CBS International Accounting Standards 2

Question 1

Under IAS 36, which is the correct definition of 'recoverable amount' for an asset?

Accepted Answer

The higher of fair value less costs of disposal and value in use

Answer

IAS 36 defines recoverable amount as the higher of an asset's fair value less costs of disposal and its value in use.

Question 2

Which IAS standard governs the accounting treatment for employee benefits such as pensions and post-employment benefits?

Accepted Answer

IAS 19

Answer

IAS 19 Employee Benefits covers short-term benefits, post-employment benefits (including defined benefit and defined contribution plans), and other long-term employee benefits.

Question 3

Under IFRS 9, how are financial assets classified?

Accepted Answer

Amortized cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVTPL)

Answer

IFRS 9 replaced IAS 39 and classifies financial assets into three categories based on business model and cash flow characteristics.

Question 4

IAS 7 requires cash flow statements to present cash flows under which three categories?

Accepted Answer

Operating, investing, and financing activities

Answer

IAS 7 mandates classification of cash flows into operating, investing, and financing activities to help users assess liquidity and financial flexibility.

Question 5

A budget specialist working on international projects needs to understand IAS 21. What does IAS 21 address?

Accepted Answer

Effects of changes in foreign exchange rates

Answer

IAS 21 The Effects of Changes in Foreign Exchange Rates prescribes how to include foreign currency transactions and foreign operations in financial statements.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS International Accounting Standards 2