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Quizzes-IAS-37-kế toán quốc tế1

International Accounting (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)

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Câu H ỏi 1 Đúng Đạt điểm 1,00 trên 1,00

A provision should be recorded when:

Select one:
a. 1-3 are all present.

b. It is probable that payment will be required.

c. An estimate can be made of the obligation.

d. An undertaking has a present obligation legal, or constructive.

An ex-director of X Co has commenced an action against the company claiming substantial damages for wrongful dismissal.
The company’s solicitors have advised that the ex-director is unlikely to succeed with his claim, although the change of X
paying any monies to the ex-director is not remote. The solicitors’ estimates of the company’s potential liabiltities are: Legal
costs (to be incurred whether the claim is successful or not) $50,000; Settlement of claim if successful $500,000. According
to IAS 37 Provisions, contingent liabilities and contigent assets, how should this clasim be treated in the nancial
statements ?

Select one:

a. Provision for $500,000 and a contingent liabilities of $50,000

b. Disclose a contingent liability of $550,000

c. Disclose a provision of $50,000 and a contingent liability of $500,000

d. A provision of $550,000

Câu H ỏi 3 Đúng Đạt điểm 1,00 trên 1,00

According to IAS 37, a constructive obligation arises:

Select one:
a. When an entity has indicated to other parties that it will accept certain responsibilities and as a result, an

entity has created a valid expectation of those other parties that it will discharge those responsibilities.

b. As a result of a contract, some legislation or other operation of law.

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c. When an entity has created valid expectations in the a ected parties based on the previous experience, best practices or
legislation.

d. As a result of a construction contract in line with IAS 11 Construction contracts.

Câu H ỏi 4 Đúng Đạt điểm 1,00 trên 1,00

Discount rates should be:

Select one:

a. Changed annually.
b. Pre-tax.

c. Pre-tax & post- tax

d. Post-tax.

Manufacturer of chemical products applies strong environmental policy worldwide and undertakes to clean up the
contaminated water and land. This company causes an environmental damage in the country A, in which there is no
legislation that would oblige the company to remove contamination.
Should the company recognize provision for cleanup costs in line with IAS 37?

Select one:

a. No, because there is no legislation in the country A to enforce the removal of contamination.

b. No, because there is no obligation arising from past event.

c. Yes, because there is a legal obligation arising from past event.

d. Yes, because there is a constructive obligation arising from past event (contamination).

Câu H ỏi 6 Đúng Đạt điểm 1,00 trên 1,00

When shall the provision be recognized in line with IAS 37?

Select one:

a. When it is probable that the out ow of resources embodying economic bene ts will be required to settle the
obligation

b. When an entity has a present obligation as a result of past event

c. When a reliable estimate can be made of the amount of the obligation

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d. When all other conditions are met

Câu H ỏi 7 Đúng Đạt điểm 1,00 trên 1,00

A car manufacturer provides 2-year warranty related to all repairs of its products. Should car manufacturer recognize the
provision for warranty repairs in line with IAS 37?

Select one:
a. Yes, because a past event is a sale of a product with warranty and based on past statistics a car

manufacturer can assess the probability of having to pay for the repairs and estimate the costs.

b. No, because at the time of sale, there is no present obligation to pay for the repairs. Car manufacturer will need
to pay only when there is some claim from customers in the future.

c. Yes, because there is a constructive obligation as a result of past event (production of a defective car).

d. No, because it is impossible to measure the amount that will be paid for the repairs.

Which of the following items does the statement below describe? “A possible obligation that arises from past events and
whose existence will be con rmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the entity’s control”

Select one:

a. A contingent asset
b. A contingent liability

c. A current liability

d. A provision

Câu H ỏi 9 Đúng Đạt điểm 1,00 trên 1,00

Mobile Co sells goods with a one year warranty under which customers are covered for any defect that becomes apparent
withing a year of purchases. In calendar year 20X4, Mobile Co sold 100,000 units. The company expects warranty claims
for 5% of units sold. Half of these claims will be for a major defect, with an average claim value of $50. The other half of
these claim will be for a minor defect, with an average claim value of $10. What amout should Mobile Co include as a
provision in the statement of nancial position for the year ended 31 Dec 20X4?

