Q & A (ACCA CertIFR)

Mohammed Magdy
‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬
https://www.udemy.com/user/mohamed-magdy-
761/
 Q & A (ACCA CertIFR)

Question 1: Y Co. has issued 100 shares to its directors for services rendered during the year ended 31 Dec 20X5. The
value of the shares at the grand date 30th Nov 20X5 was $ 5 per share. At 31st Dec, 20X5, the shares were valued at $ 6
per share. The accounting entry for the issue of the shares would be:

1. Charge expense of $ 500, and increase accumulated reserves by $ 500

2. Charge expense of $ 600, and increase accumulated reserves by $ 600
3. Charge expense of $ 500, and increase equity by $ 500
4. Charge expense of $ 600, and increase equity by $ 600

The answer: 3

Question 2: Borrower Co has a policy of capitalizing interest costs on self-constructed assets in accordance with IAS 23
Borrowing costs.
During the Year it has the following sources of borrowings:

Average outstanding liability Interest costs

Medium Term bank debt $ 10,000,000 $ 900,000
50 year term debt $ 25,000,000 $ 2,000,000
Bank overdraft $ 5,000,000 $ 600,000

All the borrowings have been used to finance the production of qualifying assets but none relate to a specific
qualifying asset. What is the appropriate capitalization rate to apply to the qualifying assets?

1. Nil %
2. 8.29%
3. 8.75%
4. 10.0%

The answer: 3

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

2 https://www.udemy.com/user/mohamed-magdy-761/
Question 3: The Following information relates to Grass Co. for the years ended 31 Dec, 20X1 and 20X2:
20X1 20X2
Profit before tax 24,000 18,000
Trade Receivables 135,000 129,000
Trade Payables 112,000 101,000
Inventory 76,000 67,000
Income Tax Paid 8,000 4,500

What is Grass Co’s net cash from operating activities for the year ended 31st Dec, 20X2?

1. 22,000
2. 9,500
3. 17,500
4. 20,000

The answer: 3

Question 4: In Accordance with IAS 37 provisions, contingent liabilities and contingent Assets, in which of the
following circumstances should an expense for $ 450,000 be recognized?

1. For damages in a lawsuit that the reporting company has a 75% chance of losing. The damages claim is for $
600,000.
2. For the expected cost to dismantle an oil platform as required by law. The cost is $ 700,000, which has a
present value of $ 450,000.
3. For the $ 450,000 cost to make good land contaminated as a result of past years’ operations. A law requiring
the clear up is virtually certain to be enacted.
4. For the $ 450,000 cost of fitting fire safety equipment to comply with a law coming into effect in the next
financial year.

The answer: 3

Question 5: Identify which of the following statements is false:

1. Under IAS 36 an entity must perform an impairment review for all its assets every 3 years.
2. Goodwill should be reviewed for impairment annually.
3. Under IAS 16 the useful economic life of an asset must be reviewed annually.
4. Brands that are purchased may be capitalized under IAS 38.

The answer: 1

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

3 https://www.udemy.com/user/mohamed-magdy-761/
Question 6: In accordance with IAS 20 Accounting for government grants and disclosure of government assistance,
how are grants related to assets recognized?

1. In the statement of profit or loss for the period they are due to be received.
2. In the statement of financial position as deferred income.
3. In the statement of financial position as a deduction from the carrying amount of the relevant asset.
4. In the statement of financial position as deferred income OR as deduction from the carrying amount of the
relevant asset.

The answer: 2

Question 7: What is the Status of an IFRIC?

1. It has the same status as a standard.

2. It must only be complied with if there is no standard on the subject.
3. Compliance with an IFRIC is optional.
4. It must only be complied with if there is a standard on the subject.

The answer: 2

Question 8: Which of the following statements are correct if an entity reports in the currency of a hyperinflationary
economy?

A. The financial statements should be restated into current measuring units.

B. The gain or loss on the net monetary position should be included in the comprehensive income, not in the
profit/loss for the year.
C. A general price index should be applied to non-monetary items.

1. A, B and C.
2. A and B only.
3. B and C only.
4. A and C only.

The Answer: 4

Question 9: Maple Co. is a public limited Company which operates in the UK. The majority of its business is carried out
in Europe and its revenue is in Euros. Most of its raw materials are purchased from Hong Kong where the currency is
the Hong Kong Dollar. The company invoices its customers in Euros and insists on payment in Euros. Maple Co also has
a subsidiary in Hong Kong.

What Currency should the financial statements be presented in?

1. Euros.
2. UK Sterling.
3. Hong Kong Dollars.
4. Any Currency chosen by Maple Co.

The Answer: 1

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

4 https://www.udemy.com/user/mohamed-magdy-761/
Question 10: Below are a number of statements relating to IFRS 5 non-current Assets Held for sale and discontinued
operations. Which one of these statements is true?

1. The main objective of IFRS 5 is to specify the disclosure requirements of non-current assets held for sale.
2. IFRS 5 only applies to those reporting entities whose securities are listed on an international stock exchange.
3. The IFRS 5 definition of a discontinued operation cannot be met unless the operations were previously
disclosed as a separate business segment under IFRS 8.
4. IFRS 5 classifies a discontinued operation as a component of an entity that has been disposed of
or is classified as held for sale.

The Answer: 4

Question 11: Ginger Co's financial year end is 30 June. Its financial statements were approved and issued on 15
August. The following occurred:
A. On 10 July, inventory was sold for less than its year end carrying amount due to flood damage. The flood
occurred on 29 June.
B. On 31 July, a Court case was settled for a lower value than the amount provided for in the year-end
financial statements.
C. On 20 August, Ginger Co learned that a customer had brought a court case against it and was claiming
damages relating to an issue that arose in May. Which of these material events should be adjusted for in
the financial statements for the year ended 30 June?
1. A and B only
2. A, B and C
3. B and C only
4. A and C only
The Answer: 1

Question 12: Emily Co chooses to revalue property in accordance with IAS 16. On 31 December 20X1, its head
office building had a fair value of $30m when it is measured in the financial statements at historical cost of $25m
with $4.5m of accumulated depreciation charged against it. Which of the following statements is true?
1. A revaluation gain of $5m should be recorded through other comprehensive income, grouped with other
items that will not subsequently be reclassified to profit or loss
2. A revaluation gain of $5m should be recorded through profit or loss
3. A revaluation gain of $9.5m should be recorded through other comprehensive income, grouped with other
items that will not subsequently be reclassified to profit or loss
4. A revaluation gain of $9.5m should be recorded through profit or loss
The Answer: 3

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

5 https://www.udemy.com/user/mohamed-magdy-761/
Question 14: According to IFRS 3 Business Combinations, how should a subsidiary be accounted for in the
consolidated financial statements?
1. The acquisition method
2. The equity method
3. Proportionate consolidation
4. The pool of interests’ method
The Answer: 1

Question 15: Which of the following concepts may be the reason why a company chooses not to capitalize small
items of equipment held for continuing use in the business, rather than capitalizing them?
1. Completeness and materiality
2. Faithful representation and understandability
3. Accruals and relevance
4. Materiality and comparability
The Answer: 4

Question 16: Lollipop Co held a cash generating unit at $850,000. There was evidence of impairment at the year
end and so Lollipop Co determined that the cash generating unit's fair value was $900,000, but to sell the unit,
Lollipop Co would incur costs of $75,000. The discounted present value of the future cash flows of the cash
generating unit was $775,000. What impairment should Lollipop Co recognize in its statement of profit or loss in
relation to the cash generating unit?
1. $25,000
2. $nil
3. $75,000
4. $100,000
The Answer: 1

Question 17: Three years ago Corcoran Bakery Company recognized a brand “Tubby cake” as intangible assets
at its acquisition cost of $50,000. In accordance with IAS 38. The brand was determined to have a useful life of 10
years. Two years after acquisition the brand was valued by a brad valuation agency at $64,000. One year later
after negative press coverage of tubby cakes products the brand fair value fell to $25,000 which of the following is
recognized in year 3?
1. An impairment loss in profit or loss of 7000$
2. A downwards revaluation in other comprehensive income of 31,000$
3. An impairment loss in profit or loss of 10,000$
4. An impairment loss in profit or loss of 15,000$

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

6 https://www.udemy.com/user/mohamed-magdy-761/
 The Answer: 1

Question 18: An associate is a company over which:

1. The parent has control; it should therefore be fully consolidated
2. The parent has significant influence; it should be fully consolidated
3. The parent has significant influence; it should be equity accounted for in the group accounts
4. The parent has significant influence; it should be treated as a simple investment in the group accounts
The Answer: 3

Question 19: On 31 Dec, 2014, Merigo Co sold goods to a customer for $ 10 million, representing a mark-up on cost of
25%; in order to encourage sales, Merigo Co has given the customer interest free credit with the total amount
becoming payable in three years time. Interest rates are currently 4% per annum, meaning that the present value of $
10 million is $ 8.9 million and the present value of $ 8 million is $ 7.1 million.

