PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for NBAA Certificate in IPSAS

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Tanzania NBAA CPA, ATEC and IPSAS

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

NBAA Accounting Technician Certificate ATEC

Practice Questions100 questions

NBAA CPA Final Level

Practice Questions100 questions

NBAA CPA Foundation Level

Practice Questions100 questions

NBAA CPA Intermediate Level

Practice Questions100 questions
Exam Review

Key Facts: NBAA Certificate in IPSAS Exam

2 Papers

C01 Closed & C02 Open

NBAA Examination Structure

50%

Minimum Passing Mark

NBAA Examiners Report August 2026

TZS 300,000

Examination Fee

NBAA March 2026 Intake Announcement

3 Hours

Duration Per Paper

NBAA August 2026 Timetable

4 Months

Course Duration

NBAA Intake Schedule

The NBAA Certificate in IPSAS qualifies Tanzanian finance and auditing personnel in public sector accounting standards. It is examined across two 3-hour papers: C01 Closed Book and C02 Open Book, with a 50% pass mark. The March 2026 intake fee structure includes TZS 25,000 application, TZS 700,000 tuition, and TZS 300,000 examination fee (total TZS 1,025,000).

Sample NBAA Certificate in IPSAS Practice Questions

Try these sample questions to review concepts for the NBAA Certificate in IPSAS exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under IPSAS 1 (Presentation of Financial Statements), which of the following is NOT one of the required complete set of financial statements for a public sector entity?
A.Value Added Statement
B.Statement of Financial Position
C.Statement of Financial Performance
D.Statement of Changes in Net Assets/Equity
Explanation: IPSAS 1.21 mandates a complete set of financial statements comprising: a Statement of Financial Position, Statement of Financial Performance, Statement of Changes in Net Assets/Equity, Cash Flow Statement, a comparison of budget and actual amounts (when the budget is publicly available), and Notes. A Value Added Statement is an optional supplementary report, not a required component under IPSAS 1.
2For this hypothetical ministry, the applicable law gives the Minister for Finance authority to authorize financial statements for issue. An accounting officer signs a draft on 15 August 2026, the audit is completed on 10 September, and the Minister authorizes issue on 20 September. Which date closes the events-after-reporting review window under IPSAS 14?
A.20 September 2026
B.15 August 2026
C.10 September 2026
D.The end of the financial year (30 June 2026)
Explanation: Authorization depends on the entity's governing process and the authority empowered to issue the statements. The scenario expressly assigns that authority to the Minister, who acts on 20 September; draft signatures and audit completion do not replace that decision.
3Under IPSAS 1, how should a public sector entity assess the 'Going Concern' assumption when preparing its financial statements?
A.Management must evaluate whether there is an intention or statutory decision to terminate the operations or liquidate the entity, or whether the ongoing provision of public services will continue
B.The entity must prove it generates sufficient commercial trading profit to cover all future operating costs without government transfers
C.The entity must have a positive net asset position; any net liability position automatically invalidates the going concern basis
D.Going concern is determined solely by the independent credit rating assigned by international rating agencies
Explanation: Public-sector going concern requires assessment of continuing service provision and the ability to meet obligations, including relevant funding arrangements. Commercial profit or a positive net asset balance is not an automatic prerequisite; material uncertainties still need appropriate assessment and disclosure.
4A government agency holds a commercial bank overdraft of TZS 50,000,000 with Bank A and a positive operating bank account balance of TZS 120,000,000 with Bank B. Can the agency offset these two balances and present a single net cash asset of TZS 70,000,000 on its Statement of Financial Position under IPSAS 1?
A.No, assets and liabilities shall not be offset unless offsetting is explicitly required or permitted by an IPSAS
B.Yes, offsetting is mandatory whenever cash balances are held within the same domestic banking system
C.Yes, provided both accounts are denominated in Tanzanian Shillings
D.No, unless the agency obtains written approval from the Controller and Auditor General
Explanation: IPSAS 1.48 establishes the general principle: 'Assets and liabilities, and revenue and expenses, shall not be offset unless offsetting is required or permitted by an IPSAS.' Because Bank A and Bank B are separate legal counterparties with no legally enforceable right of set-off, the overdraft must be reported as a current liability and the positive balance as a current asset.
5Under IPSAS 1, which of the following liabilities must be classified as a CURRENT liability?
A.A borrowing due in 8 months, with no right at the reporting date to defer settlement for at least 12 months
B.A 5-year development loan from an international financial institution with 4 years remaining until maturity
C.A provision for hospital decommissioning that will fall due in 6 years
D.A lease liability where payments commence in 24 months
Explanation: The borrowing is due in eight months and the entity lacks a right at the reporting date to defer settlement beyond twelve months. It is therefore current; the original label 'long-term borrowing' does not override its present maturity and settlement rights.
