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Testbank: Applying International Accounting Standards
Testbank: Applying International Accounting Standards
to accompany
Applying International
Accounting Standards
by
Alfredson, Leo, Picker, Pacter & Radford
Prepared by
Victoria Wise
-2-
Question 2
The level of rounding used in the financial statements refers to:
A
B
C
D
Question 3
IAS 1 Presentation of Financial Statements, requires that an entity must disclose the following
information in its financial statements:
A description of the entitys operations
The legal form of the entity
The name of the entitys ultimate parent
The address of the registered office
A
B
C
D
I
No
No
No
No
II
III
Yes No
Yes Yes
Yes No
Yes Yes
I;
II;
III;
IV.
Question 4
The following statement:
IV
Yes
Yes
No
Yes
-3the specific principles, bases, conventions, rules and practices applied by an entity in
preparing and presenting financial statements
provided in IAS 8, defines:
A
B
C
D
Question 5
The qualitative characteristic of Reliability of financial information means that the information
is:
I.
II.
III.
IV.
V.
A
B
C
D
Representationally faithful.
Neutral.
Prudent.
Costless.
Complete in all material respects.
Question 6
An accounting policy:
A
B
C
D
Question 7
The initial application of a policy to revalue assets in accordance with IAS 16 Property, Plant
and Equipment, or with IAS 38 Intangible Assets, must:
A
B
C
-4D
Question 8
When an entity makes a voluntary change to its accounting policies that has an effect on the
current period, it is required to disclose:
I.
II.
III.
IV.
A
B
C
D
The reasons why the change will provide more relevant information.
The amount of the adjustment for each financial statement line item affected.
The nature of the change.
The reasons why the previous policy no longer provides reliable information.
Question 9
If a change in accounting estimates affects balance sheet items, IAS 8 Accounting Policies,
Changes in Accounting Estimates, and Errors, requires that the following disclosures be made:
I.
II.
III.
IV.
A
B
C
D
Question 10
Where a material error occurs in the recording process, an adjustment:
A
B
C
D
-5-
Question 11
Type 1 events that provide evidence of conditions that existed at the balance sheet date are given
the following treatment:
A
B
C
D
Question 12
Type II events that are indicative of conditions that arose after the balance sheet date are given
the following treatment:
A
B
C
D
-6-
ANSWERS
1
10
11
12