Free Practice Questions for Korea IFRS Manager

Conceptual Framework & Presentation (개념체계 및 재무제표 표시)

K-IFRS Conceptual Framework for Financial Reporting (재무보고를 위한 개념체계): objectives of general purpose financial reporting, primary users (existing and potential investors, lenders, and other creditors), fundamental qualitative characteristics (relevance / 목적적합성, faithful representation / 표현충실성) and enhancing qualitative characteristics (comparability / 비교가능성, verifiability / 검증가능성, timeliness / 적시성, understandability / 이해가능성); elements of financial statements (assets, liabilities, equity, income, expenses); recognition and derecognition criteria; measurement bases (historical cost / 역사적원가, fair value / 공정가치, value in use / 사용가치, fulfillment value / 이행가치, current cost / 현행원가). K-IFRS 1001 Presentation of Financial Statements (재무제표 표시): fair presentation, compliance with K-IFRS, going concern, accrual basis of accounting, materiality and aggregation, offsetting prohibition, frequency of reporting, comparative information, complete set of financial statements, statement of financial position (current vs non-current distinction), statement of profit or loss and other comprehensive income (items reclassified subsequently to profit or loss vs items not reclassified), statement of changes in equity, notes. K-IFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors (회계정책, 회계추정의 변경 및 오류): retrospective application for policy changes and error corrections vs prospective application for changes in accounting estimates. K-IFRS 1010 Events after the Reporting Period (보고기간후사건): adjusting events (수정사건) vs non-adjusting events (비수정사건).

Asset Accounting & Impairment (자산회계 및 손상)

Inventories (재고자산) under K-IFRS 1002: components of cost of purchase, conversion costs, other costs, cost formulas (FIFO / 선입선출법, weighted-average / 가중평균법, prohibition of LIFO / 후입선출법 금지), lower of cost and net realizable value (순실현가능가치 / NRV), inventory valuation loss (평가손실) and reversal limitations, inventory obsolescence/shrinkage loss (감모손실: normal vs abnormal). Property, Plant and Equipment (유형자산) under K-IFRS 1016: initial measurement and cost components (site preparation, initial delivery, installation, testing costs less proceeds, decommissioning/restoration obligation present value), subsequent costs (capital expenditure vs revenue expenditure), depreciation methods (straight-line, diminishing balance, units of production), component depreciation, revaluation model (재평가모형) vs cost model, revaluation surplus recognition in OCI and transfer to retained earnings upon disposal or through usage. Borrowing Costs (차입원가) under K-IFRS 1023: qualifying assets (적격자산), capitalization period (commencement, suspension, cessation), specific borrowings (실제 발생 차입원가 minus temporary investment income) vs general borrowings (capitalization rate / 자본화이자율 applied to excess expenditures). Intangible Assets (무형자산) under K-IFRS 1038: definition (identifiability, control, future economic benefits), research phase expenses (연구단계 비용 즉시 인식) vs development phase capitalization criteria (개발단계 자산인식 6대 요건: 기술적 실현가능성, 완성의도, 사용/판매능력, 미래경제적효익, 자원확보, 원가측정가능성), amortizable finite useful life vs non-amortizable indefinite useful life. Impairment of Assets (자산손상) under K-IFRS 1036: impairment indicators, recoverable amount (회수가능액: higher of fair value less costs of disposal and value in use), cash-generating unit (현금창출단위 / CGU), impairment loss allocation (first to goodwill, then pro rata to other assets), reversal of impairment losses (prohibition of goodwill impairment reversal, carrying amount ceiling if no impairment had occurred). Investment Property (투자부동산) under K-IFRS 1040: definition (property held to earn rentals or for capital appreciation), cost model vs fair value model (fair value changes recognized in profit or loss / 당기손익), transfers between categories (owner-occupied to investment property under fair value model: surplus in OCI).

Liabilities, Equity & Leases (부채, 자본 및 리스회계)

