CertIFR-M1

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

A.Liability

B.Asset

C.Neither

Question 1 of 13

What is the role of the IFRS Interpretations Committee?

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

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

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

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

Question 2 of 13

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

A.Liability

B.Neither

C.Asset

Question 3 of 13

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

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

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

Question 4 of 13

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

A.Comparability

B.Materiality

C.Understandability

D.Timeliness

Question 5 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.Neither

B.Liability

C.Asset

Question 6 of 13

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

A.Liability

B.Neither

C.Asset

Question 7 of 13

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

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

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

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

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

Question 8 of 13

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

A.Liability

B.Asset

C.Neither

Question 9 of 13

10.

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

A.Neither

B.Liability

C.Asset

Question 10 of 13

11.

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 allowance is made for receivables (doubtful debts)

C.The costs of a patent are capitalised

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

Question 11 of 13

12.

Which statement is correct?

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

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

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

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

Question 12 of 13

13.

The Monitoring Board is responsible for:

A.Deciding on a work plan for the IASB

B.All Answers

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

D.Approving IFRS Accounting Standards before publication

Question 13 of 13

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