ACA Accounting (IFRS/UK GAAP)

Question 1

Under IAS 16, which cost model allows an asset to be carried at fair value less accumulated depreciation?

Accepted Answer

Revaluation model

Answer

Cost model

Answer

Fair value model

Answer

Historical cost model

Question 2

Under UK GAAP (FRS 102), goodwill arising on acquisition must be:

Accepted Answer

Capitalised and amortised over its useful life

Answer

Written off immediately to reserves

Answer

Capitalised and tested for impairment only

Answer

Expensed to profit or loss immediately

Question 3

Which IFRS standard governs the recognition and measurement of financial instruments for most entities?

Accepted Answer

IFRS 9

Answer

IAS 39

Answer

IFRS 7

Answer

IAS 32

Question 4

Under IAS 2, inventories must be measured at:

Accepted Answer

The lower of cost and net realisable value

Answer

The higher of cost and net realisable value

Answer

Fair value less costs to sell

Answer

Replacement cost

Question 5

A finance lease under IFRS 16 requires the lessee to recognise:

Accepted Answer

Both a right-of-use asset and a lease liability

Answer

Only a lease liability on the balance sheet

Answer

Only a right-of-use asset on the balance sheet

Answer

An operating expense only

Question 6

Under IAS 36, an impairment loss is recognised when an asset's carrying amount exceeds its:

Accepted Answer

Recoverable amount

Answer

Net realisable value

Answer

Replacement cost

Answer

Historical cost