Question
Question 19. Following IPSAS 24 'Presentation of Budget Information in Financial Statements', under which scenario is it allowed to add an additional comparative budget column
Question 19. Following IPSAS 24 'Presentation of Budget Information in Financial Statements', under which scenario is it allowed to add an additional comparative budget column in the primary financial statements?
It is never permitted
It is permitted when the budget and the financial statements are prepared on a comparable basis
It is only permitted under the Cash Basis IPSAS
It is permitted under any scenario as long as this is the preferred way of presenting the comparative budget information by the entity
Question 20. Which of the following statements about the recognition of exchange differences in respect of foreign currency transactions reported in an entity's functional currency is true according to IPSAS 4 'The effects of changes in foreign exchange rates'?
The exchange differences on settlement of monetary items should be recognized in surplus or deficit
The exchange difference on translation of a monetary item at a rate different from that used at initial recognition should be recognized in surplus or deficit
Any exchange difference on the translation of a monetary item at a rate different to that used at initial recognition should be recognized in other comprehensive income
A and B are both correct.
Question 21. In the absence of an IPSAS that specifically applies to a transaction, event or condition, management shall use judgment in developing and applying an accounting policy that results in information that is:
Relevant to the decision-making needs of users
Reflect the economic substance of transactions, other events and conditions, and not merely the legal form
Represent faithfully the financial position, financial performance, and cash flows of the entity
All of the above
Question 22. Which of the following criteria is not necessary for ensuring a successful change management when adopting accrual based IPSAS?
Only include professional accountants in the change management process with IPSAS knowledge
Ensuring accounting policy readiness
Ensuring that sufficient training has been carried out
All of the above are necessary for successful change management
Question 23. A government operates the national train system and is required to train and certify as competent its drivers of new high-speed trains by 30 September 20X0. At 31 December 20X0, 25 drivers had not been trained nor certificated. The training took place in February 20X1 at a cost of $2,000 per driver. The fines accruing at 31 December 20X0 for non-compliance were $10,000 per driver. What provision should be made in accordance with IPSAS 19 'Provisions, Contingent Liabilities and Contingent Assets' at 31 December 20X0?
$nil
$50,000
$250,000
$300,000
Question 24. Following IPSAS 24 'Presentation of budget information' all public sector entities, that are required to (or voluntarily) elect to publish their budget, are required to:
Provide a comparison of the budget amounts to the actual amounts arising resulting from the execution of the budget
Provide a reconciliation of actual amounts and budget amounts
Both A and B
None of the above
Question 25. IPSAS 1 'Presentation of Financial Statements' requires that an entity should determine whether or not to present current and non-current assets and current and non-current liabilities as separate classifications on the face of the statement of financial position. When an entity chooses not to make this classification, then:
The classification must be disclosed in the notes
Assets and liabilities should be presented broadly in line with their liquidity
Assets and liabilities should be presented in order of the magnitude of the current period balances
Assets and liabilities must be separated broadly into those related to operating, investment and financing purposes
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started