An entity that controls one or more entities refers to:

a. group
b. subsidiary
c. decision maker
d. parent

Feedback
Your answer is correct.
The correct answer is: parent
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The term 'subsidiaries' refers to:

a. none of the other answers is correct
b. entities controlled by the reporting entity
c. entities that, while not controlled or jointly controlled by the reporting entity, are subject to significant
influence by it
d. entities jointly controlled by the reporting entity and one or more third parties

Feedback
Your answer is correct.
The correct answer is: entities controlled by the reporting entity
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Parent company 'X' has power over the subsidiary "Y" and is exposed to returns from
involvement with 'Y' and have the ability to use power over 'Y' to affect the amount of the
parents returns. Additionally debt or equity instrument of a parent company 'X' is not traded in a
public market. In this situation 'X':
a. is not obliged to prepare consolidated financial statement
b. is not allowed to prepare consolidated financial statement
c. none of the other answers is correct
d. is obliged to prepare consolidated financial statement

Feedback
Your answer is correct.
The correct answer is: is not obliged to prepare consolidated financial statement
Question 4
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Investor 'X' has power over the investee "Y" and is exposed to returns from involvement with the
investee, however does not have the ability to use power over the investee to affect the amount
of the investors returns. Therefore 'X':
a. does not control 'Y', but should consolidate its financial statement
b. controls 'Y' and should consolidate its financial statement
c. does not control 'Y' and shouldn't consolidate its financial statement

d. controls 'Y', but shouldn't consolidate its financial statement

Feedback
Your answer is incorrect.
The correct answer is: does not control 'Y' and shouldn't consolidate its financial statement
Question 5
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

An investment entity:
a. should consolidate all its subsidiaries
b. none of the other answers is correct
c. is obliged to consolidate its subsidiaries
d. is obliged to measure its investments in particular subsidiaries at fair value through profit or loss

Feedback
Your answer is incorrect.
The correct answer is: is obliged to measure its investments in particular subsidiaries at fair value through
profit or loss
Question 6
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Z has sold all of its shares to the public. The company was formerly a state-owned entity. The
national regulator has retained the power to appoint the board of directors. An overseas entity

acquires 55% of the voting shares, but the regulator still retains its power to appoint the board of
directors. Who has control of the entity?
a. Neither the national regulator nor the overseas entity.
b. The board of directors.
c. The national regulator.
d. The overseas entity.

Feedback
Your answer is incorrect.
The correct answer is: Neither the national regulator nor the overseas entity.
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Financial statements presented by a parent (ie an investor with control of a subsidiary)

or an investor with joint control of, or significant influence over an investee are:
a. consolidated financial statements
b. non-consolidated financial statements
c. separate financial statements
d. individual financial statements

Feedback
Your answer is correct.
The correct answer is: separate financial statements
Question 8
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

According to IFRS 10 the term 'non-controlling interest' refers to:

a. equity in a subsidiary not attributable, directly or indirectly, to a parent
b. equity in a parent not attributable, directly or indirectly, to a subsidiary
c. equity in a subsidiary not attributable directly to a parent
d. equity in a parent not attributable directly to a subsidiary

Feedback
Your answer is incorrect.
The correct answer is: equity in a subsidiary not attributable, directly or indirectly, to a parent
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

An entity with decision-making rights that is either a principal or an agent for other parties refers
to:
a. subsidiary
b. parent
c. decision maker
d. group

Feedback

Your answer is correct.

The correct answer is: decision maker
Question 10
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Entity X controls an overseas entity Y. Because of exchange controls, it is difficult to transfer

funds
out of the country to the parent entity. X owns 100% of the voting power of Y. How should Y be
accounted
for?
a. It should be excluded from consolidation and the equity method should be used.
b. It should be excluded from consolidation and accounted for in accordance with IAS 39.
c. It is not permitted to be excluded from consolidation because control is not lost.
d. It should be excluded from consolidation and stated at cost.

Feedback
Your answer is incorrect.
The correct answer is: It is not permitted to be excluded from consolidation because control is not lost.

An entity owns a number of farms that harvest produce seasonally. Approximately 80% of the
entitys sales are in the period August to October. Because the entitys business is seasonal,
IAS 34 suggests
a. disclosure of financial information for the latest and comparative 12-month period in addition to the
interim report.
b. no additional disclosure
c. additional disclosure in the accounting policy note.
d. additional notes be written in the interim reports about the seasonal nature of the business.

Feedback

Your answer is incorrect.

The correct answer is: disclosure of financial information for the latest and comparative 12-month period
in addition to the interim report.
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

IAS 34 states a presumption that anyone reading interim financial reports will
a. not make decisions based on the report.
b. have access to the most recent annual report.
c. have access to the records of the entity.
d. understand all International Financial Reporting Standards.

