Under the IASB Conceptual Framework, what is the stated objective of general purpose financial reporting?
Role Of Financial Reporting
Question · Easy
ASC 606: the trailer
Short
Why does meeting an element definition not automatically require recognition under the Conceptual Framework?
Role and importance of financial reporting
Flashcard
Which two characteristics are identified as the fundamental qualitative characteristics of useful financial information in the IASB Conceptual Framework?
Statement element defined as a present economic resource the entity controls as a result of past events.
Concepts and framework
Guess the Term
Chapter 1: The Reporting Environment & Conceptual Framework
1.1 General Purpose Financial Reporting & The International Environment
Study guide
Under the Conceptual Framework, the four enhancing qualitative characteristics that increase the usefulness of information that is relevant and faithfully represented are:
Question · Medium
Read the clue and guess the term in 6 tries.
Game
A lessee has an AUD 40,000 initial lease liability, AUD 3,000 prepaid rent, AUD 2,000 qualifying initial direct costs and AUD 1,000 incentives received. No restoration obligation exists. What is initial right-of-use asset cost?
According to the Conceptual Framework, an asset is defined as:
Statement element: increases in assets or decreases in liabilities that raise equity, but never owners' paid-in contributions.
An entity is deciding whether to omit a particular item from its financial statements. Under the Conceptual Framework, information is material if:
Under IAS 19, where do actuarial remeasurements of a defined benefit obligation go?
Under the Conceptual Framework's mixed measurement model, which of the following is a current value measurement basis rather than a historical cost basis?
Accounting ___: the specific principles, bases, conventions, rules and practices applied in preparing and presenting financial statements, with voluntary changes applied retrospectively.
Statement presentation
1.2 Qualitative Characteristics & Elements of Financial Statements
Under IFRS 16 Leases, how does a lessee initially account for a lease (other than a short-term or low-value lease)?
Swap tiles to line up three of the same term.
Term Match
How does subsequent measurement differ for an ordinary employee equity-settled award and a cash-settled share appreciation right under IFRS 2?
A defined benefit plan has an obligation of $500,000 and plan assets of $580,000. The IAS 19 asset ceiling is $60,000. What net defined benefit asset is recognised?
Question · Hard
Word before 'period error': an omission or misstatement from an earlier period's statements, corrected retrospectively in the first authorised set issued after discovery.
Under IFRS 2 Share-based Payment, an equity-settled share-based payment transaction with employees in exchange for services is measured by reference to:
An IAS 40 investment property using the fair value model rises from AUD 410,000 to AUD 428,000 with no other changes. Where is the gain recorded?
Under IAS 40 Investment Property, if an entity adopts the fair value model, changes in the fair value of investment property are recognised:
___ concern: the assumption that the entity will continue in operation, unless management intends to liquidate it or cease trading, or has no realistic alternative.
1.3 Recognition, Derecognition & Measurement Bases
A complete set of financial statements under IAS 1 Presentation of Financial Statements must include all of the following EXCEPT:
Presentation Of Financial Statements
Flip two cards at a time to find matching terms.
Term Pairs
Under IAS 1, what makes a set of financial statements complete?
Presentation of financial statements
Financial statements for the year ended 30 June are authorised on 20 August. A customer owed an unsecured receivable at 30 June. Its insolvency on 10 July confirms reduced recoverability already existing at 30 June. Under IAS 10, this is:
Transaction ___: the amount of consideration an entity expects to be entitled to for transferring promised goods or services to a customer, excluding amounts collected for third parties.
Revenue and provisions
Under IAS 8, a voluntary change in an accounting policy is generally accounted for:
New evidence changes a machine’s remaining useful life. How does IAS 8 treat the revised depreciation estimate?
Under IAS 8, a change in the estimated useful life of an item of property, plant and equipment is treated as:
A chance of outflow so slight that a contingent liability is not even disclosed in the notes.
Chapter 2: Measurement Applications & Professional Judgement
2.1 Measurement Applications Across IFRS Standards
An IAS 16 upward revaluation does not reverse a previously expensed revaluation decrease. Which item is recognised in OCI?
Find five hidden terms in a grid of letters.
Term Search
Equity opens at AUD 100,000; profit is AUD 30,000, OCI AUD 5,000, shares issued AUD 20,000 and dividends AUD 10,000. With no other changes, what is closing equity?
Which OCI item is never subsequently reclassified to profit or loss under the applicable IFRS Standard?
Tax ___: the amount attributed to an asset or liability for tax purposes; for an asset, what will be deductible against taxable economic benefits as its carrying amount is recovered.
Income taxes
Under IAS 1, an entity must classify a liability as current when:
A customer’s post-year-end bankruptcy confirms financial distress already present at year end. How does IAS 10 classify the event?
For a non-financial entity applying IAS 7 before adoption of IFRS 18 and its consequential amendments, how may interest paid be classified?
___ forward: the tax treatment moving unused losses and credits into future periods, with a deferred tax asset recognised only to the extent future taxable profit is probable.
2.2 Materiality & Professional Judgement in Reporting
Under IAS 7, which of the following is classified as a cash flow from investing activities?
Finance Exam Prep Podcast
Listen on Spotify
Podcast
Loading more…