29 November 2023

Preparing for IFRS 18

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. When is IFRS 18 likely to be issued?

  2. When is IFRS 18 proposed to be applicable from?

  3. Which, if any, of the following statements are true? Statement 1, The proposed changes will be mandatory, or Statement 2, The proposals will be applied retrospectively

  4. IFRS 18 replaces which IFRS Accounting Standard?

  5. Which of these is a new subtotal which will be required in the statement of profit or loss?

  6. Where would income or expenses from the main business activities be recorded?

  7. Where would income or expenses from associates or joint ventures using the equity method be recorded?

  8. Which of these statements is true regarding the proposals? Statement 1, A gain or loss on disposal of an item will go in the same category as the income and expenses relating to that item were initially recorded, or Statement 2, Entities whose main business is providing finance to customers can record income and expenses linked to raising finance in the operating category

  9. Where will income and expenses relating to foreign exchange differences be recorded?

  10. Which, if any, of the following statements is correct? Statement 1, Discontinued operations will continue to be recorded separately in the statement of profit or loss, or Statement 2, Entities must classify expenses by function

1 Unit