Professional Documents
Culture Documents
to accompany
Applying International
Accounting Standards
by
Alfredson, Leo, Picker, Pacter & Radford
Prepared by
Victoria Wise
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Question 2
The bonus issue of shares has the following impact on the equity of a company;
A
B
C
D
Question 3
A company issued share option is an instrument that gives the holder the right but not the
obligation to:
A
B
C
D
buy a certain number of shares in the company by a specified date at a stated price;
sell a certain number of shares in the company by a specified date at a stated price;
receive a certain dividend declared by the company by a specified date;
receive a bonus issue of shares in a proportion as notified by the company.
Question 4
Dividends declared after the balance sheet date but before the financial statements are authorised
for issue:
A
B
C
D
-3-
Question 5
IAS 10 Events after the Balance Sheet Date, states that if a dividend is declared after the balance
sheet date but before the financial statements are authorised for issue, the dividend is:
A
B
C
D
Question 6
The balance in the retained earnings account is affected by the transfer to that account of:
I.
II.
III.
IV.
V.
A
B
C
D
Question 7
Under IAS 16 Property, Plant and Equipment, an entity may choose to measure assets using the
revaluation model. If this model is chosen, revaluation increments are recognised:
A
B
C
D
Question 8
In relation to an asset revaluation surplus, an entity:
A
B
C
is not able to use this surplus for the payment of future dividends;
is able to use this surplus for the payment of future dividends;
is not able to transfer this surplus to any other reserve account;
-4D
can transfer the surplus to the income statement when the asset is disposed of.
Question 9
Foreign currency translation differences arise:
A
B
C
D
when foreign operations are translated from one currency into another currency for
presentation purposes;
whenever a transaction is originally recorded in the home currency of the reporting
entity;
as a result of translating the language used in one countrys financial statements into
the language of another country;
if the foreign currency denominated financial statements are not converted into
domestic currency for reporting purposes.
Question 10
According to IAS 39 Financial Instruments: Recognition and Measurement, gains and losses on
available-for-sale financial assets are recognised:
A
B
C
D
Question 11
IAS 1 Presentation of Financial Statements, requires the following items to appear on the face of
the statement of changes in equity:
I.
II.
III.
IV.
A
B
C
D
The net amount of cash from the issue of any securities during the period.
The cumulative effect of changes in accounting policy and the correction of
errors.
Each item of income or expenses that is required to be recognised directly in
equity.
Profit or loss for the period.
-5-
Question 12
The components of equity generally recognised by companies in a balance sheet are:
I.
II.
III.
IV.
V.
A
B
C
D
Provisions.
Debentures
Share capital.
Other reserves.
Retained earnings.
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ANSWERS
1
10
11
12