41. Which of the following would result in an unrealised profit within a group scenario? A A parent sells a building originally costing $800,000 to its subsidiary for $900,000. The subsidiary still holds this asset at the date of consolidation. B A parent sells a building originally costing $800,000 to its subsidiary for $900,000. The subsidiary has sold this asset before the date of consolidation. C A parent sells goods which originally cost $14,000 to its subsidiary for $18,000. The subsidiary has sold all of these goods at the date of consolidation. D A parent sells goods which originally cost $14,000 to an associate for $18,000. The associate has sold all of these goods at the date of consolidation. 42. Which of the following explains the value that relevant information contains? A Instructive value B Fair value C Confirmatory value D Approximate value 43. Which of the following is an example of following the principle of faithful representation? A Showing lease payments as a rental expense B Being prudent by recording the entire amount of a convertible loan as a liability C Creating a provision for staff relocation costs as part of a planned restructuring D Recording a sale and repurchase transaction with a bank as a loan rather than a sale 44. A forum for consultation with parties affected by the work of the International Accounting Standards Board is provided by: A The International Financial Reporting Interpretations Committee B The IFRS Advisory Council C The IFRS Foundation D The IFRS Consulting Committee 45. Which of the following criteria need to be satisfied in order for an element to be recognised within the financial statements? (i) It meets the definition of an element of the financial statements. (ii) Recognition provides relevant information. (iii) Recognition provides a reliable measure. (iv) The element has fair value. (v) Recognition provides faithful representation of the element. A (i), (ii) and (v) B (i), (iii) and (v) C (i), (ii) and (iv) D (i), (iii) and (iv) give me only the correct options no explanation
Question
- Which of the following would result in an unrealised profit within a group scenario? A A parent sells a building originally costing 900,000. The subsidiary still holds this asset at the date of consolidation. B A parent sells a building originally costing 900,000. The subsidiary has sold this asset before the date of consolidation. C A parent sells goods which originally cost 18,000. The subsidiary has sold all of these goods at the date of consolidation. D A parent sells goods which originally cost 18,000. The associate has sold all of these goods at the date of consolidation.
- Which of the following explains the value that relevant information contains? A Instructive value B Fair value C Confirmatory value D Approximate value
- Which of the following is an example of following the principle of faithful representation? A Showing lease payments as a rental expense B Being prudent by recording the entire amount of a convertible loan as a liability C Creating a provision for staff relocation costs as part of a planned restructuring D Recording a sale and repurchase transaction with a bank as a loan rather than a sale
- A forum for consultation with parties affected by the work of the International Accounting Standards Board is provided by: A The International Financial Reporting Interpretations Committee B The IFRS Advisory Council C The IFRS Foundation D The IFRS Consulting Committee
- Which of the following criteria need to be satisfied in order for an element to be recognised within the financial statements? (i) It meets the definition of an element of the financial statements. (ii) Recognition provides relevant information. (iii) Recognition provides a reliable measure. (iv) The element has fair value. (v) Recognition provides faithful representation of the element. A (i), (ii) and (v) B (i), (iii) and (v) C (i), (ii) and (iv) D (i), (iii) and (iv) give me only the correct options no explanation
Solution
- A
- C
- D
- B
- B
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