MCQ Bank
IAS 34 on interim financial statements requires an entity to use _________ method to allocate costs across interim periods.
- A) rational
- B) incremental
- C) proportional
- D) systematic
According to IAS 34 on interim financial reporting, when preparing condensed interim financial statements, a disclosure is specifically required to facilitate understanding of the ____________ in the entity's financial position.
- A) segment
- B) accounting
- C) changes
- D) performance
The term ____________ under IFRS 16 on leases refers to the right to use an asset over a specified period.
- A) control
- B) right
- C) ownership
- D) benefit
IAS 34 on interim financial statements states that the recognition criteria for provisions in interim periods should be based on ___________.
- A) materiality
- B) likelihood
- C) expectations
- D) occurrence
Under IAS 34 on interim financial reporting, the appropriate treatment when an entity experiences a significant seasonal effect on its operations during the interim period is to _____________ it.
- A) estimate
- B) adjust
- C) disclose
- D) ignor
IFRS 16 on leases requires the recognition of assets under _____________ representing the right to use the leased item.
- A) lease
- B) rentals
- C) use
- D) ownership
IFRS 15 on revenue from contracts with customers, for contracts with multiple performance obligations, requires revenue to be recognized ______________.
- A) incrementally
- B) proportionally
- C) collectively
- D) separately
IFRS 15 on revenue from contracts with customers requires disclosure of revenue disaggregated based on ____________.
- A) geography
- B) timing
- C) source
- D) type
The transaction price under IFRS 15 on revenue from contracts with customers includes variable consideration, if it is ____________.
- A) certain
- B) recognized
- C) estimated
- D) probable
IAS 36 on impairment of assets recommends ___________ rate as the discount rate to use in calculating the value in use.
- A) risk-free
- B) incremental
- C) weighted
- D) pre-tax
As per IAS 21 on The Effects of Changes in Foreign Exchange Rates, the gain or loss due to the difference in exchange rate is routed through______________.
- A) cash flow statement
- B) balance sheet
- C) income statement
- D) owners' equity statement
A contract that can be settled in an entity’s own shares but involves variable amounts of shares is classified as a ____________ as per IAS 32.
- A) derivative
- B) equity
- C) instrument
- D) liability
As per IAS 32 on financial instruments (prsentation), the statement that hedging is a strategy used to __________________________________ is true regarding hedging.
- A) reduce a portfolio's riskiness
- B) increase portfolio volatility
- C) increase a portfolio's risk & return
- D) add securities to a portfolio to increase
IAS 21 on The Effects of Changes in Foreign Exchange Rates advises an entity to _____________ the cumulative exchange differences in equity upon disposal of its foreign operations.
- A) eliminate
- B) defer
- C) reclassify
- D) translate
IAS 32 allows a financial instrument with settlement contingent on uncertain future events beyond the control of both parties to be classified as a _____________
- A) reserve
- B) liability
- C) asset
- D) equity
A currency bearing the all, EXCEPT ____________ is considered as relevant in determining the entity’s functional currency.
- A) entity's revenue infulencer
- B) entity's cost infulencer
- C) global acceptance
- D) finanial reporting
A ____________ is one of the permitted hedging instruments under IFRS 9.
- A) forecast
- B) derivative
- C) reserve
- D) margin
A critical condition for applying hedge accounting under IFRS 9 is that the hedge must be formally documented at ___________.
- A) settlement
- B) maturity
- C) inception
- D) termination
IAS 33 on earnings per share _____________ the inclusion of anti-dilutive potential shares in EPS calculations.
- A) deferres
- B) mandates
- C) conditions
- D) prohibits
IAS 33 on earnings per share uses _____________ as a denominator to compute basic earnings per share.
- A) earning before tax
- B) preference shares
- C) ordinary shares
- D) earning after tax