IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley [FRS: Practical Implementation Guide and Workbook

MULTIPLE·CHOICE QUESTIONS 1. Which of the following reports is not a compo– nent of the financial statements according to lAS I? (a) Balance sheet. (b) Statement of changes in equity. (c) Director's report . (d) Notes to the financial statements. Answer: (e) 2. XYZ Inc. decided to extend its reporting period from a year (l2-month period) to a IS-month period. Which of the following is not required under lAS I in case of change in reporting period? (a) XYZ Inc. should disclose the reason for using a longer period than a period of 12 months. (b) XYZ Inc. should change the reporting pe– riod only if other similar entities in the geographical area in which it generally operates have done so in the current year; otherwise its financial statements would not be comparable to others. (c) XYZ Inc. should disclose that comparative amounts used in the financial statements are not entirely comparable. Answer: (b) 3. Which of the following information is not specifically a required disclosure of lAS I? (a) Name of the reporting entity or other means of identification, and any change in that information from the previous year. (b) Names of major/significant shareholders of the entity. (c) Level of rounding used in presenting the financial statements . (d) Whether the financial statements cover the individual entity or a group of entities. Answer: (b) 4. Which one of the following is not required to be presented as minimum information on the face of the balance sheet, according to lAS I? (a) Investment property . (b) Investments accounted under the equity method. (c) Biological assets. (d) Contingent liability . Answer: (d) 5. When an entity opts to present the income state– ment classifying expenses by function, which of the following is not required to be disclosed as "addi– tional information"? (a) Depreciation expense .

(b) Employee benefits expense. (c) Director's remuneration. (d) Amortization expense.

Answer: (e)