What amount should Merigo Co record as revenue in the statement of profit or loss for the year ended 31 December
2014?

1. $ 10 million
2. $ 8 million
3. $ 8.9 million
4. $ 7.1 million
The Answer: 1

Question 20: Emily Co chooses to revalue property in accordance with IAS 16. On 31 December 20X1, its head
office building had a fair value of $30m when it is measured in the financial statements at historical cost of $25m
with $4.5m of accumulated depreciation charged against it. Which of the following statements is true?
1. A revaluation gain of $5m should be recorded through other comprehensive income, grouped with other
items that will not subsequently be reclassified to profit or loss
2. A revaluation gain of $5m should be recorded through profit or loss
3. A revaluation gain of $9.5m should be recorded through other comprehensive income, grouped with other
items that will not subsequently be reclassified to profit or loss
4. A revaluation gain of $9.5m should be recorded through profit or loss
The Answer: 3

Question 21: Enterprise Co is heavily involved in developing a new production process. In the year to 31 March
20X1 the amount of expenditure incurred on development costs could be analyzed as follows:

Euro €

1 April 20X0 to 30 September 20X0 18,400

1 October 20X0 to 31 March 20X1 6,500

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

7 https://www.udemy.com/user/mohamed-magdy-761/
 24,900

On 1 October 20X0 Enterprise Co demonstrated that the production process met the recognition criteria of IAS 38
Intangible Assets. The amount estimated to be recoverable from the process is €21,000.
At what amount should the production process be recognized as an intangible asset at 31 March 20X1 in
accordance with IAS 38?
1. €6,500
2. €18,400
3. €21,000
4. €24,900
The Answer: 3

Question 22: Festival Co values its inventory using the average cost method. At the beginning of January it held
110 units of inventory which cost $5 each. The following inventory movements took place during January: 3
January Sold 95 units for $6 each 12 January Purchased 100 units for $5.50 each 15 January Purchased 50 units
for $5.75 each 20 January Sold 80 units for $6 each At what amount should inventory be included in Festival Co's
statement of financial position at 31 January?
1. $442.42
2. $453.90
3. $480.00
4. $470.08
The Answer: 4

Question 23: In accordance with IFRS 11 Joint Arrangements, which of the following statements is false?
1. A joint venture can be accounted using either equity accounting or proportionate consolidation in the
consolidated financial statements
2. Investors A Co, B Co, C Co and D Co each hold 25% of Pilot Co. The shareholder agreement specifies
that, for a decision to be passed, 75% of the voting rights must consent. It does not stipulate which parties
must agree. A Co, B Co, C Co and D Co have joint control
3. A joint operator accounts for its share of assets, liabilities, income and expenses of a joint operation in
accordance with the relevant IFRS
4. A joint arrangement that is not in substance a separate entity must be accounted for as a joint operation
The Answer: 1

Question 24: Lord Co is jointly controlled by Ms Smith and Mr Jones. The directors of the company are Ms
Smith, Mr Jones and Miss Hatchett. Which one of the following transactions entered into by Lord Co must IAS 24
disclosures in respect of related parties be provided for?
1. The transfer of goods at market prices by Lord Co to another entity controlled by Ms Smith.
2. The provision of services at no cost by Lord Co to a government department.
3. The purchase of goods from a supplier that provides more than 50% of Lord Co's raw materials.
4. The sale of goods to another company that Miss Hatchett is a director of.
The Answer: 1

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

8 https://www.udemy.com/user/mohamed-magdy-761/
Question 25: The Conceptual Framework for Financial Reporting defines the elements of the financial
statements. Which of the following statements is true?
1. A liability exists when a transfer of economic resource is certain
2. The definition of an asset centers on the concept of ownership.
3. An expense is an increase in an asset or a decrease in a liability.
4. The Conceptual Framework defines equity as a residual.
The Answer: 1

Question 26: Which one of the following does not meet the definition of investment property included within IAS
40?
1. Land currently held for an undetermined use
2. A building owned by and leased out under an operating lease
3. A building that is vacant but is held to be leased out
4. Accommodation that is rented to staff members
The Answer: 4

Question 27: Which of the following is identified by the 'Conceptual Framework for Financial Reporting'
as an underlying assumption for the preparation of financial statements?
1. Going concern
2. Fair presentation
3. Relevance
4. Consistency

The Answer: 1

Question 28: The following material events occurred after the reporting date but before the financial statements
were authorized for issue. According to IAS 10 Events after the Reporting Period, which of these would be classed
as an adjusting event?

1. The disposal of a subsidiary

2. Change of foreign exchange rates
3. Destruction of inventory in a warehouse fire but not affecting the going concern status
4. Bankruptcy of a customer with a balance outstanding at the year end

The Answer: 4

Question 29: According to IFRS 15 "Revenue from contracts with customers", revenue from the sale of goods should
be recognized when:

A. Goods or services have been transferred to customers.

B. The entity expects to be entitled to consideration for the goods or services transferred to customers.
C. It is possible that the economic benefits associated with the transaction will flow to the enterprise.

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

9 https://www.udemy.com/user/mohamed-magdy-761/
 D. The costs incurred or to be incurred in respect of the transaction are known with absolute certainty.
1. B & D only.
2. A & D only.
3. C & D only.
4. A & B only. I and ii

The Answer: 4

Question 30: Which of the following statements is correct?

1. IAS 16 ‘Property, plant & Equipment’ forbids the capitalization of any subsequent expenditure on an asset.
2. IAS 36 ‘Impairment of Assets’ applies to all assets including inventories and receivables.
3. IAS 20 ‘Accounting for Government Grants and Disclosure of government assistance’ allows grants related to
assets to be presented in the statement of financial position as deferred income or as a deduction from the
cost of the related assets.
4. IAS 17 ‘leases’ introduces a 90% numerical threshold to provide guidance on the substantial transfer of risks
and rewards in respect of finance leases.

The Answer: 3

Question 31: Molde SA acquires 95% of the issued share capital of Balcke SA on 30 June 20x1 by way of a
share for share exchange.
The Profits before tax of the two companies for the year ended 31 December, 20x1 are:
Molde SA 200,000
Blacke SA 150,000

What is the profit before tax that would be shown in the consolidated statement of profit or loss of Molde SA
for the year ended 31 December 20x1, in accordance with IFRS 3 ‘Business Combinations’?
1. 271,250
2. 275,000
3. 342,500
4. 350,000

The Answer: 1

Question 32: Jones SA, manufactures a range of products. At 31 December 20x0 it has been notified of the
following claims:

- It faces 100 claims in respect of product Alpha. The company’s past experience indicates that 30% of
the claims will be successfully defended. 70% will probably need settlement and rectification at a cost
of $ 100,000 per unit.
- It also faces a single legal claim for product Beta. The company’s legal advisers have indicated that the
claim has a 30% likelihood of success and a 70% likelihood of failure. The cost of failure would be
$1,000,000.

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

10 https://www.udemy.com/user/mohamed-magdy-761/
 Under IAS 37 ‘Provisions, contingent Liabilities and contingent Assets’ what provisions. If any, should be
made in the financial statements/

1. Nill
2. 7,700,000
3. 8,000,000
4. 11,000,000

Question 33: Which of the following statements is true?

A. Where preferences shares are classified as a liability, the associated dividends should be accounted for
through other comprehensive income.
B. Redeem able preferences shares should be classified as a liability.
C. If an entity issues convertible bonds, these should be treated as a liability under IAS 32.
D. Under IAS 32 cumulative irredeemable preferences shares should be classified in equity on the statement
of financial position.
1. B & D only.
2. A, C & D only.
3. B only.
4. None of the above.
The Answer: 1

Question 34: What is the role of the IFRS Advisory Council?

1. To provide the IASB on its agenda and work programme.

2. To monitor companies’ compliance with IFRS.
3. To provide guidance on financial reporting issues not addressed directly by IFRS.
4. To appoint the members of the IASB

The Answer: 3

Question 35: In accordance with IFRS 11 Joint Arrangements, which of the following statements is false?

1. A joint venture can be accounted using either equity accounting or proportionate consolidation in the
consolidated financial statements
2. Investors A Co, B Co, C Co and D Co each hold 25% of Pilot Co. The shareholder agreement specifies that,
for a decision to be passed, 75% of the voting rights must consent. It does not stipulate which parties must
agree. A Co, B Co, C Co and D Co have joint control
3. A joint operator accounts for its share of assets, liabilities, income and expenses of a joint operation in
accordance with the relevant IFRS
4. A joint arrangement that is not in substance a separate entity must be accounted for as a joint operation.

