Bài tập trắc nghiệm Kế toán quốc tế

Câu hỏi trắc nghiệm và đáp án Kế toán quốc tế - Nội dung liên quan đến IAS, IFRS - Đại học Sư phạm Kỹ thuật TPHCM - HCMUTE

1 The financial statements most frequently provided include all of the following except the statement ofretained earnings.

2 All the following are differences between financial and managerial accounting in how accountinginformation is used except to plan and control company's operations, decide whether to invest inthe company, evaluate borrowing capacity to determine the extent of a loan to grant

3 Which of the following represents a form of communication through financial reporting but notthrough financial statements? President's letter.

4 The process of identifying, measuring, analyzing, and communicating financial information needed bymanagement to plan, evaluate, and control an organization's operations is called managerialaccounting.

5 The major financial statements include all of the following except: Statement of changes in financialposition.

6 Which of the following statements is true? Over 115 countries require or permit use ofInternational Financial Reporting Standards (IFRS).

7 How does accounting help the capital allocation process attract investment capital? Provides timely,relevant information.

8 An effective capital allocation process promotes productivity, encourages innovation, provides anefficient market for buying and selling securities

9 What would be an advantage of having all countries adopt and follow the same accounting standards?Comparability, Lower preparation costs.

10 What is due process in the context of standard setting at the IASB? FASB operates in full view of thepublic, Public hearings are held on proposed accounting standards, Interested parties can maketheir views known.

11 What is a possible danger if politics plays too big a role in developing IFRS? Financial reportingstandards that are not truly generally accepted.

14 According to IAS2 Inventories, which TWO of the following costs should be included in inventoryvaluations? Transport costs for raw materials, Fixed production overheads

15 How should import duties be dealt with when valuing inventories at the lower of cost and net realisablevalue (NRV) according to IAS2 Inventories? Added to cost

16 How should prompt payment discount be dealt with when valuing inventories at the lower of cost andnet realisable value (NRV), according to IAS2 Inventories? Ignored

17 How should sales staff commission be dealt with when valuing inventories at the lower of cost and netrealisable value (NRV), according to IAS2 Inventories? Deducted in arriving at NRV

18 How should trade discounts be dealt with when valuing inventories at the lower of cost and netrealisable value (NRV) according to IAS2 Inventories? Deducted from cost

19 Are the following statements true or false, according to IAS2 Inventories? (1) Cost of factory

management should be included in the cost of inventory, (2) Maintenance expenses for an item of

equipment used in the manufacturing process should be included in the cost of inventory True, True20 The Coronet Company has a cost card in relation to an item of goods manufactured as follows:

Materials 70, Storage costs of finished goods 18, Delivery to customers 4, Irrecoverable purchase taxes

6, According to IAS2 Inventories, at what figure should the item be valued in inventory? CU7621 The Parrotbill Company produces units of product UB06 The following costs have been incurred:

Direct materials and labour 1.80, Variable production overhead 0.25, Factory administrative costs 0.15,Fixed production costs 0.20, Under IAS2 Inventories, what is the correct inventory value of a unit of

product UB06? CU2.40

22 The Hopkins Company is a manufacturing company The cost per unit of an item of inventory is shown

on its card as follows: Materials 30, Production labour costs 33, Production overheads 12, Generaladministration costs 10, Marketing costs 5, According to IAS2 Inventories, what is the value of one

completed item of inventory in Hopkins's statement of financial position?CU75

23 The Motmot Company has partially-completed inventory located in its factory, to which the following

estimates relate: Production costs incurred to date 2,900, Production costs to complete 2,000, Transportcosts to customer 300, Future selling costs 400, Selling price 2,800 According to IAS2 Inventories,

what is the net realisable value of Motmot's inventory? CU100

24 The Whimbrel Company has two products in its inventory which have costs and selling prices per unit

as follows: Product X: Selling price 200, Materials and conversion costs 150, General administrationcosts 30, Selling costs 60, Profit/(loss) (40) Product Y: Selling price 300, Materials and conversioncosts 180, General administration costs 80, Selling costs 70, Profit/(loss) (30) At the year end, themanufacture of items of inventory has been completed but no selling costs have yet been incurred.According to IAS2 Inventories, should these products be carried in Whimbrel's statement of financial

position at cost or net realisable value (NRV) rule? NRV Cost

25 What are inventories measured at? Lower of cost and net realizable value

26 What do inventories cost include? Purchase costs, net of trade volume rebates, conversion costsand other costs to bring inventory to its present condition and location

27 What does NOT need to be disclosed in the financial statements? Physical count of items ininventory

28 What is NRV? Estimated selling price in the ordinary course of business, less the estimated costsof completion and the estimated costs to make the sale

29 What is considered inventory? Assets held for sale in the ordinary course of business, Assets held inthe process for production for such sale, Assets in the form of materials or supplies to beconsumed in the production process or rendering of services

30 The cost of inventories, other than those dealt with in paragraph 23, shall be assigned by using FIFO or

weighted average cost formula for all inventories An entity shall use the same cost formula for all

inventories having a similar nature and use to the entity TrueIAS 16 - Property, Plant and Equipment

31. Multipart has purchased a budget airline and is discussing the way in which it should depreciate theaircraft as aircraft have a lifespan of 10 years, engines have a lifespan of seven years and tyres have alifespan of 18 months The aircraft should be depreciated on a straight-line basis over – Seven yearsuseful life of the engine, 1.5 years useful life of the tyres, and 10 years useful life applied to thebalance

32 Multipart has purchased a budget airline and is discussing the way in which it should depreciate the

aircraft as aircraft have a lifespan of 10 years, engines have a lifespan of seven years and tyres have a

lifespan of 18 months The aircraft should be depreciated on a straight-line basis over Debited to theclass of PPE that is being revalued and credited to a equity

33 Is a change in depreciation policy from reducing balance to straight line a change in accounting policy?False

34 Which of the following is not a principal issue in accounting for property, plant and equipment?Determination of fair value

35 IAS 16 applies to bearer plants but it does not apply to the produce on bearer plants True

36 The residual value of an asset is the estimated amount that an entity would currently obtain from

disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the ageand in the condition expected at the end of its useful life.

