1.

Under IAS 37, how are contigent liabilities treated in the

financial statements?
a. IAS 37 does not address contigent liabilities
b. They are recorded as current liabilities if the amount is
reasonablu measured
c. They are disclosed in the notes to the financial statements
when there is more than a remote possibility of an outflows
of resources
d. They are not disclosed
2. How does U.S GAAP require prior service costs related to
retirees to be recognized?
a. Amortize over the average remaining working lives of
active employees
b. Recognize immediately
c. Dont recognize at all
d. Amortize over remaining expected life of the retirees
3. Under IAS 19, employee benefits, which of the following
benefits are covered?
a. Compensated absences and bonuses
b. Post-employement benefits
c. Deferred compensation and disability benefits
d. All of the above
4. Which of the following is a difference between IAS 37 and U.S
GAAP with respect to restructuring provisions?
a. U.S GAAP does not allow recognition of a restructuring
provision until a liability has been incurred.
b. There is no difference between IAS 37 and U.S GAAP with
respect to restructuring provisions
c. IAS 37 does not allow recognition of a restructuring
provision untill a liability has been incurred
d. A restructuring provision and related loss is more likely to
occur later under IAS 37 than under U.S GAAP
5. Under U.S GAAP, with respect to equity-settled share-based
payments, if the fair value of the equity instrument is used,
the value is determined
a. At the earlier of the date a commitment for performance is
reached or the date the services are actually completed
b. At the date the services are actually completed
c. At the date a commitment for performance is reached
d. None of the above
6. Under IAS 36, Income Taxes, which of the following issues are
covered?
a. Temporary differences
b. Operating Loss Carry-forwards

c. Tax credit carry-forwards

d. All of the above
7. What kinds of temporary differences related to income taxes
can arise under IFRS that dont occur under U.S GAAP?
a. Book and tax differences related to the revaluation of
property, plant, and equipment for book purposes and cost
method for tax purposes.
b. Book and tax differences related to the calculation of
impairments for book purposes with no like adjustment for
tax purposes
c. Both (A) and (B)
d. Use of the LIFO inventory method for book purposes and
the FIFO inventory method for tax purposes
8. Under IAS 18, which of the following is an employee of
retention of significant risks and rewards by the seller?
a. The buyer has no right to rescind the purchase
b. The seller is under no obligation for satisfactory
performance not covered by normal warranties
c. Goods are sold subject to installation, but installation is not
a significant part of the contract and has not yet been
completed
d. Receipt of revenue by the seller is contigent on the buyer
generating revenue through its sale of the goods.
9. IAS 32 defines a financial instruments as
a. the currency of the foreign country in which the enterprise
does business
b. a certified check
c. any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of
another entity
d. a recognized stock exchange
10.
Under IAS 39, financial instruments: recognition and
measurement, which of the following is not a category into
which a financial asset must be classified?
a. property, plant and equipment
b. held-to-maturity investments
c. loans and receivables
d. available-for-sale financial assets