Mongolian CPA (Монгол Улсын мэргэшсэн нягтлан бодогч, MonICPA) Feed

Question

Under IAS 1 Presentation of Financial Statements, which of the following is a mandatory component of a complete set of financial statements?

Financial Reporting

Question · Medium

Question

Under IAS 2 Inventories, which cost formula is explicitly prohibited for measuring the cost of inventories of items that are ordinarily interchangeable?

Financial Reporting

Question · Easy

Question

An entity acquires a manufacturing machine for 120,000,000 MNT. It incurs trade discounts of 10,000,000 MNT, import duties of 6,000,000 MNT, non-refundable purchase taxes of 11,000,000 MNT, initial delivery and handling costs of 4,000,000 MNT, and staff training costs on operating the machine of 3,000,000 MNT. Under IAS 16 Property, Plant and Equipment, what is the initial recognized cost of the machine?

Financial Reporting

Question · Hard

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An entity chooses the revaluation model under IAS 16 for an office building. On 31 December 2025, the building has a carrying amount of 500,000,000 MNT and a revalued fair value of 620,000,000 MNT. The building had no previous revaluation decreases. How should the 120,000,000 MNT revaluation surplus be recognized?

Financial Reporting

Question · Medium

Question

Under IAS 23 Borrowing Costs, which of the following is a mandatory condition for capitalizing borrowing costs directly attributable to the acquisition or construction of an asset?

Financial Reporting

Question · Medium

Question

An Ulaanbaatar coal-haulage company tests its truck fleet cash-generating unit (CGU) for impairment under IAS 36. Against which measure must it compare the CGU's carrying amount?

Financial Reporting

Question · Easy

Question

At year-end, Company A tests a machine for impairment. The machine has a carrying amount of 85,000,000 MNT. Its fair value less costs of disposal is 72,000,000 MNT, and its value in use is 78,000,000 MNT. What is the impairment loss to be recognized in profit or loss under IAS 36?

Financial Reporting

Question · Hard

Question

Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which criteria must ALL be met before a provision is recognized in the financial statements?

Financial Reporting

Question · Medium

Question

Under IAS 38 Intangible Assets, how should costs incurred during the research phase of an internal project be treated?

Financial Reporting

Question · Easy

Question

A mining enterprise in Mongolia spends 40,000,000 MNT developing an automated dispatch software tool. Up to 30 September 2025, 15,000,000 MNT was spent before technical feasibility and commercial viability were established. From 1 October to 31 December 2025, an additional 25,000,000 MNT was spent meeting all six IAS 38 capitalization criteria. How much should be recognized on the balance sheet as an intangible asset at 31 December 2025?

Financial Reporting

Question · Medium

Question

Under IFRS 15 Revenue from Contracts with Customers, what is the correct chronological sequence of the five-step revenue recognition model?

Financial Reporting

Question · Medium

Question

A telecommunications company enters into a 12-month contract with a customer to provide a smartphone and monthly network service for 100,000 MNT per month (total contract price 1,200,000 MNT). The phone is delivered immediately on Day 1. If sold separately, the smartphone standalone price is 600,000 MNT and the 12-month network service standalone price is 800,000 MNT (total standalone prices = 1,400,000 MNT). Under IFRS 15, how much revenue should be allocated to the smartphone and recognized on Day 1?

Financial Reporting

Question · Hard

Question

Under IFRS 16 Leases, how must a lessee initially measure the lease liability at the commencement date of the lease?

Financial Reporting

Question · Medium

Question

Under IFRS 16, which two recognition exemptions are available to a lessee, allowing lease payments to be expensed on a straight-line basis rather than recognizing a right-of-use asset and lease liability?

Financial Reporting

Question · Easy

Question

Under IFRS 9 Financial Instruments, what are the two criteria required for an entity to classify and measure a financial asset at Amortised Cost?

Financial Reporting

Question · Medium

Question

Parent Company acquires 80% of Subsidiary Company for 240,000,000 MNT in cash. At acquisition date, the fair value of Subsidiary's identifiable net assets is 250,000,000 MNT. Parent elects to measure the non-controlling interest (NCI) at its proportionate share of the acquiree's identifiable net assets. Under IFRS 3 Business Combinations, what is the goodwill arising on acquisition?

Financial Reporting

Question · Hard

Question

Under IFRS 10 Consolidated Financial Statements, an investor controls an investee if and only if the investor possesses which three elements?

Financial Reporting

Question · Medium

Question

Under IAS 7 Statement of Cash Flows, under which section must cash payments to acquire property, plant and equipment, and cash receipts from sales of equity instruments of other entities, be classified?

Financial Reporting

Question · Medium

Question

Under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, how must a material prior-period error discovered in the current accounting period be corrected?

Financial Reporting

Question · Medium

Question

Under IAS 10 Events after the Reporting Period, which of the following is an example of an ADJUSTING event after the reporting period?

Financial Reporting

Question · Medium

Question

Under ISA 200 Overall Objectives of the Independent Auditor, what level of assurance is the auditor required to obtain about whether the financial statements as a whole are free from material misstatement?

Audit Assurance

Question · Medium

Question

Under ISA 210 Agreeing the Terms of Audit Engagements, which of the following must be included in an audit engagement letter?