Feedback
Your answer is correct.
The correct answer is: have access to the most recent annual report.
Question 3
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Under IAS 34, interim financial reports should be published

a. on a quarterly basis.
b. within a month of the half-year-end.

c. whenever the entity wishes.

d. once a year at any time in that year.

Feedback
Your answer is incorrect.
The correct answer is: whenever the entity wishes.
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The International Accounting Standards Committee:

a. encourages publicly traded entities to provide interim financial reports
b. obliges publicly traded entities to provide interim financial reports
c. discourages publicly traded entities to provide interim financial reports
d. prohibits publicly traded entities to provide interim financial reports

Feedback
Your answer is correct.
The correct answer is: encourages publicly traded entities to provide interim financial reports
Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If the entitys most recent annual financial statements were consolidated statements, an interim
financial report should be prepared on:
a. consolidated basis or non-consolidated basis
b. non-consolidated basis
c. consolidated basis and non-consolidated basis
d. consolidated basis

Feedback
Your answer is correct.
The correct answer is: consolidated basis
Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

IAS 34:
a. does mandate which entities should be required to publish interim financial reports
b. does mandate how frequently public entities should be required to publish interim financial reports
c. none of the other answers is correct
d. does mandate how soon after the end of an interim period frequently public entities should be required
to publish interim financial reports
Feedback
Your answer is correct.
The correct answer is: none of the other answers is correct
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Interim financial reports should include as a minimum

a. a complete set of financial statements complying with IAS 1.
b. a balance sheet and income statement only.
c. a condensed set of financial statements and selected notes.
d. a condensed balance sheet, income statement, and cash flow statement only.

Feedback
Your answer is correct.
The correct answer is: a condensed set of financial statements and selected notes.
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The IASB encourages publicly traded entities to provide interim financial reports
a. whenever the entity wishes.
b. on a quarterly basis.
c. at least at the end of the half-year and within 60 days of the end of the interim period.
d. within a month of the half-year-end.

Feedback

Your answer is correct.

The correct answer is: at least at the end of the half-year and within 60 days of the end of the interim
period.
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

An entity operates in the travel industry and incurs costs unevenly through the financial year.
Advertising costs of 2 million were incurred on March 1, 2015, and staff bonuses are paid at
year-end based on sales. Staff bonuses are expected to be around 20 million for the year; of
that sum, 3 million would relate to the period ending March 31, 2015. What costs should be
included in the entitys quarterly financial report to March 31, 2015?
a. Advertising costs 2 million; staff bonuses 3 million.
b. Advertising costs 0.5 million; staff bonuses 5 million.
c. Advertising costs 2 million; staff bonuses 5 million.
d. Advertising costs 0.5 million; staff bonuses 3 million.

Feedback
Your answer is correct.
The correct answer is: Advertising costs 2 million; staff bonuses 3 million.
Question 10
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Interim period is:

a. a financial reporting period ending 30 June or 31 December

b. a period shorter than a full financial year

c. none of the other answers is correct
d. a financial reporting period ending 31 March or 30 June or 30 September

Feedback
Your answer is correct.
The correct answer is: a period shorter than a full financial year

Interim financial reports should include as a minimum

a. a condensed set of financial statements and selected notes.
b. a complete set of financial statements complying with IAS 1.
c. a condensed balance sheet, income statement, and cash flow statement only.
d. a balance sheet and income statement only.

Feedback
Your answer is correct.
The correct answer is: a condensed set of financial statements and selected notes.
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

An entity operates in the travel industry and incurs costs unevenly through the financial year.
Advertising costs of 2 million were incurred on March 1, 2015, and staff bonuses are paid at
year-end based on sales. Staff bonuses are expected to be around 20 million for the year; of
that sum, 3 million would relate to the period ending March 31, 2015. What costs should be
included in the entitys quarterly financial report to March 31, 2015?
a. Advertising costs 0.5 million; staff bonuses 5 million.
b. Advertising costs 2 million; staff bonuses 3 million.

c. Advertising costs 2 million; staff bonuses 5 million.

d. Advertising costs 0.5 million; staff bonuses 3 million.

Feedback
Your answer is correct.
The correct answer is: Advertising costs 2 million; staff bonuses 3 million.
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IAS 34 in interim financial report an entity:

a. none of the other answers is correct
b. is allowed to publish a complete or a condensed set of financial statements
c. should publish a set of condensed financial statements
d. should publish a complete set of financial statements

Feedback
Your answer is correct.
The correct answer is: is allowed to publish a complete or a condensed set of financial statements
Question 4
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

An entity owns a number of farms that harvest produce seasonally. Approximately 80% of the
entitys sales are in the period August to October. Because the entitys business is seasonal,
IAS 34 suggests
a. no additional disclosure
b. disclosure of financial information for the latest and comparative 12-month period in addition to the
interim report.
c. additional disclosure in the accounting policy note.
d. additional notes be written in the interim reports about the seasonal nature of the business.

