Covering all eventualities

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 of the following statements is NOT true?

  2. Which of the following is NOT a suggested topic for inclusion in management commentary?

  3. According to the definitions of IFRS 7, which are sub-categories of market risk? (i) currency risk, (ii) interest rate risk, (iii) other price risk

  4. In relation to management commentary, which of the following is NOT a basic principle?

  5. What type of risks should be focussed on in management commentary?

  6. The quantitative disclosure requirements of IFRS 7 should be based on information provided to whom?

  7. According to the definitions of IFRS 7, which of the following should be part of a qualitative discussion of risk in respect of financial instruments? (i) how the risk exposure arises. (ii) the methods used to measure the risk, (iii) the results of external auditors tests on controls

  8. IFRS 7 requires sensitivity analysis to be provided in relation to which type of risk?

  9. Which of the following is a TRUE statement in relation to management commentary?

  10. Which user groups should an entity focus on when producing information on risk exposure?