CertIFR-M1

The Monitoring Board is responsible for:

A.Providing a link between the IFRS Foundation and public authorities

B.Deciding on a work plan for the IASB

C.All Answers

D.Approving IFRS Accounting Standards before publication

Question 1 of 13

$15,000 that a retailer expects to have to repay to customers that return purchased items within the 30- day statutory return period.

A.Asset

B.Neither

C.Liability

Question 2 of 13

$10,000 spent by a business to patent its technology.

A.Asset

B.Neither

C.Liability

Question 3 of 13

Faithful representation includes the concept that financial information represents the substance of transactions rather than their legal form. Which of the following demonstrates a situation in which the accounting treatment differs from the legal form of the transaction to ensure faithful representation?

A.An asset is leased and capitalised as a right-of-use asset by the entity that uses it

B.An asset is depreciated on the straight-line basis

C.The costs of a patent are capitalised

D.An allowance is made for receivables (doubtful debts)

Question 4 of 13

$100,000 losses expected by a car manufacturer in the upcoming financial year as a result of economic recession.

A.Asset

B.Neither

C.Liability

Question 5 of 13

$40,000 spent on equity shares in another company.

A.Asset

B.Liability

C.Neither

Question 6 of 13

$50,000 spent by a manufacturer on training staff how to operate machinery.

A.Liability

B.Neither

C.Asset

Question 7 of 13

Which of the following is not one of the four enhancing qualitative characteristics?

A.Materiality

B.Comparability

C.Understandability

D.Timeliness

Question 8 of 13

Which of the following statements regarding the development of new and amended IFRS Accounting Standards is correct?

A.A post-implementation review is conducted if, and only if, there is divergence in practice in how a new IFRS Accounting Standard is applied

B.All amendments to IFRS Accounting Standards are made through the annual improvements process

C.The IASB must issue proposed amendments to a standard in the form of an exposure draft

D.For each project the IASB must issue a discussion paper to gather constituents’ views on a topic

Question 9 of 13

10.

What is the role of the IFRS Interpretations Committee?

A.To promote generally the acceptability of IAS Standards and IFRS Accounting Standards and to enhance their credibility.

B.To work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements

C.To advise the IASB on technical issues in specific projects

D.To consider, on a timely basis, accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance

Question 10 of 13

11.

Which statement is correct?

A.IFRS Accounting Standards should be applied by listed companies in India

B.The US Securities and Exchange Committee has recommended that all US-listed entities adopt IFRS Accounting Standards

C.All companies in the European Union must adopt IFRS Accounting Standards

D.Japanese listed companies may use one of four alternative sets of accounting standards to prepare their financial statements

Question 11 of 13

12.

$30,000 expected expenditure on redecorating business premises in the upcoming financial year.

A.Neither

B.Liability

C.Asset

Question 12 of 13

13.

Which statement best describes the objective of standards produced by the ISSB?

A.To require the correct application of IFRS Accounting Standards to sustainability issues

B.To require the recognition of costs associated with sustainability initiatives as an asset

C.To require the disclosure of sustainability-related risks and opportunities that affect enterprise value

D.To require the disclosure of the impact of corporate sustainability initiatives on the financial statements

Question 13 of 13

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