Feedback
Your answer is incorrect.
The correct answer is: disclosure of financial information for the latest and comparative 12-month period
in addition to the interim report.
Question 5
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

An entity is preparing half-yearly financial information in line with IAS 34. The period to be
covered by the financial statements is the six months to June 30, 2015. A new IFRS has been
published that is effective for periods beginning on or after January 1, 2015. The entity must
adopt the IFRS
a. in its interim financial statements to June 30, 2015, and its annual financial statements to December
31, 2015.
b. in its interim financial statements to June 30, 2015, only.
c. in the financial statements for the year to December 31, 2015, only.
d. at its own discretion.

Feedback
Your answer is incorrect.

The correct answer is: in its interim financial statements to June 30, 2015, and its annual financial
statements to December 31, 2015.
Question 6
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Interim period is:

a. a period shorter than a full financial year
b. none of the other answers is correct
c. a financial reporting period ending 31 March or 30 June or 30 September
d. a financial reporting period ending 30 June or 31 December

Feedback
Your answer is incorrect.
The correct answer is: a period shorter than a full financial year
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Entities, whose business is highly seasonal, financial information for the twelve months up to the
end of the interim period and comparative information for the prior twelve-month period is:
a. encouraged to be disclosed in notes of interim financial report
b. prohibited to be disclosed in notes of interim financial report
c. none of the other answers is correct

d. required to be disclosed in notes of interim financial report

Feedback
Your answer is correct.
The correct answer is: encouraged to be disclosed in notes of interim financial report
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

IAS 34 states a presumption that anyone reading interim financial reports will
a. have access to the most recent annual report.
b. have access to the records of the entity.
c. understand all International Financial Reporting Standards.
d. not make decisions based on the report.

Feedback
Your answer is correct.
The correct answer is: have access to the most recent annual report.
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If an entitys interim financial report is described as complying with International Financial

Reporting Standards, it must comply with:

a. all IFRSs except from IAS32, IAS39 and IFRS4

b. all IFRSs
c. all of the requirements of IAS 34
d. none of the other answers is correct

Feedback
Your answer is correct.
The correct answer is: all of the requirements of IAS 34
Question 10
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

According to IAS 34 in interim financial report, which of the following statements is not required
to present data cumulatively for the current financial year to date:
a. statement of changes in equity
b. statements of profit or loss and other comprehensive income
c. statement of cash flow
d. statement of financial position

Feedback
Your answer is incorrect.
The correct answer is: statement of financial position

The International Accounting Standards Committee:

a. obliges publicly traded entities to provide interim financial reports
b. encourages publicly traded entities to provide interim financial reports

c. discourages publicly traded entities to provide interim financial reports

d. prohibits publicly traded entities to provide interim financial reports

Feedback
Your answer is correct.
The correct answer is: encourages publicly traded entities to provide interim financial reports
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The IASB encourages publicly traded entities to provide interim financial reports
a. on a quarterly basis.
b. within a month of the half-year-end.
c. at least at the end of the half-year and within 60 days of the end of the interim period.
d. whenever the entity wishes.

Feedback
Your answer is correct.
The correct answer is: at least at the end of the half-year and within 60 days of the end of the interim
period.
Question 3
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

If an entity does not prepare interim financial reports, then:

a. the year-end financial statements will not be acceptable under local legislation.
b. the year-end financial statements are deemed not to comply with IFRS.
c. interim financial reports should be included in the year-end financial statements.
d. the year-end financial statements compliance with IFRS is not affected.

Feedback
Your answer is incorrect.
The correct answer is: the year-end financial statements compliance with IFRS is not affected.
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

In interim financial report an entity:

a. is required to provide less information as compared with its annual financial statements
b. may be required or may elect to provide less information as compared with its annual financial
statements
c. is required to provide the same scope of information as compared with its annual financial statements
d. is required to provide more information as compared with its annual financial statements

Feedback
Your answer is correct.
The correct answer is: may be required or may elect to provide less information as compared with its
annual financial statements
Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

IAS 34:
a. does mandate which entities should be required to publish interim financial reports
b. none of the other answers is correct
c. does mandate how frequently public entities should be required to publish interim financial reports
d. does mandate how soon after the end of an interim period frequently public entities should be required
to publish interim financial reports
Feedback
Your answer is correct.
The correct answer is: none of the other answers is correct
Question 6
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

If an entitys interim financial report is described as complying with International Financial