37 Which of the following is not an example of directly attributable costs? Costs of conducting businessin a new location or with a new class of customer

38 It means that the cost of the PPE together with the related accumulated depreciation shall be removedfrom the statement of financial position Derecognition

39 It is defined as the systematic allocation of the depreciable amount of an asset over the useful life.Depreciation

40 These are the factors of depreciation in order to properly compute the amount of depreciation.Depreciable Amount, Residual Value, Useful life

41 Depreciation of an asset begins when it is available for use True42 Property, plant & equipment (IAS 16) are intangible assets False

43 Residual Value is the estimated net amount currently obtainable if the asset is at the end of the usefullife True

44 The depreciation method shall not be reviewed at least at every year-end False

45 Depreciable amount is the cost of an asset or other amount substituted for cost, less the residual valueTrue

46 An entity has a policy of revaluing its PPE An asset cost $15m on 1 January 2008, has a useful life of

15 years and is depreciated on a straight-line basis to a zero residual value The value of the asset at 31December 2008 was $14.5m At 31 December 2009, the market value of the asset was $12.5m The

accounting entry at 31 December 2009 would be - Depreciation $1.04m to income statement,fall in value of $0.5m charged to revaluation reserve and $0.46m to the income statement

47 An entity has a policy of revaluing its PPE An asset cost $5m on 1 January 2008 and has a useful life

of five years and is depreciated on a straight-line basis to a zero residual value The value of the asset at

31 December 2008 was $3.8m The fall in value will be accounted for as follows – Depreciation $1mand fall in value of $200,000 both to the income statement

48 An entity owns a fleet of company cars and executive vehicles, and has other property and equipment

in order to service the fleet It decided to revalue some of its property, plant and equipment Which one

of the following options complies with IAS 16? Revalue an entire class of property, plant andequipment

49 The basic principle of IAS 16 is that items of property, plant and equipment that qualify for recognitionshould initially be measured at cost True

50 When the disposal proceeds are greater than the carrying amount there is a profit on disposal and whenthe disposal proceeds are less than the carrying amount there is a loss on disposal True

51 In the case of revaluation loss, we will adjust revaluation surplus, if any, and debit revaluation surplus,credit goes to non current asset What if any further residual loss comes in? Debit Income statementfor further residual loss

IAS 38 – Intangible Assets

52 Which of the following is an objective of IAS 38? To specify disclosure requirements aboutintangible assets

53 Which of the following shall be excluded from the scope of IFRS 16 Leases and shall be accounted inaccordance with IAS 38? Motion picture films, Patents and copyrights, Manuscripts

54 If an asset incorporates both intangible and tangible elements, it shall be treated under .IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets

55 Which of the following does not define an “asset”? A resource which value in use exceeds itshistorical cost

IAS 40 Investment Property

56 Which of the following would be recognised as an investment property under IAS 40 InvestmentProperty in the consolidated financial statements of Build Co? A property held by Build Co as aright-of-use asset and leased out under a six-month lease

57 Wetherby Co purchased a machine on 1 July 2007 for $500,000 It is being depreciated on a

straight-line basis over its useful life of ten years Residual value is estimated at $20,000 On 1 January 20X8,following a change in legislation, Wetherby Co fited a safety guard to the machine The safety guardcost $25,000 and has a useful life of five years with no residual value What amount will be charged to

profit or loss for the year ended 31 March 20X8 in respect of depreciation on this machine? [Machine((500,000 – 20,000) / 10 × 9/12)=36,000] + [Safety guard ((25,000/5) × 3/12)=1,250 ] = depreciationon this machine=37,250

58 Which of the following should be capitalised in the initial carrying amount of an item of plant? (1)Cost of transporting the plant to the factory, (2) Cost of installing a new power supply requiredto operate the plant

59 On 1 October 20X4, Kalatra Co commenced drilling for oil from an undersea oilfield Kalatra Co is

required to dismantle the drilling equipment at the end of its five-year licence This has an estimatedcost of $30m on 30 September 20X9 Kalatra Co’s cost of capital is 8% per annum and $1 in fiveyears’ time has a present value of 68 cents What is the provision which Kalatra Co would report in its

statement of financial position as at 30 September 20X5 in respect of its oil operations? [(30,000 x0.68) × (1+8%)] = $22,032,000

60 When a parent is evaluating the assets of a potential subsidiary, certain intangible assets can be

recognised separately from goodwill, even though they have not been recognised in the subsidiary's

own statement of financial position A new research project which the subsidiary has correctlyexpensed to profit or loss but the directors of the parent have reliably assessed to have asubstantial fair value

61 On 1 October 20X4, Flash Co acquired an item of plant under a five-year finance lease agreement The

plant had a cash purchase cost of $25m The agreement had an implicit finance cost of 10% per annumand required an immediate deposit of $2m and annual rentals of $6m paid on 30 September each yearfor five years What is the current liability for the leased plant in Flash Co's statement of financial

position as at 30 September 20X5? [25,000-2,000 23,000 + 2,300 (10% int) 6,000 (pmt) = 19,30019,300+1,930(10\%int) - 6000(pmt) = 15 ,230], Current liability = 19,300,000 - 15,230,000 =$4,070,000

