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Company A is listing bonds on the Irish Regulated debt exchange. The client has listed bonds on the LSE in the UK . The financial
Company A is listing bonds on the Irish Regulated debt exchange. The client has listed bonds on the LSE in the UKThe financial statements were reviewed by PwC UK No additional transaction review is required.
True
False
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If the client is a new IFRS Global or Cluster Priority Client or becomes one in the year an out of country financial statement review is required.
True
False
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An entity is likely to consider accounting policy information material if that information relates to material transactions, other events or conditions and relates to an area of significant judgements or assumptions in applying an accounting policy
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False
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The objective of IFRS S is to require an entity to disclose information about its climaterelated risks and opportunities that is useful to users of general purpose financial reports in making decisions relating to providing resources to the entity.
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False
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XYZ LLC has recorded provisions for which there are also reimbursement rights. Management would like to offset the provision cost and the reimbursement income in the SOCI, and the engagement team has found that IAS allows for offsetting, is this permitted under IAS
No this must be gross, as IAS overrides all other standards in requiring gross presentation.
Yes, IAS specifically says that if another IFRS permits offsetting then this presentation is permissable.
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Steel Manfacturer Joint Stock Company, manufacturers steel and generates revenue from sale of steel. In its commercial registration it states that its primary activitiy is the sale of steel. However, it also routinely generates income from shipping its products to customers through shipping charges that are a separate performance obligation. The by shipping services are material and presented as other income on the face of the SOCI. The engagement team has challenged management on this presentation, however management has noted that due to the the commercial registration document it cannot present the shipping income as revenue. Is this appropriate under IAS and IFRS
Yes, it is appropriate to present the shipping sales as "other income" as the commercial registration document says that revenue is sale of steel products only.
It depends
No the sale of the shipping services is also a revenue generating activitiy and income is derived from sales to customers, therefore this is in the scope of IFRS and should be presented as revenue on the face of the SOCI.
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Client ABC plc presents its SOCI by function as per IAS On the face of its Statement of Comprehensive income it also separately presents "Salaries". Is this clearly compliant with IAS
Yes, this is clearly compliant.
No entities should not generally mix nature and function
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Interest payable on loans and borrowings is the same as trade and payables and therefore can be presented in the same line item on the face of the SOFP?
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False
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FGH Plc has an asset which was impaired during the year. The asset was used in the production of widgets however had a major breakdown and management decided to write off the remaining carrying value. In the past, depreciation in relation to this asset was recorded in cost of sales. In the December financial statements, FGH Plc has presented the impairment below the operating profit line, as management believe the impairment is not operating in nature. Is this appropriate under the requirements of IAS
Yes, impairments are not operating in nature and therefore should be presented outside of operating profit.
Yes, impairments are noncash so can be excluded from operating profit on that basis
No in this case the impairment relates to an asset that was being used in the operating activities and therefore the impairment should be presented within operating profit.
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Client ABC plc offsets material income and expenses, and presents the net of these on the face of the SOCI, is this permissible under IAS
Yes
No
Only where permitted by other IFRSs
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In a longterm construction contract, the profit margins will be generally consistent from year to year irrespective of whether input or output method is used for estimating the stage of
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