IFRS 16 to give balance sheet transparency a boost

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 re-read the article before attempting the questions again

  1. When is IFRS 16 effective?

  2. What is the proposed treatment for operating leases in the books of lessees?

  3. What is the major change in the statement of financial position of lessees?

  4. Which, if any, of the following statements regarding the proposed US GAAP changes to leases is/are correct? Statement 1 - The impact on balance sheet figures is likely to be the same as IFRS 16, Statement 2 - US GAAP will still allow a choice of treatments in the statement of profit or loss

  5. Which of the following ratios are likely to deteriorate following the introduction of IFRS 16?

  6. What is the expected impact on operating profit following the changes to IFRS 16?

  7. Which of the following industries is likely to be the most affected?

  8. Which, if any, of the following statements is correct? Statement 1 - EBITDA will be unchanged following the introduction of IFRS 16, Statement 2 - EBITDA will remain comparable between IFRS 16 and ASC 842

  9. What is the impact on the expected expense under IFRS 16?

  10. Which, if any, of the following statements is/are true? Statement 1 - All entities reporting under IFRS must comply with IFRS 16 from 1 January 2019, Statement 2 - Entities can choose to apply the standard retrospectively, or prospectively but with a cumulative adjustment to retained earnings