Question 22. Public entity Y acquired a property in 20X0 for a cost of $10 million. Y has adopted the allowable alternative included within IPSAS 17 'Property, Plant & Equipment', and revalues all of its property annually. On 15 December 20X1 Y enters into a binding sale agreement and title to the property passes to Medical Inc. for cash consideration of $25 million. The consideration is payable in March 20X2. The carrying value of the property at 15 December 20X1 was 22 million.

What amount, calculated in accordance with IPSAS 17, should be reported in surplus/deficit for Y for the years ending 31 December 20X1 and 31 December 20X2 in respect of the disposal?

20X1 = Nil, 20X2 = $3 million

20X1 = $3 million, 20X2 = $12 million

20X1 = $3 million, 20X2 = $Nil

20X1 = $15 million, 20X2 = $Nil

Question 23. IPSAS 18 'Segment reporting' suggests that reportable segments should be identified by reference to:

A distinguishable activity or group of activities of an entity

Whether a particular segment structure reflects the basis on which the governing body and senior manager require financial information to enable them to assess the past performance of the entity in achieving its objectives

Whether a segment is meaningful for accountability and decision-making purposes

All of the above

Question 24. The Conceptual Framework for Financial Reporting states that the purpose of financial reporting is to provide information:

To management accountants for decision making

Support and enhance transparent financial reporting by governments and other public sector entities

Provide tax authorities with information to be used for tax assessment

All of the above

Question 25. Which of the following statements regarding intangible assets is NOT true?

Development expenditure that meets the qualifying criteria must be capitalized

Intangible assets can only be revalued if there is an active market for the asset

The useful economic life of intangible assets cannot exceed 10 years

Internally generated goodwill should not be recognized as an asset