62 Financial statements represent transactions in words and numbers To be useful, financial information

must represent faithfully these transactions in terms of how they are reported Which of the following

accounting treatments would be an example of faithful representation? Derecognising factored tradereceivables sold without recourse

63 When a single entity makes purchases or sales in a foreign currency, it will be necessary to translate the

transactions into its functional currency before the transactions can be included in its financial records.In accordance with IAS 21 The Effect of Changes in Foreign Currency Exchange Rates, which TWOof the following foreign currency exchange rates may be used to translate the foreign currency

purchases and sales? The rate that existed on the day that the purchase or sale took place, Anaverage rate for the year, provided there have been no significant fluctuations throughout theyear.

64 On 1 October 20X4, Hoy Co had $2.5m of equity share capital (shares of $0.50 each) in issue No new

shares were issued during the year ended 30 September 20X5, but on that date, there were outstandingshare options which had a dilutive effect equivalent to issuing 1.2 million shares for no consideration.Hoy Co's profit after tax for the year ended 30 September 20X5 was $1,550,000 The graph belowrepresents a trend in both basic and diluted earnings per share (EPS) since 20X3 Complete the EPStrend analysis by calculating the diluted EPS for the year ended 30 September 20X5 for Hoy Co and

click on the graph to identify its position ( 1 ,550/(2,500*2+1,200))=$0.25

65 Carter Co vacated its head office building and let it out to a third party on 30 June 20X8 The building

had an original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years It wasjudged to have a fair value on 30 June 20X8 of $950,000 At the year-end date of 31 December 20X8the fair value of the building was estimated at $1.2 million Carter Co uses the fair value model forInvestment property What amount will be shown in revaluation surplus at 31 December 20X8 in

respect of this building? 1 Depreciation p.a.= 900,000/50 = $18,000, 2 Carrying value of thebuilding as of 30th June 2018 = 900,000 - (18,000 x 8.5 years) = $747,000, 3 FV of building as of30th June 2018 = $ 950,000 IAS 40 requires that assets must be transferred across at the fairvalue of the date of transfer; The credit will go to revaluation reserve, Hence, revaluation reserveamount = 950,000 - 747,000 = $203,000, 4 The change in FV between 30th June 2018 and 31stDecember 2018 will be passed through P&L

66 Which one of the following would be recognised as an investment property under IAS 40 in theconsolidated financial statements of Buildco? A property held by Buildco under a finance lease andleased out under an operating lease

67 Which one of the following is not true concerning the treatment of investment propertiesunder IAS 40?A gain or loss arising from a change in the fair value of an investment property should berecognised in other comprehensive income.

68 10 Speculate owned an office building with a depreciated historical cost of $2 million and a remaining

useful life of 20 years at 1 April 20X2 On 1 October 20X2 Speculate ceased to occupy the buildingand let it out to a third party The property was reclassified as an investment property, applying the fairvalue model in accordance with IAS 40 Investment property The value of the property wasindependently assessed at $2.3 million at 1 October 20X2 and had risen to $2.34 million by 31 March20X3 What amount will be charged/credited to profit or loss in respect of this property for the year

ended 31 March 20X3? Charge $10,000

69 Which one of the following would be shown in the 'other comprehensive income' section of thestatement of profit or loss and other comprehensive income? Gain on revaluation of a factorybuilding

70 On 1 April 20X0 Slow and Steady Co held non-current assets that cost $312,000 and had accumulated

depreciation of $66,000 at this date During the year ended 31 March 20X1, Slow and Steady Codisposed of non-current assets which had originally cost $28,000 and had a carrying amount of$11,200 Slow and Steady Co’s policy is to charge depreciation of 40% on the reducing balance basis,with no depreciation charged in the year of disposal What is the depreciation charge to the statement

of profit or loss for the year ended 31 March 20X1? Carrying amount at 1 April 20X0 ($312,000 cost– $66,000 depreciation) = 246,000 Carrying amount of disposal (11,200) Carrying amount at 31March 20X1 234,800 Depreciation charge (40%) 93,920

71 An entity purchased the property for $6 million on 1 July 20X3 The land element of the purchase was

$1 million The expected life of the building was 50 years and its residual value nil On 30 June 20X5,the property was revalued to $7 million, of which the land element was $1.24 million and the buildings$5.76 million On 30 June 20X7, the property was sold for $6.8 million What is the gain on disposal of

the property that would be reported in the statement of profit or loss for the year to 30 June 20X7?

Gain $40,000

72 Carter vacated an office building and let it out to a third party on 30 June 20X8 The building had an

original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years It was judged tohave a fair value on 30 June 20X8 of $950,000 At the year-end date of 31 December 20X8, the fairvalue of the building was estimated at $1.2 million Carter uses the fair value model for investmentproperty What amount will be shown in the revaluation surplus on 31 December 20X8 in respect of

this building? Cost (1.1.20X0) = 900 Depreciation to 30.6.20X8 (900,000 × 8.5/50) = (153).Carrying amount 30.6.20X8 = 747 Revaluation surplus = 203

73 Apex Co issued the loan stock on 1 April 20X8 Three events or transactions must be taking place for

capitalization of borrowing costs to commence in accordance with IAS 23 Which of the following is

NOT one of these? Physical construction of the asset is nearing completion.

