IFRS Test 2 Questions & Answers
2024/2025
a present economic resource controlled by the entity as a result of past events - ANSWERSIASB's
defintion of an asset
a right that has the potential to produce economic bneefits - ANSWERSeconomic resource
a present obligation of the entity to transfer an economic resource as a result of past events -
ANSWERSliability
a liability occurs under IASB when: - ANSWERSno practical ability to avoid the transfer
the obligation arises from past events
the residual interest in the assets of the entity after deducting all its liabilites - ANSWERSequity
increases in assets or decreases in liabilities that result in increases in equity - ANSWERSincome
decrease in assets or increases in liabilites that result in decreases in equity - ANSWERSexpenses
both income and expenses are other than those relating to - ANSWERScontributions from/distributions
to holders of equity claims
Without the clause: both income and expense are other than those relating to contributions
from/distribution to holders of equity claims dividends would be an - ANSWERSexpnese
Two categories of measurement under IASB - ANSWERShistorical cost
current value
,provides information derived from the transaction or event that created them - ANSWERShistorical cost
provides information that is updated to reflect conditions at the measurement date - ANSWERScurrent
value
the price that would be received to sell an asset or paid to transfer a liability - ANSWERSfair value
present value of cash flows expected from continuing use/fulfilment - ANSWERSvalue in use (asset) or
fulfilment value (liability)
recoverable cost of the unconsumed part of an asset - ANSWERSthe historical cost for the financial
position
price that would be received to transfer the asset - ANSWERSthe fair value at the financial position
the present value of estimated cash flows from continuing use - ANSWERSvalue in use for the financial
position
past costs consumed in current period - ANSWERSthe historical cost for reporting resources consumed in
the period
the value at time of consumptiion of resources consumed - ANSWERSthe fair value for reporting
resources consumed in the period
the cost at time of performance of resources consumed - ANSWERSthe value in use for reporting
resources consumed in the period
if changes in measurement are caused by impairment or passage of time use the - ANSWERShistorical
cost
if changes in measurment are caused by impairment; changes in interest rates, cash flow estimates,
amount of risk or price use the - ANSWERSfair value or vlaue in use
, refinanced short term debt is normally classified under GAAP as ___ ___; but under IFRS if it is
refinanced prior to the B/S date it is classified as _____. US GAAP allows it to be considered LT if it is
_____ or ____ prior to the B/S/ date - ANSWERSshort term
long term
refinanced
classified as a current liability unless a waiver is issued by the lender by the balance sheet date extending
a grace period of more than 12 months by the balance sheet date for IFRS - ANSWERSamount payable on
demand due to violation of debt covenant
For GAAP if the waiver is obtained by the ___ date the amount payable on demand due to violation of
debt covenant can be treated as long term
FOR IFRS it must be by the - ANSWERSissuance
B/S date extedning a grace period of > 12 months
Overdrafts under GAAP are always considered to be __ ____
OVer drafts under IFRS can - ANSWERScurrent liabilites
sometimes be netted against cash
U.S. GAAP only uses the term contingent liability
IFRS breaks the term into - ANSWERSprovision and contingent liability
liability of uncertain timing or amount - ANSWERSprovision
a POSSIBLE obligation whose existence will be confirmed by the occurence or non-occurence of future
events - ANSWERScontingent liability
Contingent liabilites are NOT recognized because: - ANSWERS1) it isnt probable that an outflow of
resources will be required to settle the obligation OR
2) the amount of the obligation cannot be reliably measured
2024/2025
a present economic resource controlled by the entity as a result of past events - ANSWERSIASB's
defintion of an asset
a right that has the potential to produce economic bneefits - ANSWERSeconomic resource
a present obligation of the entity to transfer an economic resource as a result of past events -
ANSWERSliability
a liability occurs under IASB when: - ANSWERSno practical ability to avoid the transfer
the obligation arises from past events
the residual interest in the assets of the entity after deducting all its liabilites - ANSWERSequity
increases in assets or decreases in liabilities that result in increases in equity - ANSWERSincome
decrease in assets or increases in liabilites that result in decreases in equity - ANSWERSexpenses
both income and expenses are other than those relating to - ANSWERScontributions from/distributions
to holders of equity claims
Without the clause: both income and expense are other than those relating to contributions
from/distribution to holders of equity claims dividends would be an - ANSWERSexpnese
Two categories of measurement under IASB - ANSWERShistorical cost
current value
,provides information derived from the transaction or event that created them - ANSWERShistorical cost
provides information that is updated to reflect conditions at the measurement date - ANSWERScurrent
value
the price that would be received to sell an asset or paid to transfer a liability - ANSWERSfair value
present value of cash flows expected from continuing use/fulfilment - ANSWERSvalue in use (asset) or
fulfilment value (liability)
recoverable cost of the unconsumed part of an asset - ANSWERSthe historical cost for the financial
position
price that would be received to transfer the asset - ANSWERSthe fair value at the financial position
the present value of estimated cash flows from continuing use - ANSWERSvalue in use for the financial
position
past costs consumed in current period - ANSWERSthe historical cost for reporting resources consumed in
the period
the value at time of consumptiion of resources consumed - ANSWERSthe fair value for reporting
resources consumed in the period
the cost at time of performance of resources consumed - ANSWERSthe value in use for reporting
resources consumed in the period
if changes in measurement are caused by impairment or passage of time use the - ANSWERShistorical
cost
if changes in measurment are caused by impairment; changes in interest rates, cash flow estimates,
amount of risk or price use the - ANSWERSfair value or vlaue in use
, refinanced short term debt is normally classified under GAAP as ___ ___; but under IFRS if it is
refinanced prior to the B/S date it is classified as _____. US GAAP allows it to be considered LT if it is
_____ or ____ prior to the B/S/ date - ANSWERSshort term
long term
refinanced
classified as a current liability unless a waiver is issued by the lender by the balance sheet date extending
a grace period of more than 12 months by the balance sheet date for IFRS - ANSWERSamount payable on
demand due to violation of debt covenant
For GAAP if the waiver is obtained by the ___ date the amount payable on demand due to violation of
debt covenant can be treated as long term
FOR IFRS it must be by the - ANSWERSissuance
B/S date extedning a grace period of > 12 months
Overdrafts under GAAP are always considered to be __ ____
OVer drafts under IFRS can - ANSWERScurrent liabilites
sometimes be netted against cash
U.S. GAAP only uses the term contingent liability
IFRS breaks the term into - ANSWERSprovision and contingent liability
liability of uncertain timing or amount - ANSWERSprovision
a POSSIBLE obligation whose existence will be confirmed by the occurence or non-occurence of future
events - ANSWERScontingent liability
Contingent liabilites are NOT recognized because: - ANSWERS1) it isnt probable that an outflow of
resources will be required to settle the obligation OR
2) the amount of the obligation cannot be reliably measured
