Certificate in International Financial Reporting Leases, Provisions, and Employee Benefits 3

Question 1

Under IAS 19, short-term employee benefits (e.g., wages, paid annual leave) are measured:

Accepted Answer

At the undiscounted amount expected to be paid

Answer

At the present value of expected future payments

Answer

At the actuarially determined amount

Answer

At the minimum statutory amount

Question 2

Under IAS 19, which component of defined benefit cost is recognised in profit or loss?

Accepted Answer

Current service cost and net interest cost

Answer

Remeasurements only

Answer

Past service cost only

Answer

Actuarial gains and losses only

Question 3

Under IFRS 2, share-based payment transactions where the entity receives goods or services are measured at:

Accepted Answer

The fair value of the goods or services received, or the fair value of the equity instruments if indirectly measured

Answer

The par value of shares issued

Answer

The market price of shares at grant date

Answer

Historical cost of the award

Question 4

Under IFRS 2, for equity-settled share-based payment transactions with employees, the expense is recognised:

Accepted Answer

Over the vesting period based on fair value at grant date

Answer

When the awards vest

Answer

Based on fair value at each reporting date

Answer

When the shares are issued

Question 5

Under IAS 37, when discounting a provision, the discount rate used should be:

Accepted Answer

A pre-tax rate reflecting current market assessments of the time value of money and specific risks

Answer

The entity's average cost of debt

Answer

The risk-free rate only

Answer

The weighted average cost of capital

Question 6

Under IAS 19, termination benefits are recognised as a liability and expense when:

Accepted Answer

The entity can no longer withdraw the offer of those benefits

Answer

Employees formally accept the offer

Answer

The termination date is reached

Answer

Board approval is obtained