74 Which TWO of the following statements about IAS 20 Accounting for Government Grants andDisclosure of Government Assistance are true? A government grant related to the purchase of anasset should be recognized in profit or loss over the life of the asset Free marketing adviceprovided by a government department is excluded from the definition of government grants.75 Which of the following statements relating to intangible assets is true? The development of a new

process that is not expected to increase sales revenues may still be recognized as an intangibleasset.

76 Amco Co carries out research and development In the year ended 30 June 20X5 Amco Co incurred

total costs in relation to project X of $750,000, spending the same amount each month up to 30 April20X5, when the project was completed The product produced by the project went on sale from 31 May20X5 The project had been confirmed as feasible on 1 January 20X5, and the product produced by theproject was expected to have a useful life of five years What is the carrying amount of the

development expenditure asset as at 30 June 20X5? $295,000

77 Which of the following could be classified as development expenditure in M’s statement of financialposition as of 31 March 20Y0 according to IAS 38 Intangible Assets? $65,000 developing a specialtype of new packaging for a new energy‐efficient light bulb The packaging is expected to reduceM’s distribution costs by $35,000 a year.

78 Assoria Co had $20 million of capitalized development expenditure at cost brought forward on 1

October 20X7 in respect of products currently in production and a new project began on the same date.The research stage of the new project lasted until 31 December 20X7 and incurred $1.4 million ofcosts From that date, the project incurred development costs of $800,000 per month On 1 April 20X8,the directors of Assoria Co became confident that the project would be successful and yield a profitwell in excess of costs The project was still in development on 30 September 20X8 Capitalizeddevelopment expenditure is amortized at 20% per annum using the straight-line method What amountwill be charged to profit or loss for the year ended 30 September 20X8 in respect of research and

development costs? $7,800,000

79 Which accounting concept should be considered if the owner of a business takes goods from inventoryfor his own personal use? The business entity concept

80 According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following

are part of faithful representation? 1 It is neutral; 2 It is relevant; 3 It is presented fairly; 4 It is free

from material error 1 and 4

81 Which of the following accounting concepts means that similar items should receive a similaraccounting treatment? Consistency

82 Listed below are some characteristics of financial information.1 Relevance; 2 Consistency; 3 Faithful

representation; 4 Accuracy Which of these are qualitative characteristics of financial information

according to the IASB's Conceptual Framework for Financial Reporting? 1 and 3 only

83 ABC Ltd chooses cost model for its investment property At 1 Jan 20X8, ABC Ltd transferred an

investment property to an owner-occupied property Investment property has originally cost of $20million; accumulated depreciation up to the date of transfer was $12 million, there was no impairmentloss; property's fair value at 1 Jan 20X8 was $14 million What was the carrying value of the Owner-

occupied property recorded at 1 Jan 20X8? $8 million

84 Which of the following does not define investment property? Property used in the production orsupply of goods or services

85 Which of the following properties fall under the definition of investment property? A building ownedby an entity and leased out under an operating lease

86 Which of the following term does this statement define: "the amount of cash or cash equivalents paid

or the fair value of other consideration given to acquire an asset at the time of its acquisition or

construction? Cost

87 Under IAS 40-Investment Property, where should a gain or loss on disposal be recognized? Profit andloss statement

88 Which of the following are examples of investment properties: 1 Land held for long-term capital

appreciation; 2 Land held for an undetermined future use but not currently in use: 3 A building ownedby the undertaking (or held by the undertaking under a finance lease) and leased out, via one, or more,operating leases; 4 A building that is vacant, but is held to be leased out via one, or more, operatingleases: 5 Property held for sale in the ordinary course of business, 6 Property being built on behalf ofthird parties; 7 Owner-occupied property; 8 Property that is being built for use as investment property,9 Existing investment property that is being redeveloped for continued use as investment property: 10.

Property that is leased to another undertaking, under a finance lease? 1 to 4 and 8 to 9 only

89 ABC Ltd owns a property which has two parts, part A and part B Part A is used to earn rental income;

Part B is used for administrative purpose These two parts cannot be sold separately How should ABC

classify this property? Entire property should be classified as Investment property if the portion ofB is insignificant

90 Which of the following should be classified as Investment property? Land and building held to earnrental income

91 The closing exchange rate was €1.5 = $1 The entity’s functional currency is the dollar 1 An entity

purchases plant from a foreign supplier for €3 million on January 31, 20X6, when the exchange ratewas €2 = $1 At the entity’s year-end of March 31, 20X6, the amount has not been paid The closingexchange rate was €1.5 = $1 The entity’s functional currency is the dollar Which of the following

statements is correct? Cost of plant $1.5 million, exchange loss $0.5 million, trade payable $2million.

92 Which of these considerations would not be relevant in determining the entity’s functional currency?The currency that is the most internationally acceptable for trading.

93 An entity has a subsidiary that operates in a foreign country The subsidiary sold goods to the parentfor

€2.1 million The functional currency of the entity is the dollar The cost of the goods to the subsidiarywas €1.2 million The goods were recorded by the entity at $1.05 million (€2 = $1) and we're all unsoldat the year-end of December 31, 20X6 The exchange rate at that date was €1.5 = $1 What Is the value

of the intra group profit that will be eliminated at December 31, 20X6? $450,000

94 Which of the following parties cannot be granted shares or share options by the entity? None of theabove

95 For equity-settled share-based payment transactions, the entity shall measure the goods or

services received, and the corresponding increase in equity, directly, at the of the goods or

services received, unless that it cannot be estimated reliably Fair Value

96 Which of the following statement about expected vesting period agrees with IFRS 2? The entity shallestimate the length of the expected vesting period at grant date, based on the most likely outcomeof the performance condition

97 For a share-based payment transaction in which the terms of the arrangement provide an entity with the

choice of whether to settle in cash or by issuing equity instruments, the entity shall determine whetherit has to settle in cash and account for the share-based payment transaction accordingly.

