Question
Question 18. According to IPSAS 9 'Revenue from Exchange Transactions', which of the below conditions apply to the recognition of revenue for transactions involving the
Question 18. According to IPSAS 9 'Revenue from Exchange Transactions', which of the below conditions apply to the recognition of revenue for transactions involving the rendering of services?
The costs incurred for the transaction and the costs to complete the transaction can be measured reliably AND the amount of revenue can be measured reliably
The amount of revenue can be measured reliably AND the significant risks and rewards of ownership have been transferred to the buyer
The costs incurred for the transaction and the costs to complete the transaction can be measured reliably AND the significant risks and rewards of ownership have been transferred to the buyer
The significant risks and rewards of ownership have been transferred to the buyer AND the entity does not have effective control over the transaction
Question 19. Which of the following statements is true in regards to RPG 1 'Reporting on the long-term sustainability of an entitys finances'?
Provides mandatory requirements for an entity to report on the long-term sustainability of a public sector entitys finances.
Entities that elect to apply RPG 1 are required to also comply with RPG 2 and 3 in order to state IPSAS compliance.
The non-mandatory RPG 1 recognises that long-term fiscal sustainability information is broader in scope than information in financial statements, and focuses on the three dimensions of service, revenue and debt.
When an entity reports on its long-term fiscal sustainability, RPG 1 discusses two inter-related dimensions, by reference to their capacity and vulnerabilities, namely; capacity and demographics.
Question 22. In some instances it can be difficult to determine if a revenue transaction is non-exchange or exchange revenue. What shall a public sector entity do to determine the correct accounting treatment in cases of uncertainty (following IPSAS 23 'Revenue from Non-exchange Transactions')?
Treat the revenue as non-exchange when there are uncertainties
Examine the substance of the transaction to determine if it is exchange or non-exchange revenue
Treat the revenue as non-exchange when there are uncertainties and disclose in the notes the nature of the uncertainties
Treat the revenue as exchange revenue and disclose in the notes the nature of the uncertainties
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