CBS International Accounting Standards 3

Question 1

Under IFRS 16, how must a lessee account for most leases on its balance sheet?

Accepted Answer

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

Answer

IFRS 16 eliminated the distinction between operating and finance leases for lessees, requiring recognition of a right-of-use asset and lease liability for nearly all leases.

Question 2

IAS 38 deals with intangible assets. Under IAS 38, which of the following can generally be capitalized?

Accepted Answer

Development phase expenditures meeting specific criteria

Answer

IAS 38 allows capitalization of development costs when technical feasibility, intention to complete, ability to use/sell, and other criteria are met, but research costs are always expensed.

Question 3

Which IFRS standard establishes principles for recognizing revenue from contracts with customers?

Accepted Answer

IFRS 15

Answer

IFRS 15 Revenue from Contracts with Customers replaced IAS 18 and IAS 11, introducing a five-step model for revenue recognition.

Question 4

A company has a defined benefit pension plan. Under IAS 19, which method must be used to measure the defined benefit obligation?

Accepted Answer

Projected unit credit method

Answer

IAS 19 requires use of the projected unit credit method to measure the defined benefit obligation, attributing benefits to periods of employee service.

Question 5

Under IAS 12, a deferred tax liability arises when:

Accepted Answer

An asset's carrying amount exceeds its tax base

Answer

A deferred tax liability arises from a taxable temporary difference when carrying amount exceeds tax base, indicating future taxable income when the asset is recovered.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS International Accounting Standards 3