6A government agency has operating expenses of TZS 4,500,000,000 classified by nature: employee costs TZS 2,800,000,000, depreciation TZS 600,000,000, maintenance TZS 700,000,000, and other operating expenses TZS 400,000,000. Under IPSAS 1, what alternative presentation format for expenses is permitted in the Statement of Financial Performance?
A.Classification of expenses by function (e.g., health services, education, general administration)
B.Classification of expenses by parliamentary constituency
C.Classification of expenses by vendor tax identification number
D.Classification of expenses by cash denomination currency
Explanation: IPSAS 1 permits expense analysis by nature or by function, whichever supplies reliable and more relevant information. An entity using function also discloses additional nature information, including depreciation, amortization, and employee benefits; the listed numerical amounts do not require a particular functional allocation.
7Management concludes in an extremely rare case that applying an IPSAS requirement would conflict with the objective of financial statements by being seriously misleading. The relevant regulatory framework expressly prohibits departure. Under IPSAS 1, what should management do?
A.Comply with the requirement and use the prescribed disclosures to reduce the perceived misleading effects as far as possible
B.Depart immediately because management's conclusion overrides an express regulatory prohibition
C.Omit the affected transaction entirely so that no departure needs to be disclosed
D.Apply the requirement but conceal management's conclusion because the regulator prohibits departure
Explanation: IPSAS 1 distinguishes frameworks that allow departure from those that prohibit it. In this prohibited-departure case the entity complies and supplies the required explanation and financial-effect information to reduce the misleading effects; management's conclusion is not unrestricted permission to override a standard.
8A hospital holds pharmaceuticals for distribution within its normal 15-month operating cycle costing TZS 80 million, an unrestricted bank deposit of 20 million, and equipment with a carrying amount of 100 million for use over five years. Assume no measurement adjustments and a reliable current/non-current presentation. What total is classified as current assets under IPSAS 1?
A.TZS 100 million
B.TZS 20 million
C.TZS 200 million
D.TZS 80 million
Explanation: Inventory consumed or distributed within the normal operating cycle is current even where that cycle exceeds twelve months. Current assets are therefore 80 + 20 = TZS 100 million; the five-year equipment remains non-current.
9Which of the following items is presented within 'Net Assets/Equity' on the Statement of Financial Position of a public sector entity under IPSAS 1?
A.Contributed capital, accumulated surpluses or deficits, and statutory reserves
B.Short-term accounts payable and trade accruals
C.Finance lease obligations due after five years
D.Unearned revenue from commercial licensing fees
Explanation: Net Assets/Equity is the residual measure in public sector balance sheets, defined as total assets minus total liabilities. Under IPSAS 1, it encompasses contributed capital, accumulated surpluses or deficits, and specific reserves (such as revaluation surpluses).
10An authority already applying IPSAS 45 elects for the first time to revalue an entire PPE class under its current value model instead of using historical cost. How does IPSAS 3 treat this policy change?
A.As a revaluation under IPSAS 45 rather than an ordinary retrospective policy change under IPSAS 3
B.Retrospectively with restatement of all historical comparative statements since incorporation
C.As an extraordinary expense in the current period surplus or deficit
D.Directly by adjusting opening cash and cash equivalents
Explanation: IPSAS 3 excludes initial adoption of an asset revaluation policy from its ordinary retrospective policy-change rules. Apply IPSAS 45's revaluation requirements; this scenario is not first-time adoption of IPSAS 45 itself, which has its own transition provisions.

About the NBAA Certificate in IPSAS Exam

Independent study practice for the NBAA Certificate in IPSAS, an assessed professional qualification for public-sector accountants and auditors in Tanzania. This English-language MCQ study adaptation teaches the standards examined in C01 and C02—including IPSAS 1, IPSAS 2, the Conceptual Framework, IPSAS 45, IPSAS 21, IPSAS 39, IPSAS 24, and IPSAS 12. It is not an official translation, full format simulation, or substitute for written financial statements, calculations, and open-book application.

Exam sponsor: National Board of Accountants and Auditors (NBAA) Tanzania. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

C01 Closed Book and C02 Open Book are written papers. The updated August 2026 timetable schedules C02 on 2 September and C01 on 4 September, both 14:00–17:00. In that session C01 covered cash flows, the Conceptual Framework, presentation, PPE, impairment, and events after reporting; C02 covered statement preparation, the Framework, employee benefits, budgets, and inventories. These are reported session topics rather than permanent paper-specific boundaries.

Time Limit

6 hours total (3 hours per paper)

Passing Score

50% minimum pass mark (50–100 marks band)

Exam / Certification Fees

TZS 300,000 examination fee

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

16 study questions

IPSAS 1: Presentation of Financial Statements

Components of public sector financial statements, statement of financial performance, statement of financial position, going concern, and date of authorization.

