Certificate in International Financial Reporting Cheat Sheet 2026

The 30 highest-yield Certificate in International Financial Reporting facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under IAS 7, the indirect method of presenting operating cash flows begins with: → Profit before tax, adjusted for non-cash items and working capital changes
2. Under IAS 7, which of the following is NOT a cash equivalent? → An equity investment held for long-term capital appreciation
3. Under IFRS 9, a financial liability is derecognised when: → The obligation is discharged, cancelled, or expires
4. Under IFRS 16, how does a lessee recognise most leases on its balance sheet at commencement? → As a right-of-use asset and a corresponding lease liability
5. Under IAS 29, the gain or loss arising on an entity's net monetary position in a hyperinflationary economy is recognized: → In profit or loss for the period
6. Under IAS 2, borrowing costs are generally: → Excluded from inventory cost and expensed
7. Under IAS 29, which quantitative characteristic most strongly indicates that an economy is hyperinflationary? → The cumulative inflation rate over three years approaches or exceeds 100%
8. Under IAS 8, how should an entity account for a change in accounting estimate? → Prospectively
9. Under IAS 36, how should an impairment loss for a cash-generating unit (CGU) be allocated? → First to goodwill, then pro-rata to other assets
10. Under IAS 38, which of the following development costs can be capitalised? → Costs that meet all six criteria including technical feasibility and intention to complete
11. Under IAS 12, which of the following temporary differences does NOT give rise to a deferred tax liability? → Goodwill arising in a business combination
12. Under IFRS 9, when an entity reclassifies financial assets, where is the effect recognised? → Prospectively from the reclassification date with no restatement of prior gains or losses
13. Under IFRS 15, a variable consideration (e.g., performance bonus) should be included in the transaction price only to the extent that it is: → Highly probable a significant revenue reversal will not occur
14. Under IFRS 9, what is the 'SPPI' test used to determine? → Whether contractual cash flows are solely payments of principal and interest
15. Under IAS 28, significant influence is presumed when an investor holds: → 20% to 50% of voting power
16. Under IAS 29, how are non-monetary assets measured at historical cost restated in the financial statements of an entity in a hyperinflationary economy? → Restated by applying a general price index from the acquisition date to the reporting date
17. Under IFRS 10, non-controlling interests (NCI) in a subsidiary are presented: → Within equity, separately from the parent's equity
18. An entity's economy ceases to be hyperinflationary. Under IAS 29, how are the restated figures from the prior period treated in subsequent financial statements? → Used as the basis for the historical cost amounts in all subsequent financial statements
19. Under IAS 21, how is 'functional currency' defined? → The currency of the primary economic environment in which an entity operates
20. Under IAS 21, what exchange rate is used to translate a non-monetary item carried at historical cost? → The historical rate at the date of the transaction
21. Under IAS 7, how are dividends paid classified in the cash flow statement? → Either as financing or operating activities (entity's choice, consistently applied)
22. Under IAS 16, what is the depreciable amount of an asset? → Cost or revalued amount less residual value
23. Under IAS 8, how should material prior period errors be corrected? → By restating the comparative amounts for prior periods presented
24. Under IFRS 11, a joint arrangement is classified as a joint operation when: → Parties have rights to the assets and obligations for the liabilities of the arrangement
25. Under IAS 19, a defined benefit obligation is measured using: → The projected unit credit method
26. Under IAS 38, internally generated goodwill is: → Not recognised as an asset
27. Under IFRS 3, a bargain purchase (negative goodwill) arises when: → The fair value of net identifiable assets exceeds the consideration transferred plus NCI
28. Under IAS 38, research costs are: → Expensed as incurred
29. Under IAS 1, when can an entity offset assets and liabilities? → Only when permitted or required by an IFRS standard
30. Under IAS 27, which method is used to account for investments in subsidiaries in a parent's separate financial statements? → Either cost method or IFRS 9 fair value method