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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)