The Answer: 2

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

11 https://www.udemy.com/user/mohamed-magdy-761/
 Question 36: Which of the following practices is not allowed by International Financial Reporting Standards?

1. Use of the closing exchange rate for the translation of the statement of profit or loss of a foreign
subsidiary.
2. Accounting for incorporated joint ventures using the equity method.
3. Accounting for changes in accounting policy by restating comparatives and adjusting the prior year
opening retained earnings.
4. Recognizing actuarial gains and losses in other comprehensive income.

The Answer: 1

Question 37: Gain Co acquired a property in 20X0 for a cost of $10 million. Gain Co revalues all of its property
annually in accordance with IAS 16 Property, Plant & Equipment. On 15 December 20X1 Gain Co entered into a
binding sale agreement and title to the property passed to Gloss Co for $25 million cash. The consideration is
payable in March 20X2. The carrying amount of the property at 15 December 20X1 was £22 million. In
accordance with IAS 16, what profit should be reported in profit or loss for Gain Co for the years ending 31
December 20X1 and 31 December 20X2 in respect of the disposal?

1. 20X1 = Nil, 20X2 = $3 million

2. 20X1 = $3 million, 20X2 = $12 million
3. 20X1 = $3 million, 20X2 = $Nil
4. 20X1 = $15 million, 20X2 = $Nil

The Answer: 3

The sale was complete on 15th of December 20X1 because there is a binding agreement and the
title was passed , so the gain to be recognized is ( sale value 25 million less carrying value of 22
million ). In 20X2 no gain will be recognize

Question 38: Which of the following criteria does not have to be met in order for an operation to be classified
as discontinued under IFRS 5?

1. The operation represents a separate line of business or geographical area

2. The operation is part of a single plan to dispose of a separate major line of business or
geographical area
3. The operation is a subsidiary acquired exclusively with a view to resale
4. The operation is expected to be sold within six months of the year end

The Answer: 4

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

12 https://www.udemy.com/user/mohamed-magdy-761/
 Question 39: IAS 28 ‘Investment in Associates and joint Ventures’ states that in the separate financial
statements (not the consolidated financial statements) of an investor, an investment in an associate should
be:

1. Held at cost or in accordance with IFRS 9.

2. Valued using the equity method of accounting.
3. Held at fair value only.
4. Accounted for using proportionate consolidation.

The Answer: 2

Question 40: Mountain plcs statement of cash flows shows a net increase in cash and cash equivalents of 453,000.
This did not match to the actual movement, and it was discovered that the following had not been adjusted for in the
statement of cash flows:

- Depreciation of 52,000
- Profit on the sale of non-current assets of 89,000
- Purchase of non-current assets for 130,000

After these items are adjusted for, what should the net cash flow of mountain plc be?

1. 323,000
2. 464,000
3. 724,000
4. 286,000

The Answer: 2

Question 41: X Co has issued 1000 ordinary shares to the shareholders of Y Co in order to acquire the whole of share
capital of Y Co. Which of the following is applicable to this transaction?

1. IFRS 2 Share - Based Payment

2. IFRS 3 Business Combinations
3. IFRS 9 Financial Instruments
4. IAS 28 Investments in Associates and Joint Venture

The Answer: 2

Question 42: IAS 24 "related party disclosure" require disclosure of transactions between related parties which of the
following transactions should be disclosed?

1. Intra group transactions in consolidated financial statements.

2. Transactions between two companies with a common director.
3. Transactions between states controlled companies.
4. Transactions between a holding company and its associate.

The Answer: 4

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

13 https://www.udemy.com/user/mohamed-magdy-761/
Question 43: Enterprise Co has incurred the following expenditure prior to the commercial production of a new
product.

Marketing campaign € 30,000

payment to product inventor € 15,000

Staff training in production techniques € 10,500

1. Nil
2. € 15,000
3. € 25,500
4. € 55,500
The Answer: 2

Question 44: when developing and applying an accounting policy where no IFRS specifically deals with the
transaction, what should a company do?

1. Not account for the transaction, as no guidance is available.

2. Refer to guidance in IFRSs dealing with similar transactions.
3. Treat the transaction in the most prudent way.
4. Record the transaction using a suspense account.

The answer: 2

Question 45: Bubble Co leased a machine from Balloon Co for 5 years commencing on 1 January 20X1. Bubble
Co is required to make annual payments of $500, however as an incentive, Balloon Co has provided an initial six
month rent free period. Balloon Co classifies the lease as an operating lease. What lease income should Balloon
Co recognize in the year ended 31 December 20X1?

1. $500
2. $450
3. $250
4. $600

The answer: 2

Question 46: impairment of an asset, as determined by IAS 36 'impairment of assets', will have taken place in
which of the following circumstances:

1. Recoverable amount is higher than existing carrying amount.

2. Recoverable amount is lower than existing carrying amount.
3. Value in use is higher than net realizable value.
4. Value in use is lower than net realizable value.

The answer: 2

Question 47: X a subsidiary of a public limited company, has issued share options to its directors for services rendered
in the year to 31 December 20x5. The transaction will be accounted for under which standard?

1. IFRS 2 Share - Based Payment

2. IFRS 3 Business Combinations
3. IFRS 9 Financial Instruments

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

14 https://www.udemy.com/user/mohamed-magdy-761/
 4. IAS 28 Investments in Associates and Joint Venture

The Answer: 1

Question 48: IAS 29 "financial reporting in hyperinflationary economics applies to the financial statements of any
company that reports in the currency of a hyperinflationary economy. The standard does not establish an absolute
rate at which hyperinflation is deemed to occur. However, the standard gives an indication of the economic
characteristics which indicate hyperinflation. Which of the following characteristics might indicate a hyperinflationary
economy according to IAS29?

1. Cumulative inflation rate over 3 years is approaching or exceeding 100%.

2. An annual average inflation rate for the last 3 years of 20% or more.
3. Interest rates of over 25% at the company year-end.
4. A devaluation of the currency by 20% or more.

The Answer: 1

Question 49: An entity purchases a haulage company for $50,000 on 1 January 20X0. The operation consists of an
operating license with a fair value of $10,000 and 5 wagons each with a fair value of $6000. On 5 January 20X0, one of
the wagons crashed and the insurance company refused to settle any liability due to the non-disclosure of certain
material facts. The wagon was a write-off. The adverse publicity and operating capacity reduction reduced the
recoverable amount of the business to $25,000. This amount includes the operating license which had a fair value less
costs to sell of $9,500.

What is the carrying amount of the assets after accounting for the impairment losses under IAS 36 Impairment of
Assets?
1. Goodwill = NIL, License = NIL & Wagons = $25,000
2. Goodwill=NIL, License = $9,500 & Wagons = $15,500
3. Goodwill=$10,000, License = $9,500 & Wagons = $5,500
4. Goodwill=$5,000, License = $5,000 & Wagons = $15,000

The Answer: 2

Question 50: According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following
should be provided for in the financial statements?

1. Material contingent gains.

2. Future operating losses.
3. Costs of an expected future restructuring of a company.
4. Onerous contracts.

The Answer: 4

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

15 https://www.udemy.com/user/mohamed-magdy-761/
Question 51: Cash flows arising from interest or dividends either paid or received should be classified under which
cash flow heading according to IAS 7 Statement of Cash Flows?

1. Operating activities
2. Financing activities
3. Investing activities
4. Any of the above three classifications depending upon the nature of the business

The Answer: 4

Question 1. Lewis Co recently suffered a burglary and goods to the value of £450,000 were
stolen. Management of the company has filed a claim for this amount with the insurance
company, which has confirmed that Lewis Co will receive compensation. How should this be
treated in the financial statements?
a. Recognise a receivable for the full £450,000 in the statement of financial position
b. Do not recognise in the statement of financial position but disclose narrative
details of the claim.
c. Do not recognise in the statement of financial position but disclose both narrative
and the figure expected to be reimbursed.
d. No disclosure or recognition required
Answer : c :

Question 5 Ignoring bearer biological assets, how does IAS 41 Agriculture require the initial
measurement of biological assets?
a. The lower of cost and net realisable value
b. Fair value less costs to sell
c. Cost
d. Fair value
Answer c

Question 11. On 15 December 20X0, the directors of Restless Co formally minuted their
decision to dispose of the entity's 60% controlled subsidiary Loser Co. No public announcement
has been made nor have the shares been formally put on sale. The disposal is expected to be
completed in the second quarter of 20X1. How should Restless Co account for Loser Co in the
financial statements for the year ended 31 December 20X0, in accordance with IFRS 10
Consolidated financial statements?
a) Loser Co will be excluded from consolidation because control is expected to be
temporary