Reporting Standards, it must comply with:
a. all IFRSs
b. all of the requirements of IAS 34
c. none of the other answers is correct
d. all IFRSs except from IAS32, IAS39 and IFRS4

Feedback
Your answer is incorrect.
The correct answer is: all of the requirements of IAS 34
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The International Accounting Standards Committee encourages publicly traded entities to:
a. provide interim financial reports at least as of the end of the third quarter of their financial year and to
make their interim financial reports available not later than 45 days after the end of the interim period
b. provide interim financial reports at least as of the end of their financial year and to make their interim
financial reports available not later than 90 days after the end of the interim period
c. provide interim financial reports at least as of the end of the first half of their financial year and to make
their interim financial reports available not later than 60 days after the end of the interim period
d. provide interim financial reports at least as of the end of the first quarter of their financial year and to
make their interim financial reports available not later than 30 days after the end of the interim period
Feedback
Your answer is correct.
The correct answer is: provide interim financial reports at least as of the end of the first half of their
financial year and to make their interim financial reports available not later than 60 days after the end of
the interim period
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If the entitys most recent annual financial statements were consolidated statements, an interim
financial report should be prepared on:
a. consolidated basis or non-consolidated basis
b. non-consolidated basis
c. consolidated basis
d. consolidated basis and non-consolidated basis

Feedback
Your answer is correct.
The correct answer is: consolidated basis
Question 9
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Under IAS 34, interim financial reports should be published

a. once a year at any time in that year.
b. on a quarterly basis.
c. within a month of the half-year-end.
d. whenever the entity wishes.

Feedback
Your answer is incorrect.
The correct answer is: whenever the entity wishes.
Question 10
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

According to IAS 34 in interim financial report, which of the following statements is not required
to present data cumulatively for the current financial year to date:
a. statement of financial position
b. statement of changes in equity
c. statements of profit or loss and other comprehensive income
d. statement of cash flow

Feedback
Your answer is incorrect.
The correct answer is: statement of financial position

If an entity changes the structure of its internal organisation in a manner that causes the
composition of its reportable segments to change, the corresponding information for earlier
periods, including interim periods:
shall be restated unless the information is not available and the cost to develop it would be
excessive
there is no need to restate this information, unless the entity will chose to do so
shall never be restated
always shall be restated

Feedback
Your answer is correct.
The correct answer is: shall be restated unless the information is not available and the cost to develop it
would be excessive
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If revenues from transactions with a single external customer amount to 10 per cent or more of
an entitys revenues, the entity shall:
define reporting entity related to this customer
none of the other answers is correct
disclose the identity of a major customer or the amount of revenues that each segment reports from that
customer
shall disclose that fact, the total amount of revenues from each such customer, and the identity of the
segment or segments reporting the revenues

Feedback
Your answer is correct.
The correct answer is: shall disclose that fact, the total amount of revenues from each such customer, and
the identity of the segment or segments reporting the revenues
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If the total external revenue reported by operating segments constitutes less than 75 per cent of
the entitys revenue:
reported entity is encouraged to identify additional reporting segments or allocate revenues and assets to
existing reporting segments

additional operating segments shall be identified as reportable segments until at least 75 per cent of the
entitys revenue is included in reportable segments
this is a normal situation and reporting entity is not obliged to do anything
entity should provide additional disclosures about the rest of the company activities, which are not
included in operating segments
Feedback
Your answer is correct.
The correct answer is: additional operating segments shall be identified as reportable segments until at
least 75 per cent of the entitys revenue is included in reportable segments
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Information about other business activities and operating segments that are not reportable shall
be:
allocated proportionally to existing segments
presented in global values in the face of financial statement
combined and disclosed in an all other segments category
none of the other answers is correct

Feedback
Your answer is correct.
The correct answer is: combined and disclosed in an all other segments category
Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Is there any limit to the number of reportable segments that an entity can separately disclose ?
yes, the limit is 8 reportable segments
no, there is no limit, however as the number of segments that are reportable increases above ten, the
entity should consider whether a practical limit has been reached
yes, the limit is 10 reportable segments
yes, the limit is 5 reportable segments

Feedback
Your answer is correct.
The correct answer is: no, there is no limit, however as the number of segments that are reportable
increases above ten, the entity should consider whether a practical limit has been reached
Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The most commonly used criterion to identify an operating segment is:

any products and goods produced or delivered by the entity (each type of product-goods constitutes a
discrete segment)
segment manager, who is directly accountable to and maintains regular contact with the chief operating
decision maker to discuss operating activities, financial results, forecasts, or plans for the
segment

source of financing, which is used to finance operating activities of a given division / segment
type of assets. which is used in a given division / segment

