IAS and IFRS

Which accounting standard sets out the expected format, content and disclosures in a published Statement of Financial Position, Statement of Profit or Loss, and Statement of Changes in Equity?

[blank_start]IAS 2 Inventories[blank_end] covers the valuation of inventories, which must be stated at the [blank_start]lower[blank_end] of cost and Net Realisable Value (NRV). Cost is defined as "all costs of [blank_start]purchase[blank_end], costs of [blank_start]conversion[blank_end] and other costs incurred in bringing inventories to their present [blank_start]location[blank_end] and [blank_start]condition[blank_end]". Net Realisable Value (NRV) is the expected [blank_start]selling[blank_end] price in ordinary business transactions, [blank_start]less[blank_end] any remaining costs to complete and [blank_start]sell[blank_end]. For example, the remaining costs to completion may include marketing and distribution costs, or remaining costs of conversion for inventory that is [blank_start]WIP[blank_end].

IFRS 3 Business Combinations outlines the accounting required when one business combines with another, such as during an acquisition or merger. A business combination is defined as when one or more entities (subsidiaries) gains some control of another (the parent).

Advise what IAS 8 relates to. Select all that apply

IAS 7 Statement of Cash Flows relates to Statements of Cash Flows. Which of the following IS NOT TRUE about this standard?

Complete the following: [blank_start]IAS[blank_end] [blank_start]1[blank_end] Presentation of Financial Statements [blank_start]IAS[blank_end] [blank_start]2[blank_end] Inventories [blank_start]IFRS[blank_end] [blank_start]3[blank_end] Business Combinations [blank_start]IAS[blank_end] [blank_start]7[blank_end] Statement of Cash Flows [blank_start]IAS[blank_end] [blank_start]8[blank_end] Accounting Policies

Under IAS 10 Events After The Reporting Period, an 'event after the reporting period' is a favourable or unfavourable event that occurs between the end of the reporting period and the date the financial statements are authorised for issue.

Which of the following statements are true?

[blank_start]IAS 12[blank_end] Income Taxes covers the accounting treatment for income taxes, both domestic and foreign. These taxes are usually based on the [blank_start]profit[blank_end] the business makes. Current tax, i.e. tax not yet paid/received, is an [blank_start]asset[blank_end] if it is owed to us by the government and a [blank_start]liability[blank_end] if we owe it to the government. We would need to recognise a deferred tax liability or deferred tax asset if there is a [blank_start]temporary difference[blank_end]. This would occur when the carrying amount in the Statement of Financial Position is [blank_start]not the same[blank_end] as the actual tax asset or tax liability owed.

IFRS 15 Revenue from Contracts With Customers covers how and when revenue will be recognised.

According to IFRS 15 Revenue From Contracts With Customers, revenue is defined as 'income arising in the course of an entity's ordinary activities'.

Which of the following does IFRS 15 Revenue from Contracts with Customers cover?

[blank_start]IAS[blank_end] [blank_start]16[blank_end] Property, Plant and [blank_start]Equipment[blank_end] covers the recognition of [blank_start]assets[blank_end], the [blank_start]depreciation[blank_end] charges to be recognised for those [blank_start]assets[blank_end] and the determination of the [blank_start]carrying[blank_end] amounts of those [blank_start]assets[blank_end]. According to [blank_start]IAS[blank_end] [blank_start]16[blank_end] Property, Plant and [blank_start]Equipment[blank_end], the depreciable amount of a tangible, non-current asset should be allocated on a [blank_start]systematic[blank_end] basis over its [blank_start]useful[blank_end] [blank_start]life[blank_end]. The depreciable amount of the [blank_start]asset[blank_end] is its [blank_start]cost[blank_end] less its [blank_start]residual[blank_end] value on disposal/sale.