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

16 https://www.udemy.com/user/mohamed-magdy-761/
 b) Loser Co will continue to be consolidated within the group financial statements
c) The expected gain or loss on disposal will be included in the statement of profit or loss
and the estimated net proceeds will be included at net realisable value within current
assets
d) Loser Co will not be consolidated and instead be measured at the equity value on 15
December 20X0.
Answer: b

Question12. Provence Co, a multi-national organisation, wishes to follow a policy of revaluation

of certain non-current assets. Which of the following assets could it revalue in accordance with
IAS 16?
a) Ignoring any other assets within the same class, an individual asset that in management's
opinion has a fair value that is materially different from its carrying amount
b) All assets within a single country on a country by country basis
c) All assets which have not been revalued within the past 5 years
d) All assets within a single broad class such as land and buildings
Answer d

Question 13. X Co has issued share options to its directors for services rendered in the year to 31
December 20X5. Which of the following standards is relevant to this transaction?
a. IFRS 2 Share-Based Payment
b. IFRS 3 Business Combinations
c. IFRS 9 Financial Instruments
d. IAS 27 Separate Financial Statements
Answer a

Question 14. Risotto Co. purchased a quantity of inventory, incurring the following total costs:
Based cost 230,000 $
Irrecoverable sales tax 46,000 $
Shipping 22,000 $
Storage 15,000 $
Administration costs 9,000 $
Total cost 322,000
What amount should Risotto Co include in the statement of financial position for the batch of
inventory?
a) $307,000
b) $322,000

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

17 https://www.udemy.com/user/mohamed-magdy-761/
c) $298,000
d) $276,000
Answer c

Question 15 According to IFRS 15 Revenue from contracts with customers, revenue from the
sale of goods should be recognised at a single point in time when:
(i) Goods or services have been transferred to customers
(ii) the entity is entitled to consideration for the goods or services transferred to customers
(iii) It is possible that the economic benefits associated with the transaction will flow to the entity
(iv) The costs incurred or to be incurred in respect of the transaction are known with absolute
certainty
a) (ii) and (iv)
b) (i) and (iv)
c) (iii) and (iv)
d) (i) and (ii)
Answer: d

Question 16. According to IAS 7 Statement of cash flows where can interest paid be classified
in the cash flow statement?
a) Financing activities
b) Investing activities
c) Operating activities
d) Financing or operating activities
Answer: d

Question 17 which items to be included in the comprehensive income?

1 Property revaluation gains
2 Dividends
3 Foreign exchange translation differences
4 Issue of share capital
a) 1and 2
b) 1 and 3
c) 2 and 4
d) 2 and 3
Answer: b

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

18 https://www.udemy.com/user/mohamed-magdy-761/
Question 18. IFRS 8 Operating Segments states that operating segments are reportable if they
comprise at least what percentage of total revenue, total result or total assets?
a. 5%
b. 10%
c. 20%
d. 25%
Answer: b

Question 19. Which of the following should be accounted for as subsidiaries in the consolidated
financial statements of Seabass Co?
1. Seabass Co owns 45% of Cod Co, but has a majority of seats on the Board which gives
Seabass Co power over Cod Co
2. Seabass Co owns 60% of Haddock Co, and has 49% of the voting rights. The remaining 51%
of the voting rights are controlled by a single shareholder.
3. Seabass Co owns 80% of the preference share capital of Sole Co which carry no voting rights

a) Cod Co, Haddock Co and Sole Co

b) Haddock Co and Sole Co only
c) Cod Co only
d) Haddock Co only
Answer c

Question 20. Syrup Co, which reports in $, sells goods to a UK company for £200,000 on 1
November 20X0 when the exchange rate is $1.40: £1. At the year end of 31 December 20X0,
half of the goods remain in stock and none of the amount owed has been received; the exchange
rate at this date is $1.25:$1.
What amount does Syrup Co report in profit or loss as an exchange gain or loss in the year
ended 31 December 20X0?
a) Loss of $15,000
b) Loss of $30,000
c) Gain of $30,000
d) Gain of $15,000
Answer a
Syrup co should recognize half of the revenue because only half of the goods are shipped.
Revenue will be recognized as 100,000*1.4 = $ 140,000 . loss on receivables will be 100,000(
1.4 – 1.25 ) = 15000 $

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

19 https://www.udemy.com/user/mohamed-magdy-761/
Question 24. When developing and applying an accounting policy where no IFRS specifically
deals with the transaction, what should a company do?
a) Not account for the transaction, as no guidance is available
b) Refer to guidance in IFRSs dealing with similar transactions
c) Refer to the going concern concept in the Conceptual Framework of Financial Reporting
d) Record the transaction using a suspense account
Answer b

Question 25. Samuel Co acquires control of Delilah Co and under IFRS 3 must recognise all of
the identifiable assets acquired. Which of the following will NOT be recognised separately, but
instead will form part of the overall goodwill recognised in the group accounts of Samuel Co?
a) The Strawberrylicious brand name not previously recognised by Delilah Co
b) A patent for the process used to produce Strawberrylicious, not previously recognised by
Delilah Co
c) Internally generated goodwill for the business. This was not previously recognised by Delilah Co
d) A licensed customer list. Delilah Co had not previously been able to recognise the list as
an asset

Answer : c : because internally generated goodwill is not separately identifiable and will form
part of verall goodwill

Question 1. An entity acquires an item of equipment that is not of a specialised nature by way of a lease. 1n
accordance with IFRS 16 Leases a right of use asset is recognised. There is no certainty that the entity (as the lessee)
will obtain ownership of the equipment by the end of the lease term.

Depreciation of the equipment should be spread over:

A. The term of the lease

B. The useful life of the equipment
C. The shorter of the term of the lease or the useful life of the equipment
D. A period consistent with similar owned items of equipment Q c

Question 3. According to the lASB Conceptual franrework for Financial Reporting. which of the following meets the
definition of an asset

A. $10,000 spent to develop a list of customers and their purchase preferences

B. $25.000 invested in loan stock or’ another company
C. $19.000 spent to repair damage to the roof of a building after a storm
D. $22.000 spent on an advertising campaign to launch a new product

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

20 https://www.udemy.com/user/mohamed-magdy-761/
Question 5. A farm acquires lumber trees for $250,000 on 1 March 20X7, which represents their fair value. The fair
value of the trees at the reporting date 31 December 20X7 is $280,000. The trees will be grown for 5 years and then
felled and sold. Costs to sell are 5% of fair value‘ Which of the following statements is true?

A. The trees are initially measured at $250,000

B. The trees are measured at $208,333 at 31 December 20X7
C. The trees are measured at $280,000 at 31 December 20X7
D. The Uees are measured at $266,000 at 31 December 20X7

Question 6. Provence Co, a multi-national organisation, wishes to follow a policy of revaluation of certain non current
assets. Which of the following assets could it revalue in accordance with lAS 16?

A. Ignoring ankother assets within the same class, an individual asset that in management's opinion has a fair
value that is materially different from its carrying amount
B. All assets within a single country on a country by country basis
C. All assets which have not been revalued within the past 5 years
D. All assets within a single broad class such as land and buildings

Question 7. According to lFRS l2 lncomeTaxes, where the tax base of an asset exceeds its canying amotmr in the
statement of financial position. what term describes t.he difference?

A. A taxable temporary difference

B. A deferred tax asset
C. A deductible temporary difference
D. A deferred tax liability E

Question 7. Which of the folloing statements is correct?

A. US Standards are considered to be more principlesbased than IFRS Standards

B. An unlisted UK company that does not apply IFRS Standards must apply FRS 101 and FRS 102
C. There are no differences &tween IAS 1 Presentation of Financial Statements and its US equivalent standard
D. IFRS 15 Revenue from Contracts with Customers is an example of a recent IFRS Standard that that the IASB
and FASB have developed jointly

Question 10. Which of the following statements are correct if an entity reports in the currency of a hyperinflationary
economy?

1. The financial statements should be restated into current measuring units

2. The gain or loss on the net monetary position should be included in comprehensive income, not in the profit/loss
for the year

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

21 https://www.udemy.com/user/mohamed-magdy-761/
3. A general price index should be applied to non-monetary items

A. 1,2and3
B. 1 and 2 only
C. 2 and 3 only
D. 1 and 3 only

Question 11. An associate is a company over which

A. the parent has control; it should therefore be fully consolidated

B. the parent has significant influence; it should be fully consolidated
C. the parent has significant influence; it should be equity accounted for in the group accounts
D. the parent has significant influence; it should be treated as a simple investment in the group accounts

Question 13. Under IAS 19 Employee Benefits, which of the following statements is true in relation to accounting for
pension schemes?

