Quiz No. 1 (Finals) BSA 1B

In rare circumstances, when a retirement benefit plan has attributes of both defined contribution and defined benefit plans, according to PAS 26 it is deemed

• Defined benefit plan.
• Defined contribution plan.
• Neither a defined benefit nor a defined contribution plan.
• For aspects of the hybrid plan that are similar to a defined benefit plan: provisions of PAS 26 applicable to such plans are to be applied; for aspects of the hybrid plan that are similar to a defined contribution plan, provisions of IAS 26 that apply to such plans are to be applied.

In defined benefit plan, if the actuarial present value of promised retirement benefits exceeds the net assets available for benefits, there is

• Excess
• Deficit
• Retirement benefits
• Income

The financial statement of a retirement benefit plan, whether defined contribution plan or defined benefit plan, does not include which of the following?

• Statement of cash flows
• Net assets available for benefits
• Statement of changes in net assets available for benefits
• Note disclosures

In the case of a defined benefit plan, PAS 26

• Makes it incumbent upon the plan to obtain an actuarial valuation.
• Does not make it incumbent upon the plan to obtain an actuarial valuation.
• Allows the plan to estimate the present value of future benefits based on valuations done by other similar plans.
• Allows the plan to add a percentage based on consumer price index to the previous year’s valuation of actuarial valuation.

What is the main difference between the financial statements of a defined contribution plan and a defined benefit plan?

• The financial statements of defined contribution plan include a statement of net assets available for benefits.
• The financial statements of defined benefit plan include a statement of changes in net assets available for benefits.
• The financial statements of defined contribution plan show information on the actuarial present value of promised retirement benefits.
• The financial statements of defined benefit plan show information on the actuarial present value of promised retirement benefits.

An entity is preparing interim financial statements for six months ended June 30, 2023. In the interim financial statements, for six months, a statement financial position on June 30, 2023, a statement of comprehensive income for six months ended June 30, 2023 and a statement of cash flows for six months ended June 30, 2023 shall be presented. In addition, all of the following shall be presented, except

• Statement of financial position on June 30, 2022
• Statement of financial position on December 31, 2022
• Statement of comprehensive income for six months ended June 30, 2022
• Statement of cash flows for six months ended June 30, 2022

For interim reporting, an inventory loss from a market decline in the second quarter shall be recognized

• In the fourth quarter
• Proportionately in each of the second third and fourth quarters.
• proportionately in each of the first quarter, second, third, and fourth quarters.
• In the second quarter

Which statement is true regarding interim reporting?

• The independent view is required for interim financial statements.
• Interim reports are required on a quarterly basis.
• Interim reports are not required.
• Interim reports require the preparation of only a statement of comprehensive income and a statement of financial position.

There is presumption that anyone reading interim financial reports shall

• Understand all International Financial Reporting Standards.
• Have access to the records of the entity.
• Have access to the most recent annual financial report.
• Not make decisions based on the report.

If an entity does not prepare interim financial reports

• The year-end financial statements are deemed not to comply with IFRS.
• The year-end financials statements’ compliance with IFRS is not affected.
• The year-end financial statements shall not be acceptable under local jurisdiction.
• Interim financial reports shall be included in the year-end financial statements.