INTERIM FINANCIAL REPORTING

MULTIPLE CHOICE – THEORY

1. Which of the following entities are required under PAS 34 to prepare and present interim financial
reports?
a. listed entities c. a and b
b. financial institutions d. none of these
2. PAS 34 shall be applied by
a. entities which are required by the government or other entities to provide interim financial reports
b. those who choose to provide interim financial reports
c. a and b
d. all reporting entities who are adopting the “full” PFRS
3. PAS 34 applies to a
a. condensed set of financial statements
b. complete set of financial statements
c. a or b
d. none of these
4. Which of the following expenses is recognized immediately in the interim period and not allocated to the
other interim periods?
a. Annual depreciation of equipment that benefits the entire annual period.
b. Real property tax
c. 13th month pay of employees
d. Impairment of assets
5. Which of the following income is recognized immediately in the interim period and not allocated to the
other interim periods?
a. gain on changes in fair values of investments
b. gain on disposal of property
c. receipt of dividend income from investments
d. all of these
6. In the interest of timeliness and cost considerations, less information may be provided at interim dates.
This is most likely an application of the concept of
a. materiality c. relevance over reliability
b. consistency d. faithful representation
7. When an entity that uses a calendar year period presents a statement of financial position the current
and comparative financial statements are dated
Current period Comparative information
a. As of March 31, 20x1 As of March 31, 20x0
b. As of March 31, 20x1 As of December 31, 20x0
c. For the period ended Mar. 31, 20x1 For the period ended Mar. 31, 20x0
d. For the period ended Mar. 31, 20x1 For the period ended Mar. 31, 20x0
8. PAS 34 states a presumption that anyone reading interim financial reports will
a. Understand all International Financial Reporting Standards.
b. Have access to the records of the entity.
c. Have access to the most recent annual report.
d. Not make decisions based on the report.
9. Income tax expense in the interim financial statements prepared in accordance with PAS 34 is measured
using
a. the current tax rate applicable to the interim period.
b. the substantially enacted future tax rate as at the end of the interim period.
c. the best estimate of the weighted average annual income tax rate expected for the full financial
year.
d. the best estimate of the weighted average annual income tax rate expected for the interim period.

10. If an entity changes an accounting estimate during an interim period, the change shall be applied.
a. as at the beginning of that interim period where the change occurred.
b. as at the beginning of the current year.
c. as at the end of the interim period where the change occurred.
d. as at the end of the current year