IFRS Cheat Sheet 2026

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

1. Why is stakeholder management important in projects? → Because stakeholder support and engagement are critical to project success
2. What are the three main financial statements? → Income statement, balance sheet, and cash flow statement
3. Under IFRS 10, how should intragroup balances, transactions, income, and expenses be treated when preparing consolidated financial statements? → Eliminated in full
4. In the context of IFRS 9 expected credit loss (ECL) calculations, Probability of Default (PD) should reflect: → Forward-looking information including macroeconomic forecasts
5. SIC-10 addresses government assistance. Which of the following does SIC-10 specifically state is NOT government assistance for the purpose of IAS 20? → Infrastructure provided through improvement of the general transport network
6. Under the IFRS Foundation's governance structure, which body provides oversight of the IASB? → The IFRS Foundation Trustees
7. Why is root cause analysis important in quality improvement? → It identifies the underlying cause of problems rather than just symptoms
8. Under IAS 37, a provision should be recognized when: → A present obligation exists, outflow is probable, and a reliable estimate can be made
9. A US private company voluntarily adopts IFRS. Which regulatory body's rules would primarily govern this decision? → The SEC
10. What is scope creep? → Uncontrolled expansion of project scope without corresponding adjustments
11. What is a key benefit of adopting IFRS? → Enhancing global comparability of financial statements
12. When communicating pension obligations to employees and investors, which IFRS standard governs defined benefit plan disclosures? → IAS 19
13. What is the triple constraint in project management? → Scope, time, and cost — changes to one affect the others
14. SIC-32 addresses the recognition of website development costs under IAS 38. During which phase are costs most likely to qualify for capitalization? → Application and infrastructure development phase
15. What is the role of the IFRS Interpretations Committee? → To provide guidance on applying existing IFRS where divergent interpretations have arisen
16. A company operates a loyalty points program. Under IFRS 15, loyalty points awarded at the time of sale are accounted for as: → A separate performance obligation allocated part of the transaction price
17. Under IAS 37, which criterion is NOT required for recognition of a provision? → The amount can be determined with certainty
18. A strategic plan involves significant restructuring. Under IAS 37, a provision for restructuring costs can only be recognized when: → A detailed formal plan exists and a valid expectation has been raised in those affected
19. Under IFRS, when assessing impairment of a cash-generating unit as part of strategic review, goodwill allocated to the CGU is tested: → Annually, regardless of impairment indicators
20. When interpreting IFRS diluted earnings per share (EPS) disclosures under IAS 33, which instrument would NOT be included in the diluted share count? → Convertible bonds where conversion would be anti-dilutive
21. A company strategically decides to issue convertible bonds. Under IAS 32, the proceeds must be split between: → A liability component and an equity component
22. Which of the following best describes the Altman Z-Score? → A multi-variable financial model used to predict bankruptcy probability
23. Why do some countries adopt IFRS gradually? → To allow time for companies to transition
24. What is the significance of an entity's 'first IFRS reporting period' as defined in IFRS 1? → The annual period covered by the entity's first IFRS financial statements
25. Which businesses qualify to use IFRS for SMEs? → Privately held companies without public accountability
26. IFRIC 17 addresses distributions of non-cash assets to owners. At what amount should the dividend payable liability be measured on declaration? → At the fair value of the non-cash assets to be distributed
27. Under IFRS for SMEs, when an SME elects the revaluation model for property, plant and equipment, how often must revaluations occur? → With sufficient regularity so carrying amount does not differ materially from fair value
28. Horizontal analysis of financial statements involves: → Comparing financial data across multiple periods to identify trends
29. Under IAS 2, which cost formula is prohibited for measuring inventory under IFRS? → LIFO (Last-In, First-Out)
30. Under IFRS for SMEs Section 9, which entities are required to present consolidated financial statements? → A parent entity unless it meets criteria for exemption from consolidation