100.Which of the following do not come within the definition of a share-based payment underIFRS 2? rights issue that includes some shareholder employees

101.Assume that Live Co has expected cash flows of $200,000 from domestic operations, SF200,000 from

Swiss operations, and 150,000 euros from Italian operations at the end of the year The Swiss franc'svalue and euro's value are expected to be $.83 and $1.29 respectively, at the end this year What are the

expected dollar cash flows of Live Co? $559,500

102.Assume AYN banks quoted bid/ask of the Canadian dollar is $0.75/$0.80 (mua/bán) The bid/askspread in this example is (TB) (giá bán-giá mua)/giá bán 6.25%

103.Livingston Co has a subsidiary in Korea The subsidiary reinvests half of its net cash flows into

operations and remits half to the parent Livingston's expected cash flows from domestic business are$100,000, and the Korean subsidiary is expected to generate 100 million Korean won at the end of theyear The expected value of the won is $.0012 What are the expected dollar cash flows of Livingston

Co.? $160,000

104.Bear Bank Yoyo Bank Bid price for NZ$ $.0224 $.0228 Ask price for NZ$ $.0227 $.0229 Given the

information above, how much are the profit from the arbitrage if we invest 1 million US dollars at the

beginning $4405.3 Giải: ($1000000/$0.0227)= 44.052.863,436 NZ$ (44.052.863,436× $0.0228)

=1.004.405,286$ Dollar profit ($1.004.405,286 – $1000000)=$4.405,286

105.Bank A: SGD/USD = 0.40 – 0.41 Bank B: SGD/USD = 0.42 – 0.425 Given this information, what

would be your gain if you use $1,000,000 and execute locational arbitrage (mua 0.41 ngân hàng A và

bán 0.42 ngân hàng B) $24,390

106.Assume that a Us firm can invest funds for one year in the US at 12% or invest funds in Mexico at

14% The spot rate of the peso is $.10 while the oneyear forward rate of the peso is $.10 If US firms

attempt to use covered interest arbitrage, what forces should occur: spot rate of peso increases,forward rate of peso decreases

107.Assume the following information: You have $1,000,000 to invest Current spot rate of pound =$1.30.

90 day forward rate of pound =$1.28 3 month deposit rate in US =3% 3 month deposit rate in GreatBritain =4% If you use covered interest arbitrage for a 90 day investment, what will be the amount of

US dollars you will have after 90 days trang 274 gtr TV Giải: (SOLUTION: $1,000,000/$1.30 =769,231 pounds (1.04) = 800,000 pounds 1.28 = $1,024,000)

108.Assume the British pound is worth $1.60 and the Canadian dollar is worth $0.80 What is the value ofthe Canadian dollar in pounds Giải: 0.80/1.6 = 0.50

109.Assume that the Mexican peso exhibits a 6-month interest rate of 6 percent, while the U.S dollar

exhibits a 6-month interest rate of 5 percent From a U.S investor’s perspective, the U.S dollar is thehome cur- rency According to IRP, the forward rate premium of the peso with respect to the U.S.

dollar gt tv 281 Giải: P=(1+0.05)/(1+0.06)-1=-0.0094 hay -0.94%

110.Luella Co buys an item of plant on 1 January 20X7 at a cost of $400,000 The plant has a useful life of

10 years and benefits from a 20% writing down allowance for tax purposes Luella has a year end of 31December and pays tax at a rate of 30% There is no deferred tax impact on acquisition of the asset

because carrying amount is equal to tax base at $400,000 At 31 December 20X7: • The carryingamount of the asset is 9/10 x $400,000 = $360,000 • The tax base of the asset is 80% x $400,000 =$320,000 • There is therefore a temporary difference of $40,000 • This is a taxable temporarydifference • It results in a deferred tax liability of 30% x $40,000 = $12,000

111.A company's trial balance shows a debit balance of $2.1 million brought forward on current tax and a

credit balance of $5.4 million on deferred tax The tax charge for the current year is estimated at $16.2million and the carrying amounts of net assets are $13 million in excess of their tax base The incometax rate is 30% What amount will be shown as income tax in the statement of profit or loss for the

year? 2.1 + 16.2 - ( 5.4 - 13*30%) = 16.8 million

112.A company's trial balance at 31 December 20X3 shows a debit balance of $700,000 on current tax and

a credit balance of $8,400,000 on deferred tax The directors have estimated the provision for incometax for the year at $4.5 million and the required deferred tax provision is $5.6 million, $1.2 million ofwhich relates to a property revaluation What is the profit or loss income tax charge for the year ended

31 December 20X3? 700,000 + 4.5 million - (8,400,000 - 5.6 million) - 1.2 million = $1.2 million

113.The following information relates to an entity (i) At 1 January 20X8 the carrying amount of

non-current assets exceeded their tax written down value by $850,000 (ii) For the year to 31 December20X8 the entity claimed depreciation for tax purposes of $500,000 and charged depreciation of$450,000 in the financial statements (iii) During the year ended 31 December 20X8 the entity revalueda property The revaluation surplus was $250,000 There are no current plans to sell the property (iv)The tax rate was 30% throughout the year What is the provision for deferred tax required by IAS 12

Income Taxes at 31 December 20X8? (850,000 + ( 500,000 - 450,000) +250,000)*30% = $345,000114.On 1 April 20X8 Collins Co, a company that uses the dollar($) as its functional currency,buys goods

from an overseas supplier,who uses Kromits (Kr) as its functional currency The goods are priced at Kr54,000 Paymentismade 2 months later on 31 May 20X8 The Prevailing exchange rates are: 1April

