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Wiley lFRS: Practicallmplementation Guide and Workbook
MULTIPLE·CHOICE QUESTIONS
1.
lAS 26 deals with
(a) Employers' accounting for the cost of retire–
ment benefit s.
(b) General-purp ose financial statements of fi–
nancial reports of retirement benefit plans.
(c) Only defined contribution plans and not de–
fined benefit plans.
(d) Only defined benefit plans and not defined
contribution plans.
Answer: (b)
2. In rare circumstances, when a retirement benefit
plan has attributes of both defined contribution and
defined benefit plans, according to lAS 26 it is
deemed
(a) Defined benefit plan.
(b) Defined contributi on plan.
(c) Neither a defined benefi t nor a defined con–
tribution plan .
(d) For aspects of the hybrid plan that are simi–
lar to a defined benefit plan : provisions of
lAS 26 applicable to such plans are to be
applied; for aspects of the hybrid plan that
are similar to a defined contribution plan,
provisions of lAS 26 that apply to such
plans are to be applied.
Answer: (a)
3. In the case of a defined benefit plan, lAS 26
(a) Makes it incumbent upon the plan to obtain
an actuarial valuation.
(b) Does not make it incumbent upon the plan to
obtain an actuarial valuation.
(c) Allows the plan to estimate the present value
of future benefits based on valuations done
by other similar plans.
(d) Allows the plan to add a percentage based
on consumer price index to the previous
year's valuation of actuarial valuation.
Answer: (b)