establish whether development costs should be capitalised.

  9. Which of the following, if any, reflects the proposed treatment of contingent consideration in respect of a subsidiary under IFRS for SMEs?

  10. Which, if any, of the following statements is/are true about the proposed changes to IFRS for SMEs? Statement 1 - Non-controlling interests must now be measured using the fair value model. Statement 2 - Direct costs associated with acquiring a subsidiary must now be expensed.