20X8 Kr1.80 : $1 /// 31 May 20X8 Kr1.75 : $1 Required: Recordthejournal entries for thesetransactions Translate at historic rate on 1 April, Kr54,000/1.8 = $30,000 /// Dr Purchases$30,000/// Cr Payables$30,000 /// On settlement Translate at historic rate on 31 May, Kr 54,000/1.75 =$30,857 /// Dr Payables$30,000 /// Dr SPL – foreign exchange loss $857 /// Cr Cash $30,857115.On1April20X8CollinsCo,acompanythatusesthe dollar($) as its functional currency, buys goods from an

overseas supplier,who uses Gromits (Kr)as its functional currency The goods are priced at Kr54,000.Payment is still outstanding at the reporting date of 30June 20X8 The prevailing exchange rates are: 1April 20X8 Kr1.80 : $1 /// 30 June 20X8 Kr1.70 : $1 /// Required: Record the journal entries for these

transactions Translate at historic rate on 1 April, Kr54,000/1.8 = $30,000 /// DrPurchases$30,000 /// Cr Payables$30,000 /// At The reporting date Payables are monetary items,so retranslate at the closing rate on 30 June, Kr54,000/1.70 = $31,765 /// Dr SPL $1,765 ($31,765 –$30,000) /// Cr Payables$1,765 At the reporting date Leave closing inventory at the originalcost,as inventory is non monetary item /// Dr Inventory $30,000 /// Cr Cost of sales $30,000116.ABC Co has a year end of 31 December 20X1 and uses the dollar ($) as its functional currency On 25

October 20X1 ABC Co buys goods from a Swedish supplier for Swedish Krona (SWK) 286,000 Ratesof exchange: 25 October 20X1 $1 =SWK 11.16 /// 16 November 20X1 $1 =SWK 10.87 /// 31December 20X1 $1 = SWK 11.02 Required: Show the accounting treatment for the above transactionsif: (a) A payment of SWK286,000 is made on 16 November 20X1 (b) The amount owed remains

outstanding at the year-end date (a) Original transaction 25 October 20X1 Value = 286,000/11.16 =$25,627 /// Dr Purchases 25,627 /// Cr Payables 25,627 /// 16 November 20X1 Payment286,000/10.87 = $26,311 /// Dr Payables 25,627 /// Dr SPL 684 (Balancing figure, 26,311 –25,627) /// Cr Cash 26,311 /// (b) If the amount remains outstanding: 31 December 20X1Retranslate payable 286,000/11.02 = $25,953 /// Dr SPL 326 (25,953 – 25,627) /// Cr Payables326 /// Note: The inventory would not be restated and would remain at the original transactionprice of $25,627.

117.Which of the following statements is not correct? IAS 21 applies to hedge accounting for foreigncurrency items, including the hedging of a net investment in a foreign operation

118.IAS 21 applies to the presentation in a statement of cash flows of the cash flows arising fromtransactions in a foreign currency, or to the translation of cash flows of a foreign operation False

119.Which of the following terms are defined by the statement: “The currency of the primary economicenvironment in which the entity operates”? Functional currency

120.Exchange rate is the ratio of exchange for two currencies

121.The International Accounting Standards Board the scope of IAS 21 foreign currencyderivatives the material on hedge accounting excludes from, and

122.In which of the following ways can an entity carry on foreign operations? Transactions in foreigncurrencies /// Foreign operations

123.Which of the following is an objective of IAS 21? To prescribe how to include foreign currencytransactions in the financial statements of an entity /// To prescribe how to include foreignoperations in the financial statements of an entity /// To prescribe how to translate financialstatements into a presentation currency

124.Which of the following is not a principal issue of IAS 21? How to determine the presentationcurrency of the financial statements /// How to determine the functional currency of the financialstatements

125.Under which of the following circumstances shall IAS 21 be applied? In accounting for transactionsand balances in foreign currencies, except for those derivative transactions and balances that arewithin the scope of IFRS 9 Financial Instruments /// In translating the results and financialposition of foreign operations that are included in the financial statements of the entity byconsolidation or the equity method /// In translating an entity’s results and financial position intoa presentation currency

126.Which of the following factors shall the entity consider in determining its functional currency? Thecurrency that mainly influences sales prices for goods and services /// The currency that mainlyinfluences labor, material and other costs of providing goods or services /// The currency of thecountry whose competitive forces and regulations mainly determine the sales prices of its goodsand services

127.Inventories are measured at: Lower of cost and net realizable value

128.Inventories include: Tangible assets lying in the store, which are intended for sale129.Inventory should be measured at the lower of cost and… Net realizable value

130.Any amount of write-down of inventories to net realisable value should be… recognised as anexpense in the period in which the write-down occurs

131.A retail trader fixes his sale price by adding 25% to the cost of every item purchased You are informed

that opening inventory was 284.400€, purchases were 842.800€ (equal purchase prices for all items)

and sales were 985.500€ Closing inventory should be: 338.800€ = 284.400+842.800-(985.500/1,25)132.Zippy Machines is in the business of procuring raw materials and sells them to international markets.

