FCCA FCCA Financial Reporting and Standards

Question 1

Which financial reporting framework is primarily used by publicly listed companies in the United States?

Accepted Answer

US GAAP as issued by FASB

Answer

IFRS as issued by IASB

Answer

UK GAAP (FRS 102)

Answer

IPSAS for public sector entities

Question 2

Under IFRS 15, revenue is recognized when a company satisfies which condition?

Accepted Answer

When a performance obligation is satisfied by transferring control of goods or services

Answer

When cash is received from the customer

Answer

When a contract is signed with the customer

Answer

When the invoice is issued to the customer

Question 3

Which IFRS standard governs the accounting treatment of leases for lessees, requiring most leases to be recognized on the balance sheet?

Accepted Answer

IFRS 16

Answer

IFRS 9

Answer

IFRS 15

Answer

IFRS 17

Question 4

Under US GAAP, the accounting standard equivalent to IFRS 15 for revenue recognition is found in which codification topic?

Accepted Answer

ASC 606

Answer

ASC 842

Answer

ASC 815

Answer

ASC 350

Question 5

Which financial statement shows a company's financial position at a specific point in time?

Accepted Answer

Balance sheet (statement of financial position)

Answer

Income statement

Answer

Statement of cash flows

Answer

Statement of changes in equity

Question 6

Under IFRS, goodwill arising from a business combination is subsequently accounted for using which method?

Accepted Answer

Tested for impairment annually and not amortized

Answer

Amortized over a maximum of 40 years

Answer

Revalued to fair value each reporting period

Answer

Written off immediately against retained earnings