Question 14. Which of the below is not a potential benefit from adopting accrual based IPSAS?

Brands that are purchased may be capitalised under IPSAS 31 Intangible assets is not a potential benefit from adopting accrual based IPSAS.

Strengthened transparency

Consistent and comparable financial information

Comprehensive cost information

Better understanding of the cash balance of the public sector entity

Question 13. What is the main accounting issue in IPSAS 32 'Service concession arrangements: grantor'?

How the grantor is to recognize revenue

Whether the grantor is to recognize a service concession liability

Whether the grantor should recognize a service concession asset

When the grantor is to recognize expenses under the service concession

Question 10. The initial correct treatment in consolidated accounts of exchange differences arising on a monetary item that forms part of a net investment in a foreign company, in accordance with IPSAS 4 'The Effects of Changes in Foreign Exchange Rates', is:

Translate at the closing rate with resulting gains and losses reported in surplus or deficit

Translate at the closing rate with resulting gains and losses reported in a separate component of net assets/equity

Translate at the rate of exchange ruling on the date of the transaction with resulting gains and losses reported in surplus or deficit

Translate at the rate of exchange ruling on the date of the transaction with resulting gains and losses reported in the statement of net assets/equity

Question 2. A school acquires an item of equipment that was not of a specialised nature. In accordance with IPSAS 13 'Leases' it is recognised as a finance lease, but there is no certainty that the school (as the lessee) will obtain ownership of the equipment by the end of the lease term. Depreciation of the equipment should be spread over:

The term of the lease

The useful life of the equipment

The shorter of the term of the lease or the useful life of the equipment

A period consistent with similar owned items of equipment