Certificate in International Financial Reporting IFRS Framework and Financial Statements 2

Question 1

Under IAS 1, which basis of accounting must entities use when preparing financial statements?

Accepted Answer

Accrual basis

Answer

Cash basis

Answer

Modified cash basis

Answer

Tax basis

Question 2

What is the definition of 'other comprehensive income' under IAS 1?

Accepted Answer

Items of income and expense not recognised in profit or loss as permitted or required by IFRS

Answer

All revenues and expenses for the period

Answer

Only items related to foreign currency translation

Answer

Dividends paid to shareholders

Question 3

Under IAS 1, when can an entity offset assets and liabilities?

Accepted Answer

Only when permitted or required by an IFRS standard

Answer

Whenever it improves presentation

Answer

When assets and liabilities relate to the same counterparty

Answer

Never

Question 4

According to IAS 1, what is the minimum frequency for presenting a complete set of financial statements?

Accepted Answer

Annually

Answer

Semi-annually

Answer

Quarterly

Answer

Monthly

Question 5

Which element of the financial statements is defined as 'a present economic resource controlled by the entity as a result of past events'?

Accepted Answer

Asset

Answer

Liability

Answer

Equity

Answer

Income

Question 6

Under IAS 1, where must changes in accounting policy be disclosed?

Accepted Answer

In the notes to the financial statements

Answer

Only in the management commentary

Answer

On the face of the statement of profit or loss

Answer

In the auditor's report