During the year, the Company bought four tons of raw materials costing 1.200€, 1.400€, 1.300€ and1.000€ respectively During the year it sold only one tone for 1.400€ and follows the FIFO method of

valuation Which of the following statements is TRUE? The cost of Inventory is $3.700 and the costof sales is $1.200

133.In a period of rising prices, the inventory method which is allowed under IFRS and tends to give thehighest reported cost of goods sold is: average cost

134.Handy Ltd values its closing inventory using the weighted average method What is the amount for the

cost of goods sold? U = Units, C = Unit Costs(€) /// Opening inventory: 10.000 U, 3 C /// Purchases:

137.A newly set up dot-com entity has engaged you as its financial advisor The entity has recently

completed one of its highly publicized research and development projects and seeks your advice on the

accuracy of the following statements made by one of its stakeholders Which one is true? Costsincurred during the “development phase” can be capitalized if criteria such as technicalfeasibility of the project being established are met

138.The cost of an intangible asset is composed of Purchase price including import duties andnonrefundable taxes

139.When an intangible asset is acquired by an exchange of assets, which of the following measures willneed to be considered in the determination of that cost? The: Fair value of the asset given up.

140.A brand name that was acquired separately should initially be recognized, according to IAS38Intangible assets, at Cost

141.Once recognized, intangible assets can be carried at Cost less accumulated amortization and lessaccumulated impairment losses

142.According to IAS38 Intangible assets, amortization of an intangible asset with a finite useful lifeshould commence when The costs can be identified with reasonable certainty

143.In relation to the amortization of intangible assets, if an intangible asset has a finite useful life: It mustbe amortized over that life.

144.In relation to amortization of intangible assets, IAS 38 Intangibles, requires that intangible assets withindefinite useful lives: Are not subject to an amortization charge.

145.In relation to the amortization of intangible assets, the general rule in IAS 38 Intangibles, is that unlessdemonstrated otherwise: The residual value is presumed to be zero.

146.Which statement is incorrect concerning internally generated intangible asset? Internally generatedgoodwill may be recognized as an intangible asset.

147.Which of the following intangible assets should be shown as a separate item on the statement offinancial position? Goodwill

148.Which of the following disclosures is not required by IAS 38? Fair value of similar intangible assetsused by its competitors.

149.An example for intangible assets are brands

150.The definition of intangible assets according to IAS 38 does not require future economic benefits canbe measured reliably

151.What is correct? Acquired brands are always recognized because it is assumed that they generatefuture economic benefits and their cost can be measured reliably

152.Which of the following are development costs? A firm uses a prototype which was developed byTUM to develop new batteries for electric vehicles

153.If an entity cannot distinguish research phase and development phase all costs are expensed

154.Which of the following does not have to be fulfilled in order to recognize development costs? ability tomonitor the development process

155.Which of the following intangible assets cannot be recognized if it is self- generated? Brands

156.Intangible assets are measured at the balance sheet date using the cost model or in the case of anactive market the revaluation model

157.The impairment only approach is used for intangible assets with an indefinite useful life158.For which assets is the impairment test never relevant? Inventories

159.Which of the following assets can have a indefinite useful life? Trademarks160.For which of the following assets can an active market exist? Production quotas

161.Which of the following measurement models is not permitted for the subsequent measurement ofintangible assets under IAS 38 Capital Asset Pricing Model

162.An intangible asset with a finite useful life should be amortized over: Its expected useful life163.Where is the amortisation of an intangible asset recognized? Profit or Loss

164.Which of the following definition criteria is not correct? Property, Plant and Equipment… are tangibleitems.

165.Which of the following statements describes the assumption underlying the straight-line method ofdepreciation? Depreciation is the same for each year of the asset's useful life.

166.Self-generated PPE that qualifies for initial recognition shall be measured at: Net realizable value167.WMB-AG purchases a machine for 1.000€ (excl VAT) and receives a trade discount of 10% What are

the initial cost of the PPE item in case no other purchase cost occur? 900€

168.The costs of a purchased vehicle are 6.000€ It will be used for 5 years and its residual value is

expected to be 1.000€ What is the annual amount of deprecation using straight line method of

the following statements is correct: The increase is recognized in revaluation surplus afterreversing a probable impairment of previous periods in the profit or loss.

174.An item classified as investment property shall initially be measured at: Initial Cost

175.If an entity uses the cost model for investment property, it must also disclose the fair value of theinvestment property in the: Notes

176.Under IAS 40 Investment Property, which of the following is correct? Investment property isproperty held by owner to earn rental income or for capital appreciation.

177.A gain arising from a change in the fair value of an investment property for which an entity has optedto use the fair value model is recognized in… general reserve in the shareholders' equity.

178.An impairment loss is calculated as the amount by which the… carrying amount of an asset exceedsits recoverable amount.

179.The depreciable amount is… the cost of an asset less its residual value.

180.Using the cost model, PPE is measured subsequent to recognition: cost less (minus) accumulateddepreciation and any impairment losses

181.In the revaluation model, revaluations are required: On a regular basis when fair values change, orare expected to change

182.In the component approach, when components have different useful lifes and have significant costcompared to the total cost of the PPE asset… all components are recognized and depreciatedseparately.

183.For a PPE asset, the depreciation charge for the year, calculated using the diminishing balance basis atthe rate of 35%, in case there is no impairment loss, would be arrived at as follows: 35% * (cost of theasset - accumulated depreciation).

184.A firm purchases new machines for 11.000€ in t0 and aims at showing a net income as high as possible

in t1 The useful life is 5 years and the residual value is 1.000€ Which of the following depreciation

models should the firm choose with respect to the new machines? Straight-line method185.Which is not an internal indicator for an impairment: Stock market crash

186.When do firms shall assess whether there is an indicator that an asset may be impaired? Eachreporting period

187.When the recoverable amount of an asset is less than its carrying value in the Statement of FinancialPosition, the asset is… impaired.

188.Under IAS 36, what is the recoverable amount of an asset? The higher of fair value less costs to selland value in use.

