Tariffs disrupt financial reporting

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.

What standard deals with the impairment of non-financial assets?

IFRS 9

IAS 36

IFRS 10

IFRS 17

The future cashflows of an entity factors primarily into which calculation?

All of the above

Historical cost

Carrying amount

Value in use

Which of the following represents 'double counting' of the risk factor associated with tariffs?

None of these

Increasing the future cashflows and increasing the discount rate used

Reducing the future cashflows and reducing the discount rate used

Reducing the future cashflows and increasing the discount rate used

Which, if any, of the following statements are true about the accounting for tariff uncertainty? Statement 1, Even solely domestic entities need to consider the impact of tariff uncertainty. Statement 2, Discount rates should increase in the light of uncertainty.

Both statements

Statement 2 only

Neither statement

Statement 1 only

The assessment of variable consideration is related to which standard?

IAS 38, Intangible Assets

IFRS 15, Revenue from Contracts with Customers

IFRS 5, Non-current Assets Held for Sale and Discontinued Operations

IAS 16, Property, Plant and Equipment

Which of the following should be considered in relation to future changes in plans regarding leased assets where entities are considering moving production facilities?

Potential termination costs

Potential impairment of leased assets

Potential onerous contracts

All of these

Amortisation of produced media content should be recorded where?

As revenue in the statement of profit or loss

None of these

As an expense in the statement of profit or loss

Through other comprehensive income

Which, if any, of the following statements are true in respect of going concern? Statement 1, If a material uncertainty exists, an entity should not use the going concern basis. Statement 2, Estimates surrounding material uncertainties must be disclosed.

Statement 2 only is correct

Neither statement is correct

Statement 1 only is correct

Both statements are correct

IAS 10, Events after the Reporting period, covers what period?

Events after the end of one reporting period up to the date of the next one

Events covering six months after the end of the reporting period

Events after the end of the reporting period up to the date the financial statements are authorised for issue

Events after the end of the reporting period up to the date of the AGM

Which, if any, of the following statements is true regarding events after the reporting period? Statement 1, Non-adjusting events can be ignored in the financial statements. Statement 2, Adjusting events provide evidence of conditions in existence at the reporting date.