A. Rerneasurements of a defined benefit scheme should be recognised immediately in profit or loss

B. Remeasurements of a defined benefit scheme should be defen'ed and spread over the average remaining
working life of employees using the corridor approach
C. Employer contributions to a defined contribution scheme are recognised as an expense in profit or loss
D. Employer contributions to a defined contribution scheme increase the fair value of the pension asset in the
statement of financial position.

Question 14. Which one of the following statements is correct according to IFRS 3 Business Combinations?

A. The acquisition date in a business combination is the date on which the acquirer transfers purchase
consideration.
B. On consolidation, contingent liabilities of the subsidiary (which have previously only been disclosed in the
notes to the financial statements) are recognised at their fair value
C. Contingent consideration should not be included in the calculation of goodwill –
D. Negative goodwill is recognised in the statement of financial posidon as a negative asset.

Question 15. In accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance,
how are grants related to assets recognised?

A. In the statement of profit or loss for the period they are due to be received
B. In the statement of financial position as deferred income
C. In the statement of financial position as a deduction from the carrying amount of the relevant asset
D. In the statement of financial position as defened income OR as a deduction from the carrying amount of the
relevant asset

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

22 https://www.udemy.com/user/mohamed-magdy-761/
Question 15. Enterprise Co has incurred the following expenditure prior to the commercial production of a new
product.

Marketing campaign € 30,000

Royalty payment to product inventor € 15.000

Staff training in production techniques € 10.500

In accordance with [AS 38 Intangible Assets and assuming that the recognition criteria are met pnor to incurring the
listed expenditure, what amount can Enterprise Co recognise as an intangible asset for development expenditure? _

A. Nil
B. € 15,000
C. € 25,500
D. € 55,500

Question 16. Mine Co commissioned an opencast mine on 1 April 20X0.'l"he mining operation is expected to be
completed on 31 March ZOXS. At 31 March 20X1 the following remedial work requirements were identified:

✓ Removal of plant and other site preparation work, which was installed at the time of commissioning. The cost
is estimated at $10 million.
✓ Restoration of site damage which is progressively created as material is extracted from the mine. An
independent surveyor has estimated that the total cost for the restoration of the damage at 31 March ZOXS
will be $20 million.The restoration cost for the extraction to date is estimated at $3 million.

What provision should Mine Co include in the 31 March ZOX1 financial statements? Ignore discounting.

A. $30,000,000
B. $3,000,000
C. $10,000,000
D. $13,000,000

Question 17. which of the following practices is not allowed by International Financial Reporting Standards?

A. Use of the closing exchange rate for the translation of the statement of profit or loss of a foreign subsidiary
B. Accounting for incorporated joint ventures using the equity method.
C. Accounting for changes in accounting policy by restating comparatives and adjusting the prior year opening
retained earnings
D. Recognising actuarial gains and losses in other comprehensive income

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

23 https://www.udemy.com/user/mohamed-magdy-761/
Question 18. Station Co holds three types of inventory. The following details are relevant:

Inventory type Cost Selling price Selling costs

A 250 275 40
B 125 145 15
C 320 290 30
What amount should Station Co include in its statement of financial position for inventory in accordance with IAS 2
Inventory?

A. $695
B. $620
C. $625
D. $700

Question 20. IAS 1 requires that an entity presents a statement of profit or loss and other comprehensive income. The
other comprehensive income section may include

A. exceptional items of profit or loss

B. dividends declared and paid during the period
C. royalty income
D. remeasurements of a defined benefit plan

Question 22. Which of the following statements regarding a statement offinancial position (balance sheet) is correct
according to IAS 1 Presentation of Financial Statements?

A. Deferred tax assets or liabilities can be classified as current assets or current liabilities
B. Investment property must be disclosed separately from property, plant and equipment on the face of the
statement of financial position
C. To classify an asset as non—cun'ent, an entity must expect to realise the asset, or consume it, within its
normal operating cycle
D. The statement of financial position must be presented in a vertical format

Question 23. IAS 1 Presentation of Financial Statements envisages that an entity's financial statements should be
presented at least every 12 months. Which of the following statements is correct according to IAS 1?

A. A reporting period can exceed 12 months but the reason must be disclosed.
B. A reporting period can be less than 12 months; no disclosure of reason is required.

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

24 https://www.udemy.com/user/mohamed-magdy-761/
 C. A reporting period can be more or less than 12 months but the reason must be disclosed.
D. A reporting period can exceed 12 months but not 18 months; no disclosure of reason is required.

Question 24. IAS 1 Presentation of Financial Statements normally requires that an entity presents assets and liabilities
split between those that are current and those that are non-current. Which of the following statements is true when
this classification is not provided in the statement of financial position by a reporting entity?

A. The classification must be disclosed in the notes

B. Assets and liabilities should be presented broadly in line with their liquidity
C. Assets and liabilities should be presented in order of the magnitude of the current period balances
D. Assets and liabilities must be separated broadly into those related to operating, investment and financing

Question 25. IFRS 9 Financial Instruments allows the use of hedge accounting if certain criteria are met. Which of the
following is NOT one of these criteria?

A. The hedging relationship consists of only eligible hedging instruments and hedged items
B. At the beginning of the hedge there is formal designation of the hedge relationship and the entity's risk
management objective
C. The hedge meets certain criteria that make it effective
D. All of the above - Gains and losses on thegedged item and hedging instnrment net off exactly

Question 1 . on 1 march 20x1 an enterprise ISSUES 3,000 convertible $100 bonds ( a component instrument ) at par
interest id payable annually in arrears at 7 % . The prevailing market rate of interest at he date of issue is 9 % . the
bonds are redeemable on 28 February 2OX4.

What is the equity component of the instrument calculated under IAS 32?

A. NIL
B. 151.940
C. 2848060
D. 3000000

Question 1 , in accordance with !AS 41 agriculture , which of the following statement is correct ?

A. A fruit tree is initially measured at cost

B. Daily cattle are initially measured at fair value
C. Stores of harvested tea are within the scope of IAS 41
D. A gain in remeasurment of sheep to fair value is reported in OCI

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

25 https://www.udemy.com/user/mohamed-magdy-761/
Question 2 ; which one of the following statement id correct ?

A. An unlisted UK company must apply IFRS 102

B. US domestic listed companies must apply ifrs standard
C. The UK financial reporting standard FRS 102 is based on the IFRS for SMEs standard
D. The IASB must issue a discussion paper before amending an IFRS standards

Question 3 : which of the following would be related partied of a reporting entity accourding to IAS 24 related party
disclosures ?

1. Another entity that is controlled by the parent of the reporting entity

2. A member of key management personal of the entity
3. A close family member of key management personnel of the entity
A. 1,2 and 3
B. 1 and 2 only
C. 2 and 3 only
D. 1 only

Question 4 : gain inc acquired a property in 20X0 for a cost of $ 10 millions . gain inc has adopted the allowable
alternative concluded within IAS 16 property plant Equipment and revalues all of its property annually . on 15
December 20X1 gain inc enters into a binding sale agreement and the title to the property passes to gloss inc , for cash
consideration of 25 millions . the consideration is payable in march 20x2 , the carrying value of property at 15
December 20x1 was 22 millions

What amount , calculated in accordance with IAS 16 should be reported in profit or loss for gain inc for the years
ending 31 December 20x1 and 31 December 20x2 in respect of the disposal ?

A. 20X1 = nil 20X2 =3 million

B. 20X1 = 3 million 20X2 = 12 million
C. 20X1 = 3 million 20X2 = NIL
D. 20X1 = 15 million 20X2 = NIL

Question 6 in 20x5 leasy co sell and leases back a manufacturing assets by way of a lease > the transfer does not
qualify as sale in accordance with IFRS 15 , the sale proceeds were in excess of fair value and exceeded carrying
amount of the assets , which of the following statement is true ?

A. The sale proceeds are recognized as a financial liability

B. The excess of sale proceeds over fair value are recognized as a financial liability
C. A right of use assets is recognized
D. The assets is derecognized and a gain or loss on disposal arises

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

26 https://www.udemy.com/user/mohamed-magdy-761/
Question 6 y co adopts IFRS for the first time its financial statement for the year ended 31 December 20x5 , which of
the following statement is true under IFRS 1 , first time adoption on international financial reporting standard ?

A. The opening balances at January 20x4 , and the financial statement for the years ended 31 December 20x4
(comparative) and 31 December 20x5 must comply with the IFRS in force at 31 December 20x5
B. The opening balances at January 20x4 , and the financial statement for the years ended 31 December 20x4
(comparative) and 31 December 20x5 must comply with the IFRS in force at 1 January 20x4
C. The opening balances at January 20x5 , and the financial statement for the years ended 31 December
20x5must comply with the IFRS in force at 1 January 20x5 . the financial statement for 20x4 remain
unchanged
D. The opening balances at January 20x5 , and the financial statement for the years ended 31 December 20x5
must comply with the IFRS in force at 31 December 20x5 . the financial statement for 20x4 remain unchanged

Question 7 : IAS 21 the effects of change in foreign exchange rate requires that an exchange difference on translation
of a foreign operation financial statement should be accumulated in a separate component of equity . on disposal of
such a foreign operation , the cumulative amount of exchange differences held in respect of that operation should be
?