Select one:

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a. $150,000

b. $125,000

c. $25,000

d. $300,000

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10

The following items have to be considered in nalizing the nancial statements of Q, a limited liability company: 1. The
company gives warranties on its products. The company’s statistics show that about 5% of sales give rise to a warranty
claim; 2. The company has guaranteed the overdraft of another company.
The likelihood of a liability arising under the guarantee is assessed as possible. According to IAS 37 Provisions, contingent
liabilities and contigent assets, what is the correct action to be taken in the nancial statements for these items?

Select one:

a. 1: disclose by note only; 2: no action

b. 1,2: create a provision

c. 1: disclose by note only; 2: create a provision

d. 1: create a provision; 2: disclose by note only

Câu H ỏi 11 Đúng Đạt điểm 1,00 trên 1,00

IAS 37 provisions include:

Select one:

a. Impairment of assets.

b. Doubtful debts.
c. Environmental provisions.

d. Depreciation.

Câu H ỏi 12 Đúng Đạt điểm 1,00 trên 1,00

According to IAS 37, a provision is:

Select one:
a. A liability of uncertain timing or amount

b. A possible obligation arising from past events.

c. A liability of uncertain timing, amount and settlement.

d. A present obligation arising from past events.

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13

X Co sells goods with a one year warranty and had a provision for warranty claims of $64,000 at 31 Dec
20X0. During the year ended 31 Dec 20X1, $25,000 in claims were paid to customers. On 31 Dec 20X1, X Co estimated that
the following claims will be paid in the following year (Scenario, probability, anticipated cost): Worst case: 5%, $150,000;
Best case: 20%, $25,000; Most likely: 75%, $60,000. What amount should X Co record in the statement of pro t or loss for
the year ended 31 Dec 20X1 in respect of the provision?

Select one:
a. $18,500

b. $57,500

c. $39,000

d. $6,500

Câu H ỏi 14 Đúng Đạt điểm 1,00 trên 1,00

Which of the following is a restructuring cost under IAS 37?:

Select one:

a. Relocation of sta
b. Relocation of business activities from one region to another

c. Marketing

d. Investment in new distribution networks

15

Which of the following statements about contingent assets and contingent liabilities are correct? 1. A contingent asset
should be disclosed by note if an in ow of economic bene ts is probable; 2. A contingent liability should be disclosed by
note if it is probable that a transfer of economic bene ts to settle it will be required, with no provision being made; 3. No
disclosure is required for a contingent liability if it is not probable that a transfer of economic bene ts to settle it will be
required; 4. No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or
receipt is remote.

Select one:

a. 1, 2 and 4

b. 2 and 3 only

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c. 1 and 4 only

d. 2, 3 and 4

Câu H ỏi 16 Đúng Đạt điểm 1,00 trên 1,00

If a provision relates to a large population of items, the amount of the provision should be calculated as:

Select one:
a. The expected value of the expenditure that will be required to settle the obligation

b. The minimum expenditure that could possibly be required to settle the obligation

c. The present value of the maximum expenditure that could possibly be required to settle the obligation

d. The maximum expenditure that could possibly be required to settle the obligation

Câu H ỏi 17 Đúng Đạt điểm 1,00 trên 1,00

If the possibility of a penalty is remote:

Select one:

a. Disclosure a contingent liability.

b. Record a contingent liability.

c. Do nothing.

d. Record a provision

18

D Co is a business that sells second hand cars. If a car develops a fault within 30 days of the sale, D Co will repair it free of
charge. At 30 Apr 20X4 D Co had made a provision for repairs of $2,500. At 30 Apr 20X5, it calculated that the provision
should be $2,000. What entry should be made for the provision in D Co’s statement of pro t or loss for the year to 30 Apr
20X5?

Select one:

a. A credit of $2,000

b. A charge of $500

c. A charge of $2,000
d. A credit of $500

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Câu H ỏi 19 Đúng Đạt điểm 1,00 trên 1,00

M’s paint shop has su ered some bad publicity as a result of a customer claiming to be su ering from skin rashes as a result
of using a new brand of paint sold by M’shop. The customer launched a court action against M in Nov 20X3, claiming
damages of $5,000. M’s lawyer has advised him tha the most probable outcome is that he will have to pay the customer
$3,000. What amount should M include as a provision in his accounts for the year ended 31 Dec 20X3?