Feedback
Your answer is correct.
The correct answer is: segment manager, who is directly accountable to and maintains regular contact
with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans
for the segment
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If an operating segment no longer meets the criteria for reportability, management:

none of the other answers is correct
is obliged to continue reporting information about this segment
may choose to continue reporting information about this segment if this information is useful
is obliged to discontinue reporting information about this segment

Feedback
Your answer is correct.
The correct answer is: may choose to continue reporting information about this segment if this information
is useful
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

An entity shall report separately information about an operating segment that:

reported revenue, including both sales to external customers and intersegment sales or transfers, is 5 per
cent or more of the combined revenue, internal and external, of all operating segments
liabilities are 10 per cent or more of the combined liabilities of all operating segments.
absolute amount of its reported profit or loss is 10 per cent or more of the greater, in absolute amount, of
(i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined
reported loss of all operating segments that reported a loss
assets are 5 per cent or more of the combined assets of all operating segments.

Feedback
Your answer is correct.
The correct answer is: absolute amount of its reported profit or loss is 10 per cent or more of the greater,
in absolute amount, of (i) the combined reported profit of all operating segments that did not report a loss
and (ii) the combined reported loss of all operating segments that reported a loss
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

In the case of segment reporting an entity should provide reconciliations of:

the total of the reportable segments' hidden reserves to the entity's hidden reserves
the total of the reportable segments revenues to the entitys revenue
the total of the reportable segments' tax payable to the entity's tax payable
the total of the reportable segments' contingent liabilities to the entity's contingent liabilities

Feedback
Your answer is correct.

The correct answer is: the total of the reportable segments revenues to the entitys revenue
Question 10
Correct
Mark 1.00 out of 1.00

Flag question

Question text

For each reportable segment entity should report:

a. goodwill impairment
b. measure of profit or loss and total assets
c. cash flows from operations
d. dividends attributable to each segment

Feedback
Your answer is correct.
The correct answer is: measure of profit or loss and total assets

When determining the transaction price, an entity shall consider the effects of the following:
variable consideration

consideration payable to a customer

all of the other questions is correct

YES, correct !!!

constraining estimates of variable consideration

non-cash consideration

the existence of a significant financing component in the contract

Feedback
Your answer is correct.
When determining the transaction price, an entity shall consider the effects of the following: all of the
other questions is correct
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The transaction price is:

the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of third parties and
including all expected costs of the contract
the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer, including all expected costs of the contract
the total amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer
the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of third
parties

YES, correct !!!

Feedback
Your answer is correct.
The transaction price is: the amount of consideration to which an entity expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The core principle of IFRS 15 is that:

an entity recognises revenue, which is probable and taking into consideration prudence principle

an entity recognises revenue, which is probable and taking into consideration accounting conservatism

an entity recognises revenue to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services

YES, correct !!!

none of the other questions is correct

Feedback

Your answer is correct.

The core principle of IFRS 15 is that: an entity recognises revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Put in order the following steps of the IFRS 15 core principle:

Answer 1

Second
Step

Identify the performance obligations in the contract

Answer 2

First
Step

Identify the contract(s) with a customer

Answer 3

Fifth
Step

Recognise revenue when (or as) the entity satisfies a performance obligation

Answer 4

Third
Step

Determine the transaction price

Answer 5
Allocate the transaction price to the performance obligations in the contract

Fourth
Step

Feedback
Your answer is correct.
Put in order the following steps of the IFRS 15 core principle
1.

Identify the contract(s) with a customer

2.

Identify the performance obligations in the contract

3.

Determine the transaction price

4.

Allocate the transaction price to the performance obligations in the contract

5.

Recognise revenue when (or as) the entity satisfies a performance obligation

Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

A contract modification is:

none of the other answers is correct

a change in the scope of a contract

a change in the price of a contract

a change in the scope or price of a contract

YES, correct !!!

Feedback
Your answer is correct.
A contract modification is: a change in the scope or price of a contract
Question 6
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

A performance obligation may be satisfied:

none of the other answers is correct

at a point of time or over time

only over time for promises to transfer services to a customer

only at a point of time for promises to transfer goods to a customer

Nooo..., this answer is wrong !!!

Feedback

Your answer is incorrect.

A performance obligation may be satisfied:at a point of time or over time
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

IFRS 15 is effective for annual periods beginning on or after:

1 January 2019, however earlier application is permitted

1 January 2018, however earlier application is permitted

1 January 2017, however earlier application is permitted

YES, correct !!!