Financial Liabilities & Bonds (금융부채 및 사채) under K-IFRS 1032 and K-IFRS 1109: classification at amortized cost (상각후원가) vs FVPL (당기손익-공정가치측정), initial measurement at fair value less transaction costs (사채발행비 차감), effective interest method (유효이자율법) amortization of bond discount/premium, early redemption gain or loss (사채조기상환손익), compound financial instruments (복합금융상품: convertible bonds / 전환사채 and bonds with warrants / 신주인수권부사채, bifurcation into liability component at market interest rate of plain vanilla debt and residual equity component / 전환권대가, accounting for conversion/exercise). Provisions, Contingent Liabilities & Contingent Assets (충당부채, 우발부채 및 우발자산) under K-IFRS 1037: criteria for provision recognition (present legal or constructive obligation, probable outflow > 50%, reliable estimate), best estimate measurement and time value of money discounting, unwinding of discount (이자비용 인식), warranty provisions, onerous contracts (손실부담계약), restructuring provisions (구조조정충당부채: detailed formal plan and valid expectation), disclosure rules for contingent liabilities and contingent assets. Leases (리스) under K-IFRS 1116: lease definition and contract assessment, lessee accounting: recognition of right-of-use (ROU) asset (사용권자산: initial lease liability + payments at or before commencement + initial direct costs + restoration costs - lease incentives) and lease liability (리스부채: PV of unpaid lease payments discounted at interest rate implicit in the lease or incremental borrowing rate), subsequent measurement (ROU depreciation over shorter of lease term and useful life, lease liability effective interest amortization), short-term lease and low-value asset practical expedients, lessor accounting (finance lease vs operating lease, net investment in the lease, manufacturer/dealer lessor selling profit). Employee Benefits (종업원급여) under K-IFRS 1019: short-term employee benefits, post-employment benefits: defined contribution (DC / 확정기여형: accrued expense when earned) vs defined benefit (DB / 확정급여형: projected unit credit method, present value of defined benefit obligation / DBO, plan assets / 사외적립자산, net defined benefit liability/asset, components of DB cost: service cost in P&L, net interest in P&L, remeasurements / 재측정요소 in OCI with no subsequent reclassification to P&L).

Revenue, Income Taxes & Financial Instruments (수익, 법인세 및 금융상품)

Revenue from Contracts with Customers (고객과의 계약에서 생기는 수익) under K-IFRS 1115: 5-step model (Step 1: Identify contract with customer; Step 2: Identify performance obligations / 수행의무 식별 - distinct goods or services; Step 3: Determine transaction price / 거래가격 산정 - variable consideration / 변동대가, significant financing component, non-cash consideration, consideration payable to customer; Step 4: Allocate transaction price based on relative stand-alone selling prices / 상대적 개별판매가격 기준 거래가격 배부; Step 5: Recognize revenue when/as performance obligations are satisfied - over time / 진행기준 vs at a point in time / 한 시점), principal vs agent considerations (본인 대 대리인), customer options for additional goods/services (material right, allocation of consideration to loyalty points), warranty obligations (assurance-type vs service-type warranties), contract costs (incremental costs of obtaining a contract, fulfillment costs). Income Taxes (법인세) under K-IFRS 1012: taxable temporary differences (가산할 일시적차이) resulting in deferred tax liabilities (이연법인세부채), deductible temporary differences (차감할 일시적차이) resulting in deferred tax assets (이연법인세자산), recognition criteria for deferred tax assets based on probable future taxable profit, tax rate enacted or substantively enacted for reversal periods, allocation of current and deferred tax to P&L, OCI, or directly to equity, presentation and offsetting of tax assets and liabilities. Earnings Per Share (주당이익 / EPS) under K-IFRS 1033: basic EPS (기본주당순이익 = net income attributable to ordinary equity holders divided by weighted average number of ordinary shares), adjustments for bonus issues, share splits, and rights issues, diluted EPS (희석주당순이익: convertible bonds / 전환사채 via if-converted method, share options and warrants via treasury share method / 자기주식법, anti-dilutive instruments exclusion). Statement of Cash Flows (현금흐름표) under K-IFRS 1007: operating activities (영업활동: direct method vs indirect method reconciliation), investing activities (투자활동: acquisition/disposal of PPE, intangible assets, investments), financing activities (재무활동: issuance/redemption of shares, borrowings, dividend payments), accounting policy choices for interest and dividends received/paid, non-cash investing and financing disclosures. Financial Instruments (금융상품) under K-IFRS 1109: classification and measurement of financial assets based on business model test and contractual cash flow characteristics (SPPI test) into Amortized Cost (AC / 상각후원가측정), Fair Value through Other Comprehensive Income (FVOCI / 기타포괄손익-공정가치측정: debt instruments with recycling vs equity instruments irrevocable option without recycling), and Fair Value through Profit or Loss (FVPL / 당기손익-공정가치측정), initial measurement at fair value (plus transaction costs for AC and FVOCI, expensed for FVPL), expected credit loss (ECL / 기대신용손실) 3-stage impairment model: Stage 1 (12-month ECL), Stage 2 (significant increase in credit risk / SICR - lifetime ECL), Stage 3 (credit-impaired - lifetime ECL, interest revenue calculated on net carrying amount).