Select one:

a. $8,000

b. $5,000

c. $nil
d. $3,000

Câu H ỏi 20 Đúng Đạt điểm 1,00 trên 1,00

Contingent liabilities are:

Select one:

a. Always recognised in the statement of nancial position

b. Disclosed in the notes unless the possibility of an out ow of economic bene ts is remote

c. Always disclosed in the notes to the nancial statements

d. Recognised in the statement of nancial position unless the possibility of an out ow of economic bene ts is
remote

21

According to IAS 37, an onerous contract is:

Select one:
a. A contract in which the unavoidable costs of meeting the obligations under the contract exceed the

economic bene ts expected to be received under it

b. A contract that was entered into under duress, or is concluded between related parties under unfavourable
market conditions.

c. Any contract in which the net present value of cash ows is lower than 0 and the entity achieves future
operating loss

d. A contract in which the unavoidable costs of meeting the obligations under the contract exceed the
unavoidable costs of meeting the obligations of similar contract on the market

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Câu H ỏi 22 Đúng Đạt điểm 1,00 trên 1,00

Contingent asset is recorded when cash in ows are:

Select one:
a. Probable.

b. Received.

c. Virtually certain.

d. Uncertain

Câu H ỏi 23 Đúng Đạt điểm 1,00 trên 1,00

When a provision is needed that involves a number of outcomes, the provision is calculated using the expected value of
expenditure. The expected value of expenditure is to total expenditure of:

Select one:

a. Each possible outcome divided by the number of outcomes

b. Each possible outcome

c. Each possible outcome weighted according to the probability of each outcome happening

d. Each possible outcome multiplied by the number of outcomes

24

Which of the following statements about the requirements of IAS 37 Provisions, contingent liabilities and contigent assets
are correct? 1. A contingent assets should be disclosed by note if an in ow of economic bene ts is probable; 2. No
disclosure of contingent liability is required if the possibility of a transfer of economic bene ts arising is remote; 3.
Contingent assets must not be recognised in nancial statements unless an in ow of economic bene ts is virtually certain to
arise.

Select one:

a. 1 and 3

b. 1 and 2
c. All are correct

d. 2 and 3

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Câu H ỏi 25 Đúng Đạt điểm 1,00 trên 1,00

Wanda Co allows customers to return faulty goods within 14 days of purchase. At 30 Nov 20X5 a provision of $6,548 was
made for sales returns. At 30 Nov 20X6, the provisions was re-calculated and should now be $7,634. What should be
reported in Wanda Co’s statement of pro t or loss for the year to 31 Oct 20X6 in respect of the provisions?

Select one:
a. A charge of $1,086

b. A credit of $7,634

c. A credit of $1,086

d. A charge of $7,634

26

Which of the following statements about provisions and contingencies is/are correct? 1.A company should disclosure
details of the changes in carrying value of a provisions from the beginning of the end of the year; 2. Contingent assets
must be recognised in the nancial statements in accordance with the prudence concept; 3. Contingent liabilities must be
treated as actual liabilities and provided for if it is probable that they will arise.

Select one:

a. All three statements are correct

b. 3 only

c. 2 and 3 only
d. 1 and 3 only

Câu H ỏi 27 Đúng Đạt điểm 1,00 trên 1,00

Which of the following best describes a provision according to of IAS 37 Provisions, contingent liabilities and contigent
assets ?

Select one:

a. A provision is a possible asset that arise from past events.

b. A provision is a liability of uncertain timing or amount

c. A provision is a possible obligation of uncertain timing or amount

d. A provision is a credit balance set up to o set a contingent asset so that the e ect on the statement of nancial
position is nil.

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Câu H ỏi 28 Đúng Đạt điểm 1,00 trên 1,00

When a restructuring involves the sale of an operation, at what point may an obligation arise under IAS 37?

Select one:

a. When a preferred buyer is located

b. When a binding sale agreement is executed

c. When an expression of interest is led

d. When business is marketed for sale

29

Which of the following is not a disclosure requirement for a contingent liability?

Select one:

a. Exact timing of out ow

b. Indication of uncertainties relating to the amount

c. Possibility of any reimbursement

d. Estimated nancial e ect

◄ IAS37 Examples (students)

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