Don't fall foul of the new IFRS 9 and IFRS 15 standards

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. Which two standards are being replaced by IFRS 15 Revenue from Contracts with Customers?

  2. Which of the following categories is retained under IFRS 9 Financial Instruments?

  3. Which of the following is the default category for equity investments under IFRS 9 Financial Instruments?

  4. Which, if any, of the following are tests used in the classification of debt instruments? Test 1 - The business model test, or Test 2 - The control test?

  5. Which of the following describes the impairment rules per IFRS 9 Financial Instruments?

  6. When should the loss allowance equal the expected lifetime credit losses?

  7. Which of the following are part of the 5-step process for recognising revenue under IFRS 15 Revenue from Contracts with Customers?

  8. Which, if any, of the following statements is correct? Statement 1 - Where a contract contains different performance obligations, revenue on the whole contract should be recorded based on the obligation which is most significant, or Statement 2 - Revenue on all performance obligations will be recognised at the point in time when the obligation is completed?

  9. Which of the following is true regarding discounts offered on a bundle of products/services?

  10. Which, if any, of the following statements is correct regarding the statement of financial position entries where a performance obligation is satisfied over time? Statement 1 - An entity should recognise a contract asset if the revenue exceeds the consideration received, but the amount to be received is not unconditional, or Statement 2 - An entity should record a contract liability if the consideration is received before the revenue is recognised?