12 study questions

IPSAS 2: Cash Flow Statements

Operating, investing, and financing cash flows, direct vs indirect methods, and public sector entity cash flow reconciliations.

14 study questions

Conceptual Framework for Public Sector Entities

Objectives of GPFR, qualitative characteristics (QCs), constraints, elements of financial statements, and measurement bases.

12 study questions

IPSAS 45: Property, Plant and Equipment

Deemed cost for donated PPE, historical cost and current value models, current operational value, software versus PPE, and component depreciation under IPSAS 45.

10 study questions

IPSAS 21: Impairment of Non-Cash-Generating Assets

Identifying impairment, recoverable service amount, depreciated replacement cost, and accounting for impairment losses in public dispensaries and hospitals.

8 study questions

Events After the Reporting Date (IPSAS 14)

Distinguishing adjusting vs non-adjusting events, conditions existing at reporting date, authorization date relevance, and disclosure rules.

12 study questions

IPSAS 39: Employee Benefits

Short-term benefits, accumulating annual leave liabilities, non-accumulating sick leave, performance bonuses, and subsidized housing.

8 study questions

IPSAS 24: Presentation of Budget Information

Comparison of budget and actual amounts, reporting basis reconciliation, and explanation of material budgetary differences.

8 study questions

IPSAS 12: Inventories

Cost versus NRV for sale inventory; cost versus current replacement cost for 2026 distribution scenarios without early adoption of the amendments effective in 2028; write-downs and reversals.

Preparing for the NBAA Certificate in IPSAS Exam

What You Need to Know

  • Passing score: 50% minimum pass mark (50–100 marks band)
  • Assessment: C01 Closed Book and C02 Open Book are written papers. The updated August 2026 timetable schedules C02 on 2 September and C01 on 4 September, both 14:00–17:00. In that session C01 covered cash flows, the Conceptual Framework, presentation, PPE, impairment, and events after reporting; C02 covered statement preparation, the Framework, employee benefits, budgets, and inventories. These are reported session topics rather than permanent paper-specific boundaries.
  • Time limit: 6 hours total (3 hours per paper)
  • Exam / certification fees: TZS 300,000 examination fee Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NBAA Certificate in IPSAS: Suggested Study Strategy

1Learn to compute impairment losses for non-cash-generating public assets under IPSAS 21 using the depreciated replacement cost approach.
2Carefully distinguish between adjusting and non-adjusting events under IPSAS 14 based on whether conditions existed at the reporting date.
3For 2026 inventory scenarios without early adoption of the August 2025 amendments, distinguish lower of cost and current replacement cost for free distribution from lower of cost and NRV for sale. The new current operational value amendments take effect in 2028, with early application permitted.
4For IPSAS 39, calculate accumulating compensated absence liabilities while treating non-accumulating sick leave as an expense only when the absence occurs.

Frequently Asked Questions

How is the NBAA Certificate in IPSAS examined?

There are two written papers: C01 Closed Book and C02 Open Book. The updated timetable for the August 2026 session placed C02 on 2 September and C01 on 4 September, each 14:00–17:00. The March 2026 intake announcement specifies physical examinations in Arusha, Dar es Salaam, and Dodoma. Check the timetable for each sitting.

What is the passing mark for the Certificate in IPSAS?

The passing mark is 50% (classified within the 50–100 marks band). Candidates must pass both C01 and C02; a candidate failing one paper is referred to re-sit that paper in the next session.

What are the latest intake fees and duration?

According to the March 2026 (5th Intake) announcement, the course runs for 4 months. Fees are application fee TZS 25,000, tuition fee TZS 700,000, and examination fee TZS 300,000, totaling TZS 1,025,000.

Does IPSAS 45 replace IPSAS 17 in current NBAA examinations?

IPSAS 45 replaced IPSAS 17 for periods beginning on or after 1 January 2025, and NBAA's August 2026 Certificate report explicitly identifies IPSAS 45. Study its historical cost and current value models, including current operational value for assets held primarily for operational capacity.

Are official assessment languages or additional compulsory components confirmed?

The reviewed NBAA intake announcement, timetable, and examiner report do not specify permitted assessment languages or establish a separate mandatory assignment, oral, practical, or case-study component. Do not infer absence of such requirements; confirm current conditions with NBAA. This English-language bank is not an official translation.

Does this practice test simulate the open-book exam format?

No. This practice bank is an independent English-language MCQ study adaptation by OpenExamPrep. It tests knowledge, judgment, and calculations across the syllabus, but does not simulate open-book paper formatting or replace drafting full financial statements.