A. Reclassified to profit or loss as part of the gain or loss on disposal (shown in the profit or loss as part of the
gain or loss on disposal )
B. Left in a separate components of equity
C. Transferred to retained earnings
D. Recognized as an extraordinary item in the statement of profit or loss

Question 8 which one of the following statement is correct according to IAS 7 statement of cash flows ?

A. Preparing a statement of cash flows using the direct method give a different cash flow from operating
activities to that using the indirect method
B. Cash flows from interest and dividends should be disclosed separately
C. A statement of cash flows may be included as a primary statement in an entity of financial statement , or in
the notes to the financial statements
D. Financial activities include the acquisition and disposal of long term assets and other investment not included
in cash equivalents

Question 9 . dolphin co acquired an 80% share of whale co on 1 april 20x1 foe 5 m , the fair value of the net assets of
whale co on that date were 3 m . the non controlling interest wwas valued at 0.8 m , its fair value , calculate goodwill
based on the full goodwill method under IFRS 3 .

A. 2.6
B. 2.8
C. 2.0
D. 2.4
‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬
27 https://www.udemy.com/user/mohamed-magdy-761/
Question 9 . EJI acquires 60% of the issued shared capital of SNJ on 30 April 20x2

The profit before tax of the two companies for the year ended 31 December 20x are :

EJI 350000

SNJ 600000

What is the figure before tax that would be shown in the consolidated statement of profit or loss of EJI for the year
ended 31 December 20x2 , in accordance with IFRS 3 business combination ?

A. 950000
B. 590000
C. 710000
D. 750000

Question 10 . butter co, issue 50m 6 % preference share at par on 1\1\20x0 . the share carry a contractual obligation
to be redeemed at a 10% premium in 5 years time . according to IFRS standard , how should be initially recognized in
the financial statement on 1\1\20x0 ?

A. As a financial liability of 55 m
B. As a financial liability of 50 m
C. As an equity instrument of 55 m
D. As an equity instrument of 50 m

Question 12 . which of the following statement about the IFRS for SMEs standard are correct ?

1. Companies may only use the standards if they meet prescribed size limits
2. The IFRS for SMEs standard cannot be applied by insurance companies
3. The IFRS for SMEs may be adopted by jurisdictions that have not adopted full IFRS standard ?
A. 1 and 2
B. 2 And 3
C. 1 And 3
D. All of them

Question 14 . leasy inc sell and leases back a manufacturing assets by ay a finance lease . the net book value at the
date of disposal was 80000 , the sale proceed and fair value were 100000 and the remaining usefull economic life is 5
years. The lease rental are 25000 per annum for 5 years .

What is the total net charge to profit or loss for each year of the lease , in accordance with IAS 17 lease ?

(finance charge and depreciation should be spread on a straight line basis )

A. 1000

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

28 https://www.udemy.com/user/mohamed-magdy-761/
 B. 21000
C. 25000
D. 29000

Question 17 . A co owns a controlling investment of 70% od B co . during the year, A co sold goods to B co for 60000 at
cost plus 205 . at the ear end , B co still had half of the goods in their inventory was 80000 . how much inventory
should be recognized in A co consolidated statement of financial position ?

A. 195000
B. 200000
C. 176000
D. 158000

Question 17 , IAS 36 impairment of assets requires that an asset is not carried at more than its recoverable amount ,
which of the following best describes recoverable amount ?

A. The higher of the present value of all future cash flows associated with the assets for the rest of its
useful life and fair value .
B. The higher of the fair value less disposal costs and the present value of cash flows expected to be
generated by the assets over a maximum of 5 years.
C. The higher of the present value of all future cash flows associated with the assets for the remainder of
its useful life less selling costs .
D. The higher of the fair value and the present value of cash flows expected to be generated by the
assets over a maximum of 5 years.

Question 18 , to which of the following investments MUST equity accounting be applied ?

1. Associates in the consolidated financial statements

2. Associates in the separate financial statements of the investor
3. Joint operation in the consolidated financial statements
A. 1 only
B. 1 and 2
C. 2 and 3
D. 1 , 2 and 3

Question 19 . under IAS 1 an entity must present a statement of profit or loss and other comprehensive income ,
which of the following statement id true in respect of the other comprehensive income section ?

1. Items should be grouped into those that ill subsequently be reclassified to profit or loss those that will not
subsequently be reclassified to profit or loss .
2. Item must be shown net of income tax.
‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬
29 https://www.udemy.com/user/mohamed-magdy-761/
 3. Extraoridinary items should be listed separately with details of the natue of the item disclosed in the
notes.
A. All of the above
B. 1 and 2 only
C. 2 only
D. 1 only

Question 22 , yoohoo co bought a significant items of plant for 240000 in January 20x0 . at the acquisition date
management set the useful economic life at 6 years , in 20x1 , it is decided that a life of 4 years would have been more
appropriate , how should yoohoo co treat this ?

A. This is a change of accounting policy and adjusted prospestivelly , do not change prior year . in 20x1 and going
forward take the carrying amount of 200000 and depratiante over the remaining useful life of 3 years
B. This is a change of accounting policy and adjusted retrosectively , restate prior year to show a depreciation
change of 60000 rater than 40000 . the depreciation change in 20x1 and going forward will also be 60000
C. This is a change of accounting estimate and adjusted prospestivelly , do not change prior year . in 20x1 and
going forward take the carrying amount of 200000 and depratiante over the remaining useful life of 3 years
D. This is a change of accounting estimate and adjusted retrosectively , restate prior year to show a
depreciation change of 60000 rater than 40000 . the depreciation change in 20x1 and going forward will also
be 60000

Question 23 , which statement I correct regarding the 2018 conceptual framework ?

A. Current value measurement included fair value and value in use .

B. An assets id recognized if it is probable that economic benefit will flow to an entity
C. Part of an entity cannot be reporting entity
D. All income and expense must be measured in profit or loss without exception

Question 23 . which of the following statement is correct ?

A. Internally developed brands must be capitalized at cost

B. All intangible assets are deemed to have an indefinite useful life
C. intangible assets may be depreciated on a reducing balance basis
D. intangible assets may not be revalued upwards

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

30 https://www.udemy.com/user/mohamed-magdy-761/
 ‫للمزيد من الدورات التدريبية المعتمدة من ‪ UDEMY‬يرجى الذهاب الى‬
‫‪31‬‬ ‫‪https://www.udemy.com/user/mohamed-magdy-761/‬‬
‫‪S‬‬

‫للمزيد من الدورات التدريبية المعتمدة من ‪ UDEMY‬يرجى الذهاب الى‬

‫‪32‬‬ ‫‪https://www.udemy.com/user/mohamed-magdy-761/‬‬
 ‫للمزيد من الدورات التدريبية المعتمدة من ‪ UDEMY‬يرجى الذهاب الى‬
‫‪33‬‬ ‫‪https://www.udemy.com/user/mohamed-magdy-761/‬‬
Question 2. Below are a number of statements relating to IFRSS ‘Non - current assets held for sale and discontinued
operations’. Which one of these statements is true?

• IFRSS states the principles or deciding when and how to recognise and measure the income expenses, cash
flows and changes in assets and liabilities relating to a discontinued operation
• IFRSS only applies to those reporting entities whose securities are listed on an International Stock exchange.
• The definition of a segment for separate disclosure as a discontinued operation cannot be met unless the
operations were previously disclosed as a separate business segment under IFRS 8.
• IFRS5 classifies a discontinued operation as a component of an entity that has been disposed of or is classified
as held for sale

Question 3. In accordance with IAS 20 ‘Government grants and assistance‘, grants related to assets are recorded:

• In the statement of profit or loss for the period they are due to be received
• In the statement of financial position as deferred income
• In the statement of financial position as a deduction from the carrying amount of the relevant asset
• In the statement of financial position as deferred income OR as a deduction from the carrying amount of the
relevant asset

Question 7. Which of the following statements regarding intangible assets is NOT true?

• Development expenditure that meets the qualifying criteria must be capitalised

• 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 recognised as an asset

Question 8. International Financial Reporting Standards allow certain transactions to be taken through other
comprehensive income.

Which of the following types of transaction CANNOT be taken to other comprehensive income?

