Practice Test

Q1) IFRS 1 deals with First time Adoption of International Financial Standards. Show Answer

Q2) IFRS 2 deals with Financial instruments. Show Answer

Q3) IFRS 5 deals with Regulatory Deferral Accounts. Show Answer

Q4) IFRS 8 deals with Business Combinations. Show Answer

Q5) IFRS 13 deals with Fair Value Measurement. Show Answer

Q6) IFRS 11 deals with Financial instruments : Disclosure. Show Answer

Q7) IFRS 10 deals with Insurance Contracts. Show Answer

Q8) IFRS 3 deals with Disclosure of Interests in Other Entities. Show Answer

Q9) IFRS 6 deals with Non-current Assets Held for Sale and Discontinued Operations. Show Answer

Q10) IFRS 4 deals with Consolidated Financial Statements. Show Answer

Q11) IFRS 14 deals with Regulatory Deferral Accounts. Show Answer

Q12) IFRS 7 deals with Joint Arrangement. Show Answer

Q13) IFRS 12 deals with Operating Segment. Show Answer

Q14) IFRS 9 deals with Financial Instruments. Show Answer

Q15) The objective of general purpose financial statements is Show Answer

Q16) The objective of financial statements according to the framework is: Show Answer

Q17) When should an item that meets the definition of an element be recognised, according to the framework? Show Answer

Q18) According to the Framework, qualitative characteristics of financial statements Show Answer

Q19) Which ONE of the following statements best describes the term “Financial position”? Show Answer

Q20) Which ONE of the following terms best describes information that helps users to evaluate past, present or future events? Show Answer

Q21) Which ONE of the following is true of the qualitative characteristic of “understandability” in relation to information in financial statements? Show Answer

Q22) Which of the following is not a qualitative characteristic of financial statements according to the framework? Show Answer

Q23) Materiality depends on Show Answer

Q24) Which of the descriptions below best describes the qualitative characteristic ‘reliability’? Show Answer

Q25) Which of the following is not an element for which there is a concept in Framework ? Show Answer

Q26) One of the criteria that must be satisfied for a liability to be recognised in an entity’s financial statements is that it must be probable that future economic benefits will flow from the entity. Which of the following statements is true ? Show Answer

Q27) Recognition criteria determine when to recognise an item. Measurement is determining the monetary amounts at which to measure an item. Uncertainties about the extent of future cash flows Show Answer

Q28) How many measurement bases does the IFRS specify for the measurement of assets ? Show Answer

Q29) IFRS means Show Answer

Q30) Total number of International Accounting Standards (IAS) Show Answer

Q31) Total number of International Financial Reporting Standards (IFRS) Show Answer

Q32) IFRS 1 was issued in Show Answer

Q33) IFRS 1 applies to Show Answer

Q34) Date of transition is defined in IFRS 1 as Show Answer

Q35) According to IFRS-1, if an entity adopts IFRS in the financial year 31st March,2012 Show Answer

Q36) Which of the following statements are false ?
According to IFRS-1, an entity should, in the opening IFRS statement of financial position,
(i) include all assets and liabilities that the IFRS require
(ii) exclude any assets or liabilities not permitted by the IFRS
(iii) reclassify an item in accordance with IFRS
(iv) measure all assets and liabilities by applying IFRS
Show Answer

Q37) IFRS 1 requires an undertaking to do the following in the opening IFRS balance sheet that it prepares as a starting point for its accounting under IFRSs
(i) include all assets and liabilities that the IFRS require
(ii) exclude any assets or liabilities not permitted by the IFRS
(iii) reclassify any item of asset, liability or equity in accordance with IFRS
(iv) measure all assets and liabilities by applying IFRS
(v) deduct goodwill from equity The options are :
Show Answer

Q38) ABC Ltd. decide to publish IFRS statements for 2013 with comparatives for the years 2008-2012. In them ABC Ltd. makes an explicit and unreserved statement of compliance with IFRSs. No interim financial reports are produced. The 2008-2012 figures come from management accounts that had been seen only by ABC Ltd.’s directors.
ABC Ltd.’s first IFRS financial statements are for:
Show Answer

Q39) The objective of IFRS 1 is to ensure that an undertaking’s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:
(i) is transparent for users and comparable over all periods presented
(ii) provides a suitable starting point for accounting under IFRSs
(iii) can be generated at a cost that does not exceed the benefits to users
(iv) can be generated more quickly than under previous GAAP The options are:
Show Answer

Q40) ABC Ltd. decided to publish IFRS statements for 2013 with comparatives for the years 2008-2012. ABC Ltd.’s date of transition to IFRSs is 1 January 2008. ABC Ltd. will require reconciliations of its equity reported under previous GAAP to its equity under IFRSs for: Show Answer

Q41) ABC Ltd. decides to publish IFRS statements for 2013 with comparatives for the years 2008-2012. ABC Ltd.’s opening IFRS balance sheet is the balance sheet of 1 January: Show Answer

Q42) If ABC Ltd. presented its most recent previous financial statements under Indian GAAP requirements that are not consistent with IFRSs in all respects; would those financial statements count as the first IFRS financial statements? Show Answer

Q43) If ABC Ltd. presented its most recent previous financial statements in conformity with IFRSs in all respects, except that the financial statements did not contain an explicit and unreserved statement that they complied with IFRSs; would those financial statements count as the first IFRS financial statements? Show Answer

Q44) If ABC Ltd. presented its most recent previous financial statements containing an explicit statement of compliance with some, but not all, IFRSs would those financial statements count as the first IFRS financial statements? Show Answer