Audit Assurance

Question · Easy

Question

Under ISA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, how does the auditor distinguish between fraud and error?

Audit Assurance

Question · Easy

Question

Under ISA 315 (Revised 2019), what is the auditor's primary objective when performing risk assessment procedures?

Audit Assurance

Question · Easy

Question

Under ISA 320 Materiality in Planning and Performing an Audit, what is 'performance materiality' and why is it set by the auditor?

Audit Assurance

Question · Medium

Question

Under ISA 330 The Auditor's Responses to Assessed Risks, when is the auditor REQUIRED to design and perform tests of controls?

Audit Assurance

Question · Medium

Question

An audit senior at a Mongolian retailer must decide which evidence to rely on most. Which statement about the reliability of audit evidence matches the generalizations in ISA 500?

Audit Assurance

Question · Easy

Question

Under ISA 501 Audit Evidence — Specific Considerations for Selected Items, if inventory is material to the financial statements, what must the auditor do regarding the physical inventory count?

Audit Assurance

Question · Hard

Question

Under ISA 505 External Confirmations, what is the key difference between a positive confirmation request and a negative confirmation request?

Audit Assurance

Question · Medium

Question

An auditor tests a sample of 100 debtor accounts from a total population of 2,000 accounts. The sample results indicate that the accounts receivable balance is materially misstated, but in reality, the true population of 2,000 accounts is not materially misstated. What type of audit sampling risk has occurred?

Audit Assurance

Question · Medium

Question

A Mongolian mining client's year ends on 31 December and the auditor expects to sign the report on 20 March. Under ISA 560, what must the auditor do about events between those two dates?

Audit Assurance

Question · Medium

Question

Under ISA 570 (Revised) Going Concern, if the auditor concludes that the use of the going concern basis of accounting is appropriate, but a material uncertainty exists and is ADEQUATELY disclosed in the financial statements, what opinion must the auditor express?

Audit Assurance

Question · Medium

Question

An auditor discovers that an enterprise has omitted depreciation on all its buildings and equipment, resulting in an overstatement of profit by 45% and total assets by 30%. Management refuses to correct the error. The misstatement is both material and pervasive to the financial statements. Under ISA 705, what form of audit opinion must be issued?

Audit Assurance

Question · Hard

Question

Under ISA 705, in which situation must an auditor issue a DISCLAIMER of opinion?

Audit Assurance

Question · Medium

Question

Under ISA 706 (Revised) Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report, what is the primary purpose of an Emphasis of Matter paragraph?

Audit Assurance

Question · Medium

Question

Under the IESBA International Code of Ethics for Professional Accountants, which of the following is NOT one of the five fundamental principles?

Audit Assurance

Question · Easy

Question

The engagement partner's spouse owns 15% of the voting shares of a prospective audit client. Under the IESBA Code, what type of threat to independence is created, and what action is required?

Audit Assurance

Question · Hard

Question

Under ISA 230 Audit Documentation, what is the maximum recommended time limit for the auditor to assemble the final audit file after the date of the auditor's report?

Audit Assurance

Question · Medium

Question

During an audit of a commercial bank, the auditor identifies that management has overridden internal credit approval limits for loans issued to companies owned by members of the board of directors. Under ISA 260 and ISA 265, what is the auditor's immediate communication responsibility?

Audit Assurance

Question · Medium

Question

An auditor of a company listed on the Mongolian Stock Exchange is drafting the Key Audit Matters section. Under ISA 701, which matters qualify as Key Audit Matters (KAM)?

Audit Assurance

Question · Medium

Question

Company B has Days Sales Outstanding (DSO) of 45 days, Days Sales in Inventory (DSI) of 60 days, and Days Payables Outstanding (DPO) of 35 days. What is Company B's Cash Conversion Cycle (CCC)?

Financial Management

Question · Easy

Question

A trading firm in Ulaanbaatar sells 10,000 units of a product annually. The purchase order cost is 50,000 MNT per order, and the annual holding cost per unit is 4,000 MNT. Using the classic Economic Order Quantity (EOQ) model, what is the optimal order quantity?

Financial Management

Question · Medium

Question

An investor evaluates a capital project requiring an initial outlay of 100,000,000 MNT at Year 0. The project generates net cash inflows of 40,000,000 MNT at the end of Year 1, 50,000,000 MNT at the end of Year 2, and 40,000,000 MNT at the end of Year 3. The company's required discount rate is 10%. (Discount factors at 10%: Year 1 = 0.909, Year 2 = 0.826, Year 3 = 0.751). What is the Net Present Value (NPV) of the project?

Financial Management

Question · Hard

Question

A proposed equipment investment costs 60,000,000 MNT. At a discount rate of 12%, the project NPV is +4,000,000 MNT. At a discount rate of 16%, the project NPV is -2,000,000 MNT. Using linear interpolation, what is the estimated Internal Rate of Return (IRR) of the project?

Financial Management

Question · Hard

Question

Under the Capital Asset Pricing Model (CAPM), what is the expected cost of equity for a company if the risk-free rate is 8%, the market risk premium is 6%, and the company's equity beta is 1.25?

Financial Management

Question · Medium

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