189.Under IAS 16, what is a necessary condition to use the revaluation model to measure property, plant,and equipment (PPE)? When the fair value can be reliably measured.

190.Under IAS 16, which of the following accounting treatments are allowed subsequently to initialrecognition? Cost model and revaluation model

191.With regard to the definition of revenue given by IFRS15, which of the following statements is true?Revenue may arise from either ordinary activities or extraordinary activities

192.When did the most recent changes to IFRS 15 become effective? January 1, 2018

193.If the agreed date of payment by a customer is later than the date on which goods or services are

transferred to that customer, part of the consideration should always be treated as finance income (not

revenue) False

194.Step 1 of the "five-step model" states that certain conditions must be satisfied before an entity canaccount for a contract with a customer Which of the following is not one of these conditions? It iscertain that the entity will collect the consideration to which it is entitled

195.A contract modification is always treated as a separate contract for the purposes of IFRS15 False 196.A single contract with a customer could include more than one performance obligation and it is

necessary to identify each performance obligation in the contract True

197.A company enters into a contract to build a factory for a customer The agreed price is £2m and the

specified completion date is 31 October 2016 However, the contract provides that the company shouldreceive an incentive payment of a further £250,000 if the factory is completed by 30 September 2016.Similarly, the price will be reduced by £250,000 if the factory is not completed until after 30 November2016 The company estimates that there is a 15% probability that the factory will be completed by 30September 2016, an 80% probability that it will be completed in October 2016 or November 2016 anda 5% probability that it will not be completed until after 30 November 2016 What is the expected

value of the transaction price for this contract? £2.025m

198.The accounting principle applied by IFRS15 when determining whether or not revenue should berecognised in respect of a repurchase agreement is: Substance over form

199.A performance obligation is satisfied over time if: The entity's performance creates an asset that thecustomer controls as it is created

200.A company enters into a contract to supply three distinct products to a customer The promise to supply

each of these products is regarded as a separate performance obligation The stand-alone prices of thethree products (if sold singly) are: Product X £12,500, Product Y £24,000, Product Z £27,500 Theagreed contract price is £57,600 How should this price be allocated to performance obligations?

Product X £11,250, Product Y £21,600, Product Z £24,750

201.If a contract with a customer provides a warranty, then the warranty always represents a separateperformance obligation and part of the transaction price must be allocated to it False

202.In general, contract costs incurred in relation to a contract with a customer must be: recognised as anasset, if they relate to a performance obligation which has not yet been satisfied.

203.The carrying amount of contract costs relating to a performance obligation and recognised as an asset is

$120,000 Further costs required in order to satisfy the obligation are estimated to be $30,000 Theconsideration receivable by the company when the obligation is satisfied is $132.000 Calculate theamount of the impairment loss (if any) which should be deducted from the contract asset and

recognised as an expense (120000+30000-132000) 18000

204.The definition of "inventories" given by international standard IAS2 states that items qualify as

inventories only if they are assets held for sale in the ordinary course of business or assets in the

process of production for such sale True or False? False

205.Which of the following items cannot be included in the cost of inventories? The cost of abnormalwastage of materials and labour

206.Which of the following items should be included in the cost of inventories? Conversion costs207.The cost formulas permitted by IAS2 are: FIFO and AVCO

208.The FIFO cost formula assumes that: The inventory items which are sold or consumed are thoseacquired longest ago

209.The net realisable value of inventories is defined by IAS2 as: Selling price less costs of completionand selling costs

210.On 31 December 2019, a company has partly-completed inventory with a cost to date of £26,300 It is

expected that further costs of £8,900 will be incurred in order to complete the inventory It will then besold for £47,500 Selling costs will be £2,000 The cost and the net realisable value of this inventory at

31 December 2019 are: £26,300 and £36,600

211.IAS2 states that inventories should be measured at: The lower of cost and net realisable value212.If production is abnormally low, the amount of fixed overheads allocated to each unit of production

should be calculated by dividing total fixed overheads by the number of units produced True or False?

213.At the end of an accounting period, the cost of a company's inventory is £450,000 This includes

damaged items with a cost of £25,000 which are expected to be sold for only £10,000 (less sellingexpenses of 5%) All other items of inventory have a net realisable value which exceeds cost The

amount at which the company's inventory should be recognised at the end of the period is: £434,500214.A company's inventories should be measured at the lower of total cost and total net realisable value.

True or False? False

215.A company which makes only one type of product incurs fixed production overheads of £180,000 for

an accounting year Actual production during the year was 30,000 units Normal production is 24,000units per annum The amount of fixed production overheads that should be allocated to each unit of

218.A company pays £40,000 to replace a major component of a factory machine The faulty component

that is replaced is sold for £2,000 The carrying amount of the machine just before this replacementoccurs is £450,000, of which £10,000 relates to the faulty component that is being replaced Therevised carrying amount of the machine after the replacement occurs and the profit or loss on disposal

of the faulty component are: Carrying amount £480,000, Loss £8,000

219.Which of the following would not be included in the cost of an item of property, plant and equipment?Refundable value added tax

220.On 31 December 2014, a company acquires land for £500,000 The land is revalued at £530,000 on 31

December 2015 and £460,000 on 31 December 2016 The company prepares financial statements to 31December each year and uses the revaluation model in relation to land The correct accounting

treatment of each revaluation in the statement of comprehensive income is as follows: 2015 - Othercomprehensive income £30,000, 2016 -Negative other comprehensive income £30,000, Expense£40,000

221.Depreciation is defined as the fall in value of an asset during an accounting period True or False?False