• Deferred tax insofar as it relates to a transaction which has gone to other comprehensive income

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

34 https://www.udemy.com/user/mohamed-magdy-761/
 • Foreign exchange differences arising on a monetary item that is in substance, part of a net investment in a
foreign entity
• Revaluation surpluses recognised when adopting the allowed alternative method for the subsequent
measurement of non-current assets
• the impairment losses when writing down to nil value a non current asset which was not previously revalued

Question 10. Issus Inc. has 100,000 shares in issue on 1 January 20X0. On 31 March 20X0 it issues $200,000 of 5%
convertible debt. The terms of conversion allow the debt holders to convert each $100 of debt into 10 shares on 30
September 20X2 or to convert each $100 of debt into 12 shares on 30 September 20X4.

The profit after tax for the year ended 31 December 20X0 is $300,000.

The rate of tax is 30%.

What is the diluted earnings per share (eps) for the year ended 31 December 20X0 in accordance with IAS 33 Earnings
Per Share’.

• $2.48
• .$2.59
• $2.65
• $3.00

Question 13. Which of the following correctly describes the ordering and inclusion of items in a cash flow statement in
accordance with IAS 7 ‘Statement of cash flows‘?

• Operating activities; investing activities (including proceeds from long-term borrowings); financing activities
• Operating activities; investing activities (including dividends received); financing activities
• Operating activities (including income taxes paid); financing activities; investing activities
• Financing activities; investing activities; operating activities (including interest paid)

Question 16. An associate is a company over which

• the parent has control; it should therefore be fully consolidated

• the parent has significant influence; it should be fully consolidated
• the parent has significant influence; it should be equity accounted for in the group accounts
• the parent has significant influence; it should be treated as a simple investment in the group accounts

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

35 https://www.udemy.com/user/mohamed-magdy-761/
Question 17. IFRS 4, Insurance Contracts was issued in order to:

• Combat recent frauds and scandals in the Insurance Sector

• Enable companies to comply with IFRS as many accounting practices used by insurance companies were in
conflict with IFRS.
• Account for all insurance company transactions
• To improve disclosures for all insurance contracts and produce a comprehensive standard on recognition and
measurement practices

Question 18. IAS 1 "Presentation of financial statements" states that when items of income and expense are
significantly large there should be separate disclosure of these items if it is relevant to explain the performance of the
company.

Details of these items is usually made

• in the notes to the financial statements

• On the face of the statement of profit or loss
• On the face of the statement of financial position
• On the face of the statement of profit or loss or in the notes to the financial statements

Question 19 Under IAS 19 Employee benefits, which of the following statements is true in relation to accounting for
defined benefit pension schemes?

• Actuarial gains and losses arising should be recognised immediately in other comprehensive income
• Actuarial gains and losses arising may be recognised immediately, or deferred and spread over the average
remaining working life of employees using the corridor approach
• Where a net pension asset arises, this may be recognised in full.
• Past service costs which are caused, for example, if the benefits in the plan are increased, should be
recognised immediately if they are already vested, but otherwise over the average period until the benefits
become vested

Question 20. Which one of the following statements according to International Financial Reporting Standards is
correct?

• All assets should be valued at the lower of selling price and value in use
• Only intangible assets should be valued at the lower of recoverable amount and carrying amount
• Impaired assets are those whose recoverable amount is less than carrying value
• The value in use is always higher than selling value

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

36 https://www.udemy.com/user/mohamed-magdy-761/
Question 22. What is the status of an IFRIC?

• has the same status as a standard

• it must only be complied with if there is no standard on the subject
• Compliance with an IFRIC is optional
• It must only be complied with if there is a standard on the subject

Question 23. Under IAS 1 ‘Presentation of financial statements’ which of the following items could be disclosed as an
extraordinary item:

• Write-downs resulting from expropriation of assets by a foreign government

• loss rom the settlement of public and product liability lawsuits
• Claims paid by a train company as a result of a crash
• None of them - Extraordinary items are not allowed

Question 24. Torpedo plc took out a bank loan on 1 April 20X0 for $10 ,000. It is due to be paid back in equal n y
instalments of $250, starting on 1 May 20X0. How should Torpedo include the loan in its statement of financial
position at 30 June 20X0?

• A non-current liability of $9,500

• A current liability of $3,000 and a non-current liability of $7,000
• A non-current liability of $10,000
• A current liability of $3,000 and a non-current liability of $6,500

Question 25. Jelly bean plc purchased an item of plant on 1 January 20X0 for $500,000. Its estimated useful life s
years and it was expected to have nil residual value. On 31 December 20X2, the plant was revalued upwards to
$750,000 with no change to the estimated useful life. On 1 January 20X4 the plant was sold for $800,000. What was
the gain/loss on disposal to be recorded in the statement of profit or loss for the year ended 31 December 20X4?

• $300,000 profit
• $50,000 loss
• $143,750 profit
• $450,000 profit

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

37 https://www.udemy.com/user/mohamed-magdy-761/
Question 1 lAS39 "Financial Instruments: Recognition and Measurement" allows the use of hedge accounting.

Hedge accounting is permitted if

• It is clearly defined
• It is clearly defined and measurable
• It is clearly defined, measurable, and effective
• It is clearly defined, measurable effective, and the hedged item related solely to cash flows

Question 2. An entity adopting IFRS 6 Exploration and Evaluation of Mineral Resources:

• May continue to use the accounting policies applied immediately before adopting the IFRS
• May not continue to use the accounting policies applied immediately before adopting the IFRS
• Must apply all the relevant IFRSs
• Must develop an accounting policy for exploration and an evaluation assets by specifically considering the
requirements of paragraphs 11 and 12 of IAS 8

Question 5. IAS 28 ‘Investment in Associates and Joint Ventures states that in the separate financial statements (i.e.
not the consolidated financial statements) of an investor where that investor also issues consolidated financial
statements, an associate should be:

• Held at cost or in accordance with IFRS 9

• Valued using the equity method of accounting
• Held at fair value only
• Accounted for using proportionate consolidation

Question 6. IFRS1, First time Adoption of International Financial Reporting Standards, allows certain optional and
mandatory exceptions to the rule that all assets and liabilities under previous GAAP should comply with IFRS at the
date of transition. Which of the following elements of the financial statements is a mandatory exception?

• Business combinations
• Employee Benefits
• Foreign translation reserves
• Hedge Accounting

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

38 https://www.udemy.com/user/mohamed-magdy-761/
Question 8. On 1 April 20X1, Bertie Co enters into a five-year operating lease with six-monthly rental payments in
advance. These include one upfront payment of $6,000 followed by 9 further payments of $1,000. The expense
charged through the statement of profit or loss for the year ended 31 December 20X1 will be:

• $2,250
• $3,000
• $6,000
• $2,000

Question 10. Which of the following statements is correct?

• IAS 16 ‘Property, Plant 8i Equipment’ forbids the capitalisation of any subsequent expenditure on an asset
• IAS 36 ‘Impairment of Assets‘ applies to all assets including inventories and receivables
• IAS 20 ‘Accounting for Government Grants and Disclosure of Government Assistance‘ allows grants related to
assets to be presented in the statement of financial position as deferred income or as a deduction from the
cost of the related assets.
• IAS 17 'Leases' introduces a 90% numerical threshold to provide guidance on the substantial transfer of risks
and rewards in respect of finance leases

Question 11. The purpose of the International Financial Reporting Interpretations Committee (‘IFRIC‘) is to:

• Consider accounting issues that are likely to receive unintended or unacceptable treatment in the absence of
any other form of guidance
• Ensure accurate translation from English into the other principal languages utilised by the IASB
• Provide initial technical advice and service for companies wishing to adopt International Accounting Standards
• Provide a compliance function to ensure the timely and accurate adoption of new International Accounting
Standards by companies with listed securities.

Question 13. Jelly bean plc purchased an item of plant on 1 January 20X1 for $500,000. Its estimated useful life was 10
years and it was expected to have nil residual value. On 31 December 20X2, the plant was revalued upwards to
$750,000 with no change to the estimated useful life. On 1 January 20X4 the plant was sold for $800,000. What was
the gain/loss on disposal to be recorded in the statement of profit or loss for the year ended 31 December 20X4?

• $300,000 profit
• $50,000 loss
• $143,750 profit
• $450,000 profit

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

39 https://www.udemy.com/user/mohamed-magdy-761/
Question 15. IFRS 8 ‘Operating Segments’ suggests that reportable segments should be identified by reference to:

• The nature of the legal constitution of the group

• The judgement of the Board of Directors
• The nature of the geographical dispersion of the group
• The segment whose operating results are regularly reviewed by the group's chief operating decision maker

Question 21. Which of the following correctly describes the ordering of items in a statement of financial position
(balance sheet) in accordance with the guidance on implementing IAS 1 ‘Presentation of Financial Statements‘?