1 January 2017 and earlier application is not permitted

Feedback
Your answer is correct.
IFRS 15 is effective for annual periods beginning on or after: 1 January 2018, however earlier
application is permitted
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If two or more contracts are negotiated as a package with a single commercial objective with the
same customer and entered into at or near the same time they should be:
combined into a single contract

YES, correct !!!

treated as a separate and distinct contracts only if recognition criteria as set in 9 are met

none of the other answers is correct

treated as a separate and distinct contracts

Feedback
Your answer is correct.
If two or more contracts are negotiated as a package with a single commercial objective with the same
customer and entered into at or near the same time they should be: combined into a single contract
Question 9
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

When entity receives the consideration from a customer, but the recognition criteria are not met
yet, the amount of consideration should be recognized as:
income

deferred income

revenue

Nooo..., this answer is wrong !!!

liability

Feedback
Your answer is incorrect.
When entity receives the consideration from a customer, but the recognition criteria are not met yet, the
amount of consideration should be recognized as: liability
Question 10
Correct
Mark 1.00 out of 1.00

Flag question

Question text

A contract does not exist if:

each party of the contract has the unilateral right to terminate a wholly unperformed contract without

compensating the other party

YES, correct !!!

is not in written form

the entity has not yet received, and is not yet entitled to receive, any consideration in exchange for
promised goods or services
the entity has not yet transferred any promised goods or services to the customer

Feedback
Your answer is correct.
A contract does not exist if: each party of the contract has the unilateral right to terminate a wholly
unperformed contract without compensating the other party

If the entitys performance creates or enhances an asset (for example, work in progress) that
the customer controls as the asset is created or enhanced it means that according to IFRS 15:
an entity satisfies a performance obligation and recognize revenue at a given point of time

Nooo..., this answer is wrong !!!

none of the other answers is correct

an entity transfers control of a good or service over time and, therefore, satisfies a performance obligation
and recognises revenue over time
it doesnt create any additional economic benefits for the entity, therefore there is no reason to recognize
revenue
Feedback

Your answer is incorrect.

If the entitys performance creates or enhances an asset (for example, work in progress) that the
customer controls as the asset is created or enhanced it means that according to IFRS 15: an entity
transfers control of a good or service over time and, therefore, satisfies a performance obligation
and recognises revenue over time
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If the entitys performance creates or enhances an asset (for example, work in progress) that
the customer controls as the asset is created or enhanced it means that according to IFRS 15:
none of the other answers is correct

it doesnt create any additional economic benefits for the entity, therefore there is no reason to recognize
revenue
an entity transfers control of a good or service over time and, therefore, satisfies a performance obligation

and recognises revenue over time

YES, correct !!!

an entity satisfies a performance obligation and recognize revenue at a given point of time

Feedback
Your answer is correct.

If the entitys performance creates or enhances an asset (for example, work in progress) that the
customer controls as the asset is created or enhanced it means that according to IFRS 15: an entity
transfers control of a good or service over time and, therefore, satisfies a performance obligation
and recognises revenue over time
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The amount of revenue recognized is:

the amount of expected future economic benefits

the amount of discounted future cash flows

the amount of non-discounted future cash flows

amount allocated to the satisfied performance obligation

YES, correct !!!

Feedback
Your answer is correct.
The amount of revenue recognized is: amount allocated to the satisfied performance obligation
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS an agreement between two or more parties that creates enforceable rights
and obligations is defined as:
contract

YES, correct !!!

performance obligation

revenue

contractual obligation

Feedback
Your answer is correct.
According to IFRS an agreement between two or more parties that creates enforceable rights and
obligations is defined as:contract
Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

An entity typically allocates the transaction price to each performance obligation on the basis of
the relative stand - alone selling prices of each distinct good or service promised in the contract.
However if a stand-alone selling price is not observable, an entity should:
do not recognize any revenue

recognize liability on the cash-basis

estimate stand-alone selling price

YES, correct !!!

recognize liability on the accrual basis

Feedback
Your answer is correct.
An entity typically allocates the transaction price to each performance obligation on the basis of the
relative stand - alone selling prices of each distinct good or service promised in the contract. However if a
stand-alone selling price is not observable, an entity should: estimate stand-alone selling price
Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS 15 revenue is defined as:

amount of money which is expected to flow to the entity in the foreseeable future

income arising in the course of an entitys extraordinary activities

increases in economic benefits during the accounting period in the form of inflows or enhancements of
assets or decreases of liabilities that result in an increase in equity, other than those relating to
contributions from equity participants
income arising in the course of an entity's ordinary activities

YES, correct !!!

