BS3007 module quiz

Match the following

• IAS 12

• transactions in foreign currency

• IAS 8

• sale of non-current asset

• IAS 16

• change in estimate

• IAS 21

• accounting for tax on current year profits

• IAS 37

• being sued by a customer

which of the following are characteristics of a provision

• present obligation relating to a past event

• uncertainty over amount or timing

• can be avoided

• likely to result in outflow of economic resources

Warranty provisions are measured using:

• most likely outcome

• weighted probability

• average of last 2 years

• last year's warranty expenses

which of the following are NOT allowed to be included in a restructuring provision per IAS 37?

• future training costs of remaining employees

• new computer systems

• redundancy costs

• costs related to termination of lease

Reorder the following

• determine performance obligations

• establish if there is a contract

• allocate transaction price to performance obligations

• determine the transaction price

• recognise revenue as performance obligations met

Co A sells kitchens. Its transaction price should be adjusted for which of the following?

• 2 year's financing given to customer

• special Black Friday discount of 5%

• prompt payment discount (if highly likely customer will pay early)

• prompt payment discount (if highly likely customer will not pay early)

Match the following for a company with a year end 31 December 2022 which finalised its financial statements on 30 June 2023

• IAS 8 change in estimate

• On 31 March 2023 the directors declared a dividend of £1million

• IAS 8 error

• the company's 2022 tax calculation was agreed with HMRC on 31 July 2023. The amount included in 2022 FS was understated by £10k.

• IAS 10 adjusting event

• On 28 February 2023 the directors discovered a major fraud had taken pace affecting the December 2022 inventory figure

• IAS 10 non-adjusting event

• On 15 July 2023 the company discovered a major fraud had taken place affecting the December 2022 inventory figure

which of the following would you find in an annual report of a UK listed company?

• budgets for the next 5 years

• strategic report

• financial statements

• directors' remuneration report

• independent auditor's report

which of the following is included in the cost of property, plant and equipment?

• decomissioning costs (if an obligation)

• financing costs if a qualifying asset under IAS 23

• prompt payment discount

• discount on list price

• admin costs

Which body issues IFRS?

• FRC

• IASB

• IAS

• ARGA