• Non-current assets; current assets; non~current liabilities; current liabilities; capital and reserves
• Non-current assets; current assets; capital and reserves; non-current liabilities; current liabilities
• Nori~current assets; non>current liabilities; current assets; current liabilities; capital and reserves
• Non-current assets; current assets; current liabilities; non-current liabilities; capital and reserves

Question 22. Which one of the following statements is correct?

• All publicly listed companies are required to prepare their financial statements using IFRS
• To claim compliance with IFRS, all IFRS requirements must be fulfilled
• A mixture of IFRS and local GAAP is adequate to claim compliance with IFRS
• If preparing financial statements using IFRS, a statement must be made stating this in the financial statements
according to IAS 1 Presentation of Financial Statements

Question 17. Investco, a public limited company, had its non-current assets valued on 1 July ZOXO. The assets have
increased in value in recent years but are not subject to volatile increases in their fair value.

How frequently should Investco revalue its non-current assets under IAS16 "Property, Plant and Equipment"?

• Annually
• Every three to five years
• Every five years
• Only if there is volatile movement

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

40 https://www.udemy.com/user/mohamed-magdy-761/
Question 16. What is the main purpose of the IASB's Conceptual Framework for Financial Reporting?

• States the objective of general purpose financial reporting

• Sets out the guiding principles that individual standard setters should follow
• Gives the key presentation rules for the financial statements
• Sets out the standard format for the reconciliation of financial statements to tax computations

Question 8. On 1 April 20Xl, Bertie Co enters into a five-year operating lease with six monthly rental payments in
advance. These include one upfront payment of $6 000 followed b further payments of $1,000. The expense charged
through the statement of profit or loss for the year ended 31 December 20X1 will be:

• $2,250
• $3,000
• $6,000
• $2,000

Question 25. IAS 1 "Presentation of financial statements" states that when items of income and expense are
significantly large there should be separate disclosure of these items if it is relevant to explain the performance of the
company.

Details of these items is usually made

• In the notes to the financial statements

• On the face of the statement of profit or loss
• On the face of the statement of financial position
• On the face of the statement of profit or loss or in the notes to the financial statements

. Bush Co leases a train over a 3-year term commencing on 1 June 20X5. The discounted present
value of the future lease payments is $64,427. The interest rate implicit in the lease is 8% and lease
payments of $25,000 are required annually in arrears. What is the carrying amount of the lease
liability at 31 May X7?

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

41 https://www.udemy.com/user/mohamed-magdy-761/
 $18,988

$42,581

$44,581

$23,148

According to the IASB's Conceptual Framework for Financial Reporting, which of the following
meets the definition of an asset

$10,000 spent to develop a list of customers and their purchase preferences

$25,000 invested in loan stock of another company

$19,000 spent to repair damage to the roof of a building after a storm

$22,000 spent on an advertising campaign to launch a new product

The accountant of Lobb Co is preparing a statement of cash flows and has identified the following
amounts:
Depreciation of $45,000
An increase in inventory levels of $80,000
A decrease in trade receivables of $65,000
A decrease in trade payables of $22,000
What is the net effect of these amounts when reconciling from profit before tax to cash generated
from operations?

$8,000

$38,000

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

42 https://www.udemy.com/user/mohamed-magdy-761/
 $52,000

$82,000

In accordance with IFRS 11 Joint Arrangements, a joint venture should be incorporated into the
group financial statements using:

Full line-by-line consolidation

Proportionate consolidation only

Equity accounting only

Proportionate consolidation or equity accounting

The two main requirements of financial information are that it should:

Be prudent and free from bias

Adhere to the principles of going concern and consistency

Be relevant and offer a faithful representation

Be complete and comparable

AS 1 Presentation of Financial Statements envisages that an entity's financial statements should be

presented at least every 12 months. Which of the following statements is correct according to IAS
1?

A reporting period can exceed 12 months but the reason must be disclosed.
‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬
43 https://www.udemy.com/user/mohamed-magdy-761/
 A reporting period can be less than 12 months; no disclosure of reason is required.

A reporting period can be more or less than 12 months but the reason must be disclosed.

A reporting period can exceed 12 months but not 18 months; no disclosure of reason is
required.

In accordance with IFRS 11 Joint Arrangements, a joint venture should be incorporated into the
group financial statements using:

Full line-by-line consolidation

Proportionate consolidation only

Equity accounting only

Proportionate consolidation or equity accounting

Which of the following statements describes the requirements of IFRS 6 Exploration for and
evaluation of mineral resources:

An entity is free to choose its own capitalisation policy which may be different for each
exploration project.

An entity can choose its own capitalisation policy as long as it results in relevant and reliable
information.

An entity must apply the capitalisation criteria set out in IAS 38 Intangible assets to exploration
costs

An entity is not permitted to capitalise exploration and evaluation expenditures

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

44 https://www.udemy.com/user/mohamed-magdy-761/
Bush Co leases a train over a 3-year term commencing on 1 June 20X5. The discounted present
value of the future lease payments is $64,427. The interest rate implicit in the lease is 8% and lease
payments of $25,000 are required annually in arrears. What is the carrying amount of the lease
liability at 31 May X7?

$18,988

$42,581

$44,581

$23,148

AS 7 explains the movement of cash and cash equivalents from the start to the end of a period.
How does IAS 7 define cash equivalents?

Investments that can be converted to cash within 3 months and carry an insignificant risk of
changes in value.

Investments that can be converted to cash within 3 months and carry a material risk of changes
in value

Short-term highly liquid investments that are readily convertible to cash and carry a material risk
of changes in value.

Short-term highly liquid investments that are readily convertible to cash and carry an
insignificant risk of changes in value.

Which of the following statements is correct when accounting for business combinations?

Goodwill must be tested for impairment only when indicators exist

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬
45 https://www.udemy.com/user/mohamed-magdy-761/
 Provisions for future restructuring costs arising from the business combination should be
recognised in applying the acquisition method

Goodwill must be tested at least annually for impairment

An impairment loss arising on full goodwill is allocated between the group and NCI in proportion
to the carrying amount of their respective goodwill balances

Which of the following is a stated purpose of the IASB's Conceptual Framework for Financial
Reporting?

To assist preparers when dealing with topics not covered by an IFRS Standard

To provide guidance on filing financial statements

To identify minimum disclosure on the face of financial statements

To set out the standard format for the reconciliation of financial statements to tax computations

The two main requirements of financial information are that it should:

Be prudent and free from bias

Adhere to the principles of going concern and consistency

Be relevant and offer a faithful representation

Be complete and comparable

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

46 https://www.udemy.com/user/mohamed-magdy-761/
Y Co used some but not all IFRSs in its financial statements to 31 December 20X4. In the year to
31 December 20X5, Y Co is to adopt all IFRSs.

Which of the following statements is true under IFRS 1, First time Adoption of International Financial
Reporting Standards?

In the year to 31 December 20X4, Y is considered to be a first time adopter

In the year to 31 December 20X5, Y is not considered to be a first time adopter

In the year to 31 December 20X5, Y is considered to be a first time adopter

Y is not a first time adopter in 20X4 or 20X5.

The accountant of Lobb Co is preparing a statement of cash flows and has identified the following
amounts:
Depreciation of $45,000
An increase in inventory levels of $80,000
A decrease in trade receivables of $65,000
A decrease in trade payables of $22,000
What is the net effect of these amounts when reconciling from profit before tax to cash generated
from operations?

$8,000

$38,000

$52,000

$82,000

IAS 1 requires that an entity presents a statement of profit or loss and other comprehensive income.
The other comprehensive income section may include

exceptional items of profit or loss

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬
47 https://www.udemy.com/user/mohamed-magdy-761/
 dividends declared and paid during the period

royalty income

remeasurements of a defined benefit plan

Which of the following correctly describes the classification of cash flows in accordance with IAS 7
Statement of cash flows?

The proceeds from long-term borrowings are classified as investing activities

Investing activities may include dividends received

The purchase of plant for cash is a financing activity

Investing activities may include the repayment of finance leases

IAS 21 The Effects of Changes in Foreign Exchange Rates requires that any exchange differences
on translation of a foreign operation's financial statements should be accumulated in a separate
component of equity. On disposal of such a foreign operation, the cumulative amount of exchange
differences held in respect of that operation should be

Reclassified to profit or loss as part of the gain or loss on disposal

Left in a separate component of equity

Transferred to retained earnings

Recognised as an extraordinary item in the statement of profit or loss

Which of the following statements is correct?

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

48 https://www.udemy.com/user/mohamed-magdy-761/
All internally developed intangible assets are capitalised at cost

All intangible assets are deemed to have an indefinite useful life

Intangible assets may be depreciated on a reducing balance basis

Intangible assets can never be revalued upwards.

‫ يرجى الذهاب الى‬UDEMY ‫للمزيد من الدورات التدريبية المعتمدة من‬

49 https://www.udemy.com/user/mohamed-magdy-761/