IFRS 1

Welcome to your IFRS Exam

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1)

The IPSAS equivalent of IAS 17 is IPSAS-

2)

The Income tax accounts of Enugu Ltd showed a balance of N100,000 on 1 January 2011 tax paid during the year was N90,000 and the estimated tax based on current year’s account is N120,000




What is the amount to be shown in the company’s statement of Financial Position as closing balance from the company’s income tax account?

3)

The Income tax accounts of Enugu Ltd showed a balance of N100,000 on 1 January 2011 tax paid during the year was N90,000 and the estimated tax based on current year’s account is N120,000




What is the amount to be debited to the company’s Income statement as    income tax for the year ended 31 December 2011

4)

The Enhancing qualitative characteristics of Financial statements include all except

5)

Fide plc acquired 75% of the shares in Tessy plc for N136,000 on 1 January 2011 when, Tessy plc, had retained earnings of N30,000. The market price of Tessy plc’s share before the date of acquisition was N1.60. Fide plc, values non-controlling interest at fair value, goodwill is not impaired.


The financial position of Tessy plc at 31, Dec, 2011 is as follows;


                                                         N’000


Property, plant and equipment                       100


Current assets                                      70


                                                          170


Ordinary share capital of N1.00 each       100


Retained earnings                                 50


Current liabilities                                   20


                                                          170


Fide plc acquired 75% of the shares in Tessy plc for N136,000 on 1 January 2011 when, Tessy plc, had retained earnings of N30,000. The market price of Tessy plc’s share before the date of acquisition was N1.60. Fide plc, values non-controlling interest at fair value, goodwill is not impaired.


The financial position of Tessy plc at 31, Dec, 2011 is as follows;


                                                         N’000


Property, plant and equipment                       100


Current assets                                      70


                                                          170


Ordinary share capital of N1.00 each       100


Retained earnings                                 50


Current liabilities                                   20


                                                          170


Calculate the amount of non – controlling interest


 

6)

The basis of measurement used for inventory values included in the financial statement is

7)

State the current IFRS formula as at 1/4/2014

8)

For a non – current assets to be classified as ‘held  for sale” it must satisfy the following conditions EXCEPT

9)

Needs for National Charts of Accounts (NCOA) include the following except

10)

In accordance with IFRS 10 on consolidated financial statements, an investor controls an investee if and only if certain conditions exist. State two of  such conditions? 

11)

Which of the following is not part of retained earnings?

12)

If cost of goods sold is N630,000 and profit margin is 25%, what is the   turnover?...................

13)

Non – controlling interest should be disclosed in consolidated statement of financial position as

14)

On 1st January 2010, Ogaga Plc issued 20,000 convertible debentures (Notes on Loans) at N100 per debenture, the debentures has a maturity of three years. Interest is payable annually in arrears at a nominal interest rate 


of 6%. Each debenture is convertible at any time up to maturity into 500 common Shares, when the debentures were issued the Market rate was 9%. The risk free rate annual interest rate for a three year term is 5%.


 


        Required: how do we present these debentures (Notes on Loans) in the financial statement and at what amount? 

15)

The profit of a company is N3,600,000 and the issued ordinary share capital was N 2400,000 @ N5.00 per share. Required: Calculate the EPS

16)

According to IAS 16-accounting for Property, Plant and Equipment, all of the following are features of non-current assets EXCEPT where they are

17)

Fatima, a Nigerian publicly listed holding company has a reporting date of 31 December each year its financial statements include one year comparatives. Fatima currently applies local GAAP accounting rules, but is intending to apply IFRSs for the first time in its financial statements (including comparatives) for the year ending 31 December 2012. its summarized consolidated balance sheet (under local GAAP) at 1 January 2011 is;


 


                                                                N 000                        N 000


        Property, plant and equipment                                             2,000


        Goodwill                                                                            900


        Development cost                                                               800


                                                                                                3700


Current assets


        Stock                                                300


        Debtors                                             500


        Bank                                                 40


                                                                840


 


        Short term liabilities-creditors               (640)


        Net current assets                                                              200


                                                                                                3900


 


        Long term liabilities


        Restructuring provision                               (500)


        Deferred tax                                       (600)                         (1100)


                                                                                                2,800


        Issued share capital                                                            1000


        Retained earnings                                                               1800


                                                                                                2800


Additional information


 


(i)     Fatima depreciation policy for its Property, plant and equipment has been based on tax rules set by its government. If depreciation had been based on the most appropriate method under IFRS the carrying value of the property, plant and Equipment at 1 January 2011 would have been N1,600,000


 


(ii)    The development costs originate from an acquired subsidiary of Fatima they do not qualify for recognition under IFRS they have a tax base nil and the deferred tax related to those costs is N200,000


 


(iii)    The inventory has been valued at prime cost. Under IFRS it would include an additional N60,000 of overheads.


 


(iv)   The restructuring provision does not qualify for recognition under IFRS


 


(v)    Based on IFRS the deferred tax provision required at 1 January 2011 including the effects of the developing expenditure is N720,000


Required: Prepare a summarized Statement of Financial Position for Fatima at the date of transition to IFRS (1 January 2011) applying the requirements of IFRS 1 to the above items. Note. Reconciliation to previous GAAP is not required.




What is the value of Total Assets

18)

The carrying value of an asset is N900,000 and the value in use is N750,000 while the fair value is N600,000. Calculate the impairment loss

19)

IFRS 3 (business combination) requires that the recognition of contingent consideration should be measured at date of acquisition using.

20)

What does IAS 41 stand for

21)

All the following standards are not applicable to SMEs except

22)

Fatima, a Nigerian publicly listed holding company has a reporting date of 31 December each year its financial statements include one year comparatives. Fatima currently applies local GAAP accounting rules, but is intending to apply IFRSs for the first time in its financial statements (including comparatives) for the year ending 31 December 2012. its summarized consolidated balance sheet (under local GAAP) at 1 January 2011 is;


 


                                                                N 000                        N 000


        Property, plant and equipment                                             2,000


        Goodwill                                                                            900


        Development cost                                                               800


                                                                                                3700


Current assets


        Stock                                                300


        Debtors                                             500


        Bank                                                 40


                                                                840


 


        Short term liabilities-creditors               (640)


        Net current assets                                                              200


                                                                                                3900


 


        Long term liabilities


        Restructuring provision                               (500)


        Deferred tax                                       (600)                         (1100)


                                                                                                2,800


        Issued share capital                                                            1000


        Retained earnings                                                               1800


                                                                                                2800


Additional information


 


(i)     Fatima depreciation policy for its Property, plant and equipment has been based on tax rules set by its government. If depreciation had been based on the most appropriate method under IFRS the carrying value of the property, plant and Equipment at 1 January 2011 would have been N1,600,000


 


(ii)    The development costs originate from an acquired subsidiary of Fatima they do not qualify for recognition under IFRS they have a tax base nil and the deferred tax related to those costs is N200,000


 


(iii)    The inventory has been valued at prime cost. Under IFRS it would include an additional N60,000 of overheads.


 


(iv)   The restructuring provision does not qualify for recognition under IFRS


 


(v)    Based on IFRS the deferred tax provision required at 1 January 2011 including the effects of the developing expenditure is N720,000


Required: Prepare a summarized Statement of Financial Position for Fatima at the date of transition to IFRS (1 January 2011) applying the requirements of IFRS 1 to the above items. Note. Reconciliation to previous GAAP is not required.




What is the value for retained earnings

23)

In accordance with IFRS 7 on financial instruments, financial assets are measured at either ……………………. or …………………….

24)

Which of the following is NOT a function of Financial Reporting Council of Nigeria?

25)

In accordance with Pension Reform Act 2014, what is the pension deductible from a staff with the following monthly salaries and allowances; basic N30,000, housing allowances N17,000, transport N 15,000 and others N11,000?

26)

The IAS equivalent of IPSAS27 is IAS_

27)

A Cedant, as contained in IFRS 4 (Insurance contracts) is a policy holder who is

28)

Fide plc acquired 75% of the shares in Tessy plc for N136,000 on 1 January 2011 when, Tessy plc, had retained earnings of N30,000. The market price of Tessy plc’s share before the date of acquisition was N1.60. Fide plc, values non-controlling interest at fair value, goodwill is not impaired.


The financial position of Tessy plc at 31, Dec, 2011 is as follows;


                                                         N’000


Property, plant and equipment                       100


Current assets                                      70


                                                          170


Ordinary share capital of N1.00 each       100


Retained earnings                                 50


Current liabilities                                   20


                                                          170


 


Calculate the amount of goodwill

29)

The two categories of Tax payers under IFRS are

30)

Filling of tax returns under IFRS introduced

31)

List the three classes of cash flow statements in accordance with IAS 7………………………

32)

The statement of cash flows is universally accepted and required under GAAP and IFRS specifically, IAS 7 encourages two methods of preparation referred to as

33)

All the following can give rise to deferred tax except

34)

When is an asset impaired?

35)

The two types of IPSAS are

36)

Information on financial performance of an entity is provided in an …………….. statement

37)

List two items that often arise as a result of the difference between accounting profit and taxable profit

38)

Which IFRS stands for Revenue from contracts with customers

39)

What does IPSAS 24 stand for 

40)

Which of the following is EXCLUDED from the four classes of financial assets?

41)

State the two methods of classifying expenses in accordance with the provision of IAS 1

42)

For an entity that applies IFRS 2 (Share-based payment) all cash settled share based payment transactions of the entity shall measures the goods or services acquired and liability incurred at;

43)

The Exams Success International date of transition to IFRS is in the year   2013. The result of the transactions in 2013 were as follows paid up share Capital of the company was #8,400,000, Turnover of the year was # 12,000,000, Gross  Profit was #3,600,000, Net Assets was # 24,000,000. Calculate the minimum Tax payable in year 2013 being the year of transition?

44)

According to IFRS 8 (operating segment is a component of an entity that does not engage in

45)

A Legal Liability which entails stewardship of resources is best known as

46)

Under the IAS 32, any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity is known as

47)

The IAS equivalent of IPSAS 2 is IAS…….

48)

IAS 41 on agriculture defined biological assets to include …………………. and ………………………..

49)

The carry amount of the total Assets of the Exams Success International as at 31st December 2013 was N12, 500, 000 and the Tax base of the Assets was N10, 500,000. If the Tax rate applicable was 30%. Calculate the deferred Tax applicable  

50)

Carrying amount less tax Base multiplied by applicable Tax rate is called


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