ACCA Strategic Business Reporting 3

Question 1

Under IFRS 16, how does a lessee account for a lease on commencement date?

Accepted Answer

Recognize a right-of-use asset and a corresponding lease liability

Answer

Expense the full lease payment in profit or loss

Answer

Recognize only the lease liability on the balance sheet

Answer

Disclose the lease in notes only

Question 2

Non-controlling interests (NCI) in a consolidated statement of financial position are presented:

Accepted Answer

Within equity, separately from the parent shareholders' equity

Answer

As a liability

Answer

As a deduction from goodwill

Answer

As a deferred credit

Question 3

When calculating goodwill using the full goodwill method, which of the following is included?

Accepted Answer

The fair value of the NCI at acquisition date is included in the goodwill calculation

Answer

Only the parent's share of goodwill

Answer

NCI is measured at its share of net identifiable assets only

Answer

Goodwill equals purchase price minus book value of net assets

Question 4

Under IFRS 2 Share-based Payment, how are equity-settled share-based transactions measured?

Accepted Answer

At the fair value of the equity instruments granted, measured at the grant date

Answer

At the fair value of the goods or services received

Answer

At the intrinsic value of the options at exercise date

Answer

At the market price of shares at each reporting date

Question 5

In a consolidated income statement, the profit attributable to non-controlling interests is:

Accepted Answer

Shown as an allocation of group profit, below the profit for the period line

Answer

Deducted before arriving at group profit

Answer

Added back as a reconciling item

Answer

Recognized as a financing cost

Question 6

Which standard requires disclosure of related party transactions and relationships in financial statements?

Accepted Answer

IAS 24

Answer

IAS 10

Answer

IFRS 13

Answer

IAS 37