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| Section | Weight | Objectives |
|---|---|---|
| Income Taxes | 18% | - Current and deferred tax calculation - Tax effects in financial statements |
| Business Combinations and Group Accounting | 20% | - Business combinations and goodwill - Non-controlling interests - Consolidation principles and procedures |
| Role and Regulatory Framework of Financial Reporting | 15% | - Regulatory environment and standards setting - Conceptual framework and qualitative characteristics - Business entities and reporting obligations |
| Impairment of Assets | 6% | - Impairment testing and recognition - Impairment indicators and recoverable amount |
| Presentation of Financial Statements | 15% | - Statement of cash flows and notes - Statement of financial position - Statement of profit or loss and OCI |
| Financial Instruments | 12% | - Recognition, derecognition and disclosure - Classification and measurement |
| Revenue, Provisions and Liabilities | 14% | - Revenue from contracts with customers - Provisions, contingent liabilities and assets |
1. Which one of the following describes the key advantage of the manual system of accounting?
A) A thorough understanding of the business can be gained through it.
B) Corrections are easily managed as updating or recreating the whole document is not difficult.
C) The quality of output is not necessarily an issue.
D) Processing is maintained at a reasonable speed even while dealing with large volumes of data.
2. Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.
A) I, II and III only
B) II, III and IV only
C) I, II and IV only
D) I, III and IV only
3. Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?
A) to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
B) to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere
C) to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
D) to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
4. Published financial statements are regulated by
A) accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
B) shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.
C) rules to ensure the provision of consistent financial information to investors.
D) International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.
5. According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of
A) employees.
B) management.
C) capital providers.
D) internal users.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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