ACA Financial Reporting

Question 1

Which body issues International Financial Reporting Standards (IFRS)?

Accepted Answer

International Accounting Standards Board (IASB)

Answer

Financial Reporting Council (FRC)

Answer

Financial Conduct Authority (FCA)

Answer

International Federation of Accountants (IFAC)

Question 2

Under IAS 1, the statement of financial position (balance sheet) must present current and non-current assets and liabilities separately unless:

Accepted Answer

A liquidity-based presentation provides more reliable information

Answer

The entity is a small company

Answer

The entity uses UK GAAP

Answer

The entity is a charity

Question 3

Under IFRS 5, a non-current asset classified as held for sale must be measured at:

Accepted Answer

The lower of carrying amount and fair value less costs to sell

Answer

Historical cost

Answer

Fair value through profit or loss

Answer

Replacement cost

Question 4

Consolidated financial statements are required when a parent entity has:

Accepted Answer

Control over one or more subsidiaries

Answer

Joint control over another entity

Answer

Significant influence over another entity

Answer

A minority stake in another company

Question 5

Under IFRS, how is a gain on bargain purchase (negative goodwill) treated?

Accepted Answer

Recognised immediately in profit or loss

Answer

Deferred and amortised over 10 years

Answer

Recognised in other comprehensive income

Answer

Deducted from non-current assets

Question 6

Under IAS 38, which of the following is an internally generated intangible that CAN be recognised?

Accepted Answer

Development costs meeting the six criteria

Answer

Internally generated goodwill

Answer

Brand names developed internally

Answer

Customer lists developed internally