Feedback
Your answer is correct.
According to IFRS 15 revenue is defined as: income arising in the course of an entitys ordinary
activities
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The consideration (payment) promised in a contract with a customer may includes:

only fixed amounts

only variable amounts

fixed amounts or variable amounts or both: fixed and variable amounts

YES, correct !!!

only fixed amounts or only variable amounts

Feedback
Your answer is correct.
The consideration (payment) promised in a contract with a customer may includes:fixed amounts or
variable amounts or both: fixed and variable amounts
Question 8
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

Entity shall recognise the consideration received from a customer as a liability until:
the recognition criteria as defined in 9 of IFRS 15 are subsequently met

the entity has no remaining obligations to transfer goods or services to the customer and all, or
substantially all, of the consideration promised by the customer has been received by the entity and is
non-refundable

Nooo..., this answer is wrong !!!

the contract has been terminated and the consideration received from the customer is non-refundable

all of the other answers is correct

Feedback
Your answer is incorrect.
Entity shall recognise the consideration received from a customer as a liability until: all of the other
answers is correct
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS 15 a contract can be:

none of the other answers is correct

written, oral or implied by an entitys customary business practice

YES, correct !!!

written or oral

only written

Feedback
Your answer is correct.

According to IFRS 15 a contract can be: written, oral or implied by an entitys customary business
practice
Question 10
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS 15 an entity shall recognize revenue when:

a customer accepts the liability to pay the cash

cash is collected

future inflow of cash is probable

the entity satisfies a performance obligation

YES, correct !!!

Feedback
Your answer is correct.
According to IFRS 15 an entity shall recognize revenue when: the entity satisfies a performance
obligation

According to IFRS 15 a contract can be:

only written

written, oral or implied by an entitys customary business practice

YES, correct !!!

written or oral

none of the other answers is correct

Feedback
Your answer is correct.
According to IFRS 15 a contract can be: written, oral or implied by an entitys customary business
practice
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The transaction price is:

the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer, including all expected costs of the contract
the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of third parties and
including all expected costs of the contract

the total amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer
the amount of consideration to which an entity expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of third
parties

YES, correct !!!

Feedback
Your answer is correct.
The transaction price is: the amount of consideration to which an entity expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS an agreement between two or more parties that creates enforceable rights
and obligations is defined as:
contractual obligation

revenue

performance obligation

contract

YES, correct !!!

Feedback
Your answer is correct.
According to IFRS an agreement between two or more parties that creates enforceable rights and
obligations is defined as:contract
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The asset is transferred to the customer when:

the entity ceases to control the asset

the entity received all consideration promised in the contract

the customer obtains the control of that asset

YES, correct !!!

the entity ceases to control the asset and received all consideration promised in the contract

Feedback
Your answer is correct.

The asset is transferred to the customer when: the customer obtains the control of that asset
Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The amount of revenue recognized is:

the amount of non-discounted future cash flows

the amount of expected future economic benefits

the amount of discounted future cash flows

amount allocated to the satisfied performance obligation

YES, correct !!!

Feedback
Your answer is correct.
The amount of revenue recognized is: amount allocated to the satisfied performance obligation
Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

A contract does not exist if:

the entity has not yet received, and is not yet entitled to receive, any consideration in exchange for
promised goods or services
is not in written form

the entity has not yet transferred any promised goods or services to the customer

each party of the contract has the unilateral right to terminate a wholly unperformed contract without

compensating the other party

YES, correct !!!

Feedback
Your answer is correct.
A contract does not exist if: each party of the contract has the unilateral right to terminate a wholly
unperformed contract without compensating the other party
Question 7
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The scope of IFRS 15 should be applied to:

none of the other questions is correct

all contracts with customers

all contracts with customers except leases, insurance contracts, financial instruments, guarantees and

certain non-monetary exchanges

YES, correct !!!

all contracts with customers except financial instruments

Feedback
Your answer is correct.
The scope of IFRS 15 should be applied to: all contracts with customers except leases, insurance
contracts, financial instruments, guarantees and certain non-monetary exchanges
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

If two or more contracts are negotiated as a package with a single commercial objective with the
same customer and entered into at or near the same time they should be:
combined into a single contract

YES, correct !!!

treated as a separate and distinct contracts

treated as a separate and distinct contracts only if recognition criteria as set in 9 are met

none of the other answers is correct

Feedback
Your answer is correct.
If two or more contracts are negotiated as a package with a single commercial objective with the same
customer and entered into at or near the same time they should be: combined into a single contract
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS 15 revenue is defined as:

income arising in the course of an entitys extraordinary activities

amount of money which is expected to flow to the entity in the foreseeable future

increases in economic benefits during the accounting period in the form of inflows or enhancements of
assets or decreases of liabilities that result in an increase in equity, other than those relating to
contributions from equity participants
income arising in the course of an entity's ordinary activities

YES, correct !!!

