1. In which one of following circumstance can "fair presentation" in accordance with IFRS be presumed?

Athe financial statements comply with IFRS

BIFRS has been appropriately applied with additional disclosures where necessary

CIFRS has been applied in so far that it does not conflict with local GAAP

Dthe financial statements provide relevant, reliable, comparable and understandable information

2. When reporting profit for a period, companies are required to ensure that income and expenses are correctly classified.

Which one of the following items will NOT be included in profit or loss for the period?

AInterest payable

BDividend paid to ordinary shareholders

CDepreciation charge for the year

DIncome tax expense

3.Whose needs are general purpose financial statements intended to meet?

AShareholders of incorporated entities

BThe general public

CUsers of financial statements

DRegulatory authorities

4. At what amount is a revalued asset included in the statement of financial position in accordance with IAS 16?

AFair value

BMarket value

CReplacement value

DRevalued amount

5.Which body develops International Financial Reporting Standards?

AIASB

BIFRS Foundation

CIFRS IC

DIFRS Advisory Council

6. A sole trader is $5,000 overdrawn at her bank.She receives $1,000 from a credit customer.

Which elements of the financial statements will change due to this transaction?

AAssets and liabilities only

BLiabilities only

CAssets only

DAssets, liabilities and equity

7. DT's final dividend for the year ended 31 October 2018 of $150,000 was declared on 1 February 2019 and paid on 1 April 2019.The financial statements were approved on 31 March 2019.

Which TWO of the following statements describe the correct treatment of the dividend in DT's financial statements?

(1)The payment settles an accrued liability in the statement of financial position as at 31 October 2018

(2)The dividend is shown as a deduction in the statement of profit or loss for the year ended 31 October 2019

(3)The dividend is shown as an accrued liability in the statement of financial position as at 31 October 2019

(4)The dividend is disclosed in the notes to the financial statements at 31 October 2018

(5)The dividend is presented in the statement of changes in equity for the year ended 31 October 2019

8.Which of these statements about limited liability companies is/are correct?

(1)A company might make a bonus (capitalisation) issue to raise funds for expansion

(2)Both realised and unrealised gains and losses are included in the statement of comprehensive income required by IAS 1Presentation of Financial Statements

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

9.According to IAS 2 "Inventories", which of the following costs should be included in valuing the inventories of a manufacturing company?

(1)Carriage inwards

(2)Carriage outwards

(3)Depreciation of factory plant

(4)General administrative overheads

A1 and 3 only

B1, 2 and 4

C2 and 3 only

D2, 3 and 4