Deck 25: Disclosure Issues

Question 1

Which of these would be a non- adjusting event requiring disclosure when occurring after the reporting period?

A)The discovery of an accounting error in the financial statements of the entity
B)The issue of significant guarantees to customers
C)The settling of a court case which shows that the entity had a liability to pay fines during the reporting period
D)The determination of the proceeds from the sale of some machinery before the end of the reporting period

Answer 1

B

Question 2

How does IAS 10 define events that occur after the reporting period?

A)Favourable events which occur between the end of the reporting period and the date the accounts are authorised for issue.
B)Unfavourable events which occur between the end of the reporting period and the date the accounts are authorised for issue.
C)Both favourable and unfavourable events which occur between the end of the reporting period and the date the accounts are authorised for issue.
D)All events occurring between the end of the reporting period and the date the accounts are authorised for issue,which would have a greater than 10% effect on the entities financial position.

Answer 2

C

Question 3

Which is the correct definition of diluted earnings per share?

A)This shows the earnings per share where the effects of future tax have been factored in
B)This shows the earnings per share where the effects of future inflation have been factored in
C)This shows the earnings per share where the effects of securities that will have a claim on equity earnings in the future have been factored in
D)This shows the earnings per share where the effects of changes in government policy in the future have been factored in

Answer 3

C

Question 4

Which of these is the justification for reporting segment assets or liabilities?

A)Only the assets or liabilities which are reported to the chief decision maker
B)All assets or liabilities should be reported
C)All assets or liabilities that have a value greater than 10% of that segments assets or liabilities should be reported
D)With the exception of profit or loss,all other assets or liabilities are disclosed if they would be reported to the chief decision maker

Question 5

IFRS 8 states additional segments of an entity shall be reported until segments making up 75% of the revenue of the entity have been disclosed

Question 6

Which of these would not be a criterion for aggregating two operating segments with similar economic characteristics?

A)Similar 'intangibles'- number of workforce,
B)Produces products or services of a similar nature
C)Uses production processes of a similar nature
D)Uses similar methods of distribution or provision of goods or services

Question 7

Earnings per share are a valuable measure of entity performance in their own right

Question 8

IAS 10 defines events after the reporting period as favourable and unfavourable events that occur after the financial statements are authorised for issue.

Question 9

IAS 34 requires quarterly interim reporting

Question 10

IFRS 8 states segments for reporting are to be identified following set guidelines