IFRS5 is the accounting standard that governs:

non-current assets held for sales and discontinued operations

A non-current asset or a disposal group which is held for sale should be measured at:

lower of carrying amount and its fair value less costs to sell

Non-current asset should be classified as held for sales if:

sale must be highly probable, it is available for immediate sale in its present condition

IAS37 prescribes the following treatment for contingent liability

estimate the amount and disclose in the notes to the accounts

Which of the followings is an adjusting event:

A debtor is declared bankrupt a few days after the year end

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ICR Lecture 4

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Questions 10

Answers

1
The IAS relating to events after the reporting period is:
IAS18
IAS16
IFRS10
IAS10
2
A provision should be recognised when:
entity has a present obligation as a result of a past event
probable that outflow of resources are required to settle the obligation
all the above
reliable estimate can be made of the obligation
3
Provisions, contingent liabilities and contingent assets are covered by:
IAS38
IFRS5
IAS36
IAS37
4
IFRS5 is the accounting standard that governs:
non-current assets held for own use and discontinued operations
investment properties and discontinued operations
non-current assets held for sales and discontinued operations
non-current assets held for sales and investment properties
5
IAS37 forbids provision to be made for obligation under onerous contract
True
False
6
A non-current asset or a disposal group which is held for sale should be measured at:
fair value less costs to sell
lower of carrying amount and its fair value less costs to sell
lower of carrying amount and its recoverable amount
cost less accumulated depreciation and impairment
7
Non-current asset should be classified as held for sales if:
it is available for sale after modifications
the asset was advertised for sales
sale must be highly probable
it is available for immediate sale in its present condition
8
IAS37 prescribes the following treatment for contingent liability
estimate the amount and informed the directors
estimate the amount and make payment
estimate the amount and recognize in the accounts
estimate the amount and disclose in the notes to the accounts
9
Depreciation should not be charged with regard to non-current assets or disposal groups which are held for sale.
True
False
10
Which of the followings is an adjusting event:
The company's factory was damaged by a flood a few days after year end
The company announced that it is buying over a competitor
Issues of new shares not long after year end
A debtor is declared bankrupt a few days after the year end

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