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Wiley IFRS: Practical Implementation Guide and Workbook
MULTIPLE·CHOICE QUESTIONS
1.
What are the principal objectives of IFRS 7?
(a) To provide presentation and disclosure
requirements for financial instruments.
(b) To require disclosures about the significance
of financial instrumen ts for an entity's
financial position and financi al performance
and qualitative and quantitative information
about exposure to risks arising from
financial instruments.
(c) To set out specified balance sheet and
income statement format s for financial
entities.
(d) To require disclosures about an entity' s
exposure to off- balance-sheet instruments
and other complex transaction s.
Answer: (b)
2, Which of the following types of information does
IFRS 7 not require to be disclosed about the
significance of financ ial instrumen ts?
(a) Carrying amounts of categories of financial
instrumen ts.
(b) Fair values of financial instruments.
(c) Information about the use of hedge
accounting.
(d) Information about financial instruments,
contracts, and obligations under share-based
payment transaction s.
Answer: (d)
3. Which of the following types of information does
IFRS 7 not require to be disclosed about exposure to
risks arising from financial instruments?
(a) Qualitative and quantitative information
about market risk.
(b) Qualitative and quantitative information
about credit risk.
(c) Qualitative and quantitative information
about operational risk.
(d) Qualitative and quantitative information
about liquidity risk.
Answe r : (c)
4. How does IFRS 7 define "liquidity risk" ?
(a) The risk that an entity will encounter
difficulty in meeting obligations associated
with financial liabilities.
(b) The risk that an entity will encou nter
difficulty in disposing a financi al asset due
to lack of market liquid ity.
(c) The risk that an entity will encounter
difficulty in meeti ng cash flow needs due to
cash flow problems.
(d) The risk that an entity' s cash inflows will
not be sufficient to meet the entity's cash
outflows.
Answe r : (a)
5. When is an entity required
to
apply IFRS 7 for
the first time?
(a) For annual periods beginning on or after
January 1,2005.
(b) For annual periods beginning on or after
January I, 2006.
(c) For annual periods beginning on or after
January I, 2007.
(d) For annual periods beginn ing on or after
January 1,2010.
Answer : (c)