Q45) If ABC Ltd. presented its most recent previous financial statements under Indian GAAP requirements inconsistent with IFRSs, using some individual IFRSs to account for items for which Indian GAAP requirements did not exist; would those financial statements count as the first IFRS financial statements? Show Answer

Q46) If ABC Ltd. presented its most recent previous financial statements under Indian GAAP requirements, with a reconciliation of some amounts to the amounts determined under IFRSs; would those financial statements count as the first IFRS financial statements? Show Answer

Q47) ABC Ltd. decide to publish IFRS statements for 2013 with comparatives for the years 2008-2012. In them ABC Ltd. make an explicit and unreserved statement of compliance with IFRSs. ABC Ltd.’s accounting policies for all years should be those applicable to Show Answer

Q48) In respect of the exemptions given in IFRS 1 from its requirements: Show Answer

Q49) ABC Ltd.’s date of transition to IFRSs is 1 January 2013 and new information on 15 July 2013 requires the revision of a bad debt provision estimate made under previous Indian GAAP at 31 December 2012. Show Answer

Q50) ABC Ltd. decide to publish IFRS statements for 2013 with comparatives for the years 2008-2012. In them ABC Ltd. make an explicit and unreserved statement of compliance with IFRSs. ABC Ltd.’s first IFRS reporting period is the year ending: Show Answer

Q51) XYZ Ltd is a first-time adopter under IFRS 1. The most recent financial statements it presented under its previous GAAP were as of 31 December 2012. It has adopted IFRS for the first time and intends to present the first IFRS financial statements as of 31 December 2013. It plans to present two-year comparative information for the years 2012 and 2011. The opening IFRS balance sheet should be prepared as of Show Answer

Q52) Which one of the following is not a required adjustment in preparing an opening IFRS balance sheet? Show Answer

Q53) On 1July 2012, ABC Ltd. decided to adopt IFRS. Its first IFRS reporting period is as of and for the year ended 31 December 2012. ABC Ltd. will present one year of comparative information. What is ABC Ltd.’s date of transition to IFRS (IFRS 1)? Show Answer

Q54) In general terms, ‘convergence’ means Show Answer

Q55) Financial statements can be described as complying with IFRS when Show Answer

Q56) Which of the following statement is wrong
(i) financial statements comply with IFRS only when IFRS are adopted word by word
(ii) adding disclosure requirements does not create non-compliance with IFRS
(iii) removing optional treatments creates non-compliance with IFRS
Show Answer

Q57) Convergence of Indian Accounting Standards with IFRS means Show Answer

Q58) Companies having a net worth of Rs.500 crore and whose equity shares are listed on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q59) Companies having a net worth of Rs.500 crore and whose debt securities are listed on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q60) Companies having a net worth of Rs.500 crore and whose equity shares are listed on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q61) Companies whose debt securities are listed on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q62) Companies having a net worth of Rs.500 crore and who are in the process of listing their equity shares on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q63) Companies having a net worth of Rs.500 crore and who are in the process of listing their debt securities on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q64) Companies having a net worth of Rs.500 crore and who are in the process of listing their equity shares on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q65) Companies having a net worth of Rs.500 crore and who are in the process of listing their debt securities on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q66) Unlisted Companies having a net worth of ` 500 crore must implement Ind AS for accounting period beginning on Show Answer

Q67) ABC Ltd. is required to implement Ind AS for accounting period beginning 1st April, 2016. Its holding company XYZ Ltd. must implement Ind AS for accounting period beginning on Show Answer

Q68) ABC Ltd. is required to implement Ind AS for accounting period beginning 1st April, 2016. Its subsidiary company LMN Ltd. must implement Ind AS for accounting period beginning on Show Answer

Q69) ABC Ltd. is required to implement Ind AS for accounting period beginning 1st April, 2016. It is required to give Comparative information for accounting period ending Show Answer

Q70) Companies having a net worth of Rs.250 crore and whose equity shares are listed on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q71) Companies having a net worth of Rs.250 crore and whose debt securities are listed on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q72) Companies having a net worth of Rs.250 crore and whose equity shares are listed on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q73) Companies having a net worth of Rs.250 crore and whose debt securities are listed on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q74) Companies having a net worth of Rs.250 crore and who are in the process of listing their equity shares on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q75) Companies having a net worth of Rs.250 crore and who are in the process of listing their debt securities on any stock exchange in India must implement Ind AS for accounting period beginning on or after Show Answer

Q76) Companies having a net worth of Rs.250 crore and who are in the process of listing their equity shares on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q77) Companies having a net worth of Rs.250 crore and who are in the process of listing their debt securities on any stock exchange outside India must implement Ind AS for accounting period beginning on or after Show Answer

Q78) Unlisted Companies having a net worth of ` 250 crore must implement Ind AS for accounting period beginning on Show Answer

Q79) ABC Ltd. is required to implement Ind AS for accounting period beginning 1st April, 2017. Its holding company XYZ Ltd. must implement Ind AS for accounting period beginning on Show Answer

Q80) ABC Ltd. is required to implement Ind AS for accounting period beginning 1st April, 2017. Its subsidiary company LMN Ltd. must implement Ind AS for accounting period beginning on Show Answer

Q81) ABC Ltd. is required to implement Ind AS for accounting period beginning 1st April, 2017. It is required to give Comparative information for accounting period ending Show Answer

Q82) Any company may voluntarily adopt Ind AS for accounting periods beginning with Show Answer

Q83) ABC Ltd. decides to voluntarily to implement Ind AS for accounting period beginning 1st April, 2015. It is required to give Comparative information for accounting period ending Show Answer