Feedback
Your answer is correct.
According to IFRS 15 revenue is defined as: income arising in the course of an entitys ordinary
activities
Question 10
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

When entity receives the consideration from a customer, but the recognition criteria are not met
yet, the amount of consideration should be recognized as:
revenue

liability

income

Nooo, noo..., this is wrong !!!

deferred income

Feedback
Your answer is incorrect.
When entity receives the consideration from a customer, but the recognition criteria are not met yet, the
amount of consideration should be recognized as: liability

X has control over the composition of Ys board of directors. X owns 49% of Y and is the largest
shareholder. X has an agreement with Z, which owns 10% of Y, whereby Z will always vote in
the same way as X. Can X exercise control over Y?
a. X cannot exercise control because it can control only the makeup of the board and not necessarily the
way the directors vote.
b. X cannot exercise control because it owns only 49% of the voting rights.

c. X can exercise control solely because it has an agreement with Z for the voting rights to be used in

whatever manner X wishes.

d. X can exercise control because it controls more than 50% of the voting power, and it can govern the
financial and operating policies of Y through its control of the board of directors.
Feedback
Your answer is incorrect.
The correct answer is: X can exercise control because it controls more than 50% of the voting power, and
it can govern the financial and operating policies of Y through its control of the board of directors.
Question 2
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Which of the following is not a valid condition that will exempt an entity from preparing
consolidated
financial statements?
a. The parent entity is a wholly owned subsidiary of another entity.

b. The ultimate parent entity produces consolidated financial statements available for public use that
comply with IFRS.
c. The parent entity is in the process of filing its financial statements with a securities

commission.

d. The parent entitys debt or equity capital is not traded on the stock exchange.

Feedback
Your answer is correct.
The correct answer is: The parent entity is in the process of filing its financial statements with a securities
commission.
Question 3
Correct
Mark 1.00 out of 1.00

Flag question

Question text

a parent and its subsidiaries refers to:

a. decision maker

b. group

c. parent

d. subsidiary

Feedback
Your answer is correct.
The correct answer is: group
Question 4
Correct
Mark 1.00 out of 1.00

Flag question

Question text

According to IFRS 10 the term 'power' refers to:

a. existing rights that give the future ability to direct all intragroup activities

b. existing rights that give the current and future ability to direct all intragroup activities

c. existing rights that give the current and future ability to direct the relevant activities

d. existing rights that give the current ability to direct the relevant activities

Feedback
Your answer is correct.
The correct answer is: existing rights that give the current ability to direct the relevant activities
Question 5
Correct
Mark 1.00 out of 1.00

Flag question

Question text

A manufacturing group has just acquired a controlling interest in a football club that is listed on a
stock exchange. The management of the manufacturing group wishes to exclude the football
club from the consolidated financial statements on the grounds that its activities are dissimilar.
How should the football club be accounted for?
a. The entity should be consolidated as there is no exemption from consolidation on the grounds of

dissimilar activities.

b. The entity should not be consolidated; details should be disclosed in the financial statements.

c. The entity should not be consolidated using the purchase method but should be consolidated using
equity accounting.
d. The entity should not be consolidated and should appear as an investment in the group accounts.

Feedback
Your answer is correct.
The correct answer is: The entity should be consolidated as there is no exemption from consolidation on
the grounds of dissimilar activities.
Question 6
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Financial statements of a group in which the assets, liabilities, equity, income, expenses and
cash flows of the parent and its subsidiaries are presented as those of a single economic entity
are:
a. consolidated financial statements

b. separate financial statements

c. individual financial statements

d. non-consolidated financial statements

Feedback
Your answer is correct.
The correct answer is: consolidated financial statements
Question 7
Incorrect
Mark 0.00 out of 1.00

Flag question

Question text

In which situation an entity (parent) should derecognize the assets and liabilities of the
subsidiary from the consolidated statement of financial position (balance sheet) ?
a. when the parent is the only owner of the subsidiary

b. when the market value of the subsidiary is lower than its book value

c. when a parent loses control of a subsidiary

d. none of the other answers is correct

Feedback
Your answer is incorrect.
The correct answer is: when a parent loses control of a subsidiary
Question 8
Correct
Mark 1.00 out of 1.00

Flag question

Question text

An entity that is controlled by another entity refers to:

a. group

b. subsidiary

c. decision maker

d. parent

Feedback
Your answer is correct.
The correct answer is: subsidiary
Question 9
Correct
Mark 1.00 out of 1.00

Flag question

Question text

The accounting concept, which focuses on the existence of the group as an economic unit
refers to:
a. proprietary (parent entity) concept

b. entity concept

c. parent entity extension concept

d. going concern principle

Feedback
Your answer is correct.
The correct answer is: entity concept
Question 10
Correct
Mark 1.00 out of 1.00

Flag question

Question text

Where should minority interests be presented in the consolidated balance sheet?

a. Within long-term liabilities.

b. Within the parent shareholders equity.

c. In between long-term liabilities and current liabilities.

d. Within equity but separate from the parent shareholders equity.

Feedback
Your answer is correct.
The correct answer is: Within equity but separate from the parent shareholders equity.