International Accounting

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Flashcards	126
Language	English
Category	Micro-Economics
Level	University
Created / Updated	06.01.2020 / 08.01.2020
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An intangible asset is identifiable when :

It is separable

It has a cost

It can be amortized

It is considered as useful by a company

An intangible asset which has a finite life :

Has a limited period of benefit to the company

Has a decreasing value over time

The initial measure of an Intangible Asset :

Is measured at cost

Is measured at the benefits it provides a company

What IAS41 deals with?

Agriculture activities

Intangible Assets

Borrowing costs

What is NOT a biological asset?

Sheeps, pigs, …

Trees in a forest

Wheat

Minerals

The processing of grapes into wine is after harvest, so IAS 41 doesn’t deal with it

True

False

if fair value of a bio asset becomes measurable, entity'll measure it at its fair value estimated point-of-sale costs

Plus

Less

Fair value the amount for which an asset exchanged, between knowledgeable,

True

False

IAS 28 is accounting standard about

investments in financial instruments

investments in assets

investements in associates and joint ventures

investments in subsidiaries

What method investor should use when accounting its investments in associates?

cash method

equity method

asset method

associate method

Associate is entity over which investor has significant influence.

True

False

When entity holds over 15% of the voting power on an investee it is considered as associate

True

False

Use of the equity method should cease from date that significant influence ceases.

True

False

The currency in which financial statements are presented is called

the exchange currency

the functional currency

the presentation currency

How are the monetary items measured when they are translated using the exchange rate at date of transaction?

in terms of historical cost

at fair value

at present value

Exchange differences that arise on monetary items ... are recognised in the group of financial statements with?

a separate component of equity

a separate component of debt

at present value

At which time are assets and liabilities translated into a presentation currency

at the date of transactions

end of the period

beginning of the period

What is wrong: EPS allows comparing the financial performance …

over time of the same entity

of different entities

of different entities over time

What is wrong: EPS is presented in

consolidated statement if presented

seperate finacial statement but only than as "seperate EPS"

Always in the seperate financial statement

potential odinary shares are included in

the diluted EPS

The basic EPS

Not included in IAS 33

Diluted EPS includes only the potential ordinary shares that

increase the basic EPS

decrease the basic EPS

both answers are wrong

The weighted average number of ordinary shares can be lower than the total number of shares

True

False

The old definition of Fair Value didn´t specificate whether an entity bought or sold the asset?

True

False

What is an Exit Price?

Purchase Price

The price that would be received

Difference between purchase and sale price

None of the above

Which of the following things must an entity do on the day of fair value measurement ?

be able to estimate desirable price

be able to sell (transfer) the particular asset (liability)

be able to access its principal or most advantageous market

All of the above

If there is quoted price of an item, it´s possible to use it

Yes

Valuation techniques used to measure fair value shall...

MINIMIZE the use of inputs (unobservable and observable)

MAXIMIZE the use of inputs (unobservable and observable)

MINIMIZE the use of UNOBSERVABLE and MAXIMIZE the use of OBSERVABLE inputs

MAXIMIZE the use of UNOBSERVABLE and MINIMIZE the use of OBSERVABLE inputs

IFRS 3 apply for the acquisition of an asset or group of assets that is not a business

True

False

IFRS 3 apply for the acquisition of an asset or group of assets that is not a business

True

False

IAS12 doesn't prescribe the accounting treatment for income taxes & the tax consequences of:

Transactions of the current period

The future liquidation of the of assets and liabilities

Tax planning opportunities

If liquidation of carrying amounts will make future tax payments larger/ smaller..

IAS 12 generally requires a provision

IAS 12 generally requires a deferred tax liability (or deferred tax asset)

IAS 12 generally requires a contingent liability

None of the above

Deferred tax assets are the taxes recoverable, in future periods, in respect of:

Deductible temporary differences

Taxable temporary differences

Deferred tax does not relate to

Deductible temporary differences

Permanent differences

Taxable temporary differences

Unused tax credits/losses

If revenue is taxed in the period received, the tax base

is only nil if the revenue is recognised in the following period

is the amount received

is only nil if the revenue is recognised in the same period

is nil

Temporary differences arise:

When deferred tax is applied

When the carrying amount of an asset or liability differs from ist tax base

When deferred tax differs from current tax

The realisation of deferred tax assets depends on:

Accounting profits being available in the future

Taxable profits being available in the future

No increase in the rate of income tax

Current Tax = Taxable Profit or Loss x Tax Rate

True

False

A taxable temporary difference gives rise to:

Either deferred tax liability or deferred tax asset

Deferred tax asset

deferred tax liability

Differences arising from fair value adjustments are treated:

Differently depending on whether they arise on acquisition or otherwise

Seperately for deferred tax

The same as any other taxable and deductible differences

Which is not an exception from providing for deferred tax? Temporary difference arises from:

Initial recognition of goodwill

Revaluation of non-current assets

Both are not an exception

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International Accounting

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