Q241: Which of the following is not permitted as a cost to sell under IAS 36?
- A. Cost to dismantle machine
- B. Standard wages for employees
- C. Auctioneers fees
- D. Transport costs for machine
Answer
Answer B. Standard wages for employees
Q242: Which of the following is not covered by IAS 36 Impairment?
- A. Inventory
- B. Property, Plant and Equipment
- C. Motor Vehicles
- D. Intangible assets
Answer
Answer A. Inventory
Q243: What is the correct treatment for all eligible borrowing costs under IAS 23?
- A. Expensed
- B. Capitalised
- C. Invested
- D. None of the above
Answer
Answer B. Capitalised
Q244: Which of the following is not a qualifying asset under IAS 23 Borrowing Costs?
- A. Manufacturing plants
- B. Made to order inventory
- C. Mass produced inventory
- D. Investment property
Answer
Answer C. Mass produced inventory
Q245: Which of the following is not covered by IAS 20 Government Grants?
- A. Employment grants
- B. Subsidised loans
- C. Forgivable loans
- D. Tax breaks
Answer
Answer D. Tax breaks
Q246: If an entity receives a non-monetary asset as a grant, this is accounted for at
- A. Market value
- B. Present value
- C. Discounted value
- D. Fair value
Answer
Answer D. Fair value
Q247: Which of the following disclosures is not a requirement of IAS 20?
- A. Accounting policy adopted for grants
- B. Current grant applications in process
- C. Nature and extent of grants recognised in the financial statements
- D. Unfulfilled conditions, contingencies attaching to recognised grants
Answer
Answer B. Current grant applications in process
Q248: Grants should be recognised at
- A. Net realisable value
- B. Current value
- C. Fair value
- D. Market value
Answer
Answer C. Fair value
Q249: Which of the following items should be disclosed as per the requirements of IAS 2?
- A. Carrying amount of inventories pledged as security for liabilities
- B. Average lead time of procurement for major classes of inventories
- C. List of major customers to whom the inventories were sold during the reporting period
- D. Average holding period of inventories of the entity as at the end of the reporting period
Answer
Answer A. Carrying amount of inventories pledged as security for liabilities
Q250: Which of the following items are excluded from the scope of IAS 2 Inventories?
- A. Inventories that are stated at Net Realisable Value
- B. Assets held for sale in the ordinary course of business
- C. Inventories whose fair value is more than the cost
- D. Agricultural produce at the point of harvest
Answer
Answer D. Agricultural produce at the point of harvest
Q251: Under IAS 2, fixed production overheads should be allocated to items of inventory on the basis of___production capacity
- A. Actual
- B. Abnormal
- C. Normal
- D. Estimated
Answer
Answer C. Normal
Q252: Inventory excludes
- A. Finished goods produced
- B. Goods purchased for resale
- C. Raw materials
- D. Construction works in progress
Answer
Answer D. Construction works in progress
Q253: Which of the following costs must be expensed under IAS 2?
- A. Selling and distribution overheads incurred in the ordinary course of business
- B. Variable production overheads that are allocated to each unit based on actual usage
- C. Import duties on raw materials that are paid to the authorities
- D. Costs of purchase that are paid to the suppliers of raw materials
Answer
Answer A. Selling and distribution overheads incurred in the ordinary course of business
Q254: How does an entity adopt IFRSs for the first time?
- A. By reporting on its financial position, financial performance and cash flows in accordance with IFRSs
- B. By issuing its first financial statements in which the entity adopts IFRSs, by an explicit and unreserved statement of compliance with IFRSs
- C. By reporting on its financial position, financial performance and cash flows in accordance with national requirements, which do not contradict IFRSs
- D. By issuing its first financial statements in accordance with national requirements, which contain explicit and unreserved statement of compliance with IFRSs
Answer
Answer B. By issuing its first financial statements in which the entity adopts IFRSs, by an explicit and unreserved statement of compliance with IFRSs
Q255: Which of the following does IFRS 1 require an entity to do in the opening IFRS statement of financial position that it prepares as a starting point for its accounting under IFRSs?
- A. Recognise all assets and liabilities whose recognition is required by IFRSs
- B. Not recognise items as assets or liabilities if IFRSs do not permit such recognition
- C. Apply IFRSs in measuring all recognised assets and
- D. All of the above
Answer
Answer D. All of the above
Q256: Which of the following is the starting point for an entity accounting in accordance with IFRSs?
- A. The date when the decision about adopting IFRS has been made
- B. The date of issuance of the first financial statement in accordance with IFRS
- C. The date of transition to IFRSs
- D. The date when the explicit and unreserved statement of compliance with IFRSs has been made
Answer
Answer C. The date of transition to IFRSs
Q257: Does IFRS 8 allow an entity to combine information about operating segments into one reportable segment?
- A. Yes, if the operating segments have similar economic characteristics
- B. Yes, if the operating segments share the majority of the aggregation criteria listed in this IFRS
- C. Yes, if the operating segments do not meet the quