Statements across frontiers?

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. IAS 1, Presentation of Financial Statements, requires that an entity whose financial statements comply with International Financial Reporting Standards (IFRS) have to make an explicit and unreserved statement of such compliance in the notes. How can inappropriate accounting policies be rectified?

  2. In the absence of a specific applicable IFRS, an entity is required to consider various sources of guidance. Which of the following sources of guidance is not acceptable?

  3. IFRS permits a departure from specific requirements of IFRS and this is termed 'true and fair view' override. Under what circumstances is this departure allowed?

  4. The study by the SEC found that there were significant differences in the presentation of the statement of cash flows. Which of the following was not a finding of the report?

  5. What is the definition of a cash-generating unit under IAS 36, Impairment of Assets?

  6. One-third of the companies in the sample disclosed that they entered into transactions within the scope of IAS 40, Investment Property. What method of measurement of investment properties is set out in IAS 40?

  7. IFRS requires in IAS 37, Provisions, Contingent Liabilities and Contingent Assets, a provision to be recognised when an entity has a present obligation whether legal or constructive as a result of a past event. Which of the following criteria is not acceptable under IAS 37?

  8. IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations, requires certain conditions to be in force before items can be classified as 'held for sale' or 'discontinued'. Which of the following is not an acceptable criterion in determining the accounting for assets that are held for sale?

  9. There were several instances recorded in the survey in which local laws or accounting regulations required the use of a separate account within shareholders' equity to provide for specifically mandated reserves. Which IFRS deals with the accounting for separate reserves within shareholders equity?

  10. IFRS 38, Intangible Assets, defines an intangible asset as 'an identifiable, non-monetary asset without physical substance' and requires each entity to 'assess whether the useful life of an intangible asset is finite or indefinite.' Inn the sample, some companies determined that certain types of intangible assets had a finite life, while other companies determined that the same type of intangible assets had an indefinite life. What is the maximum life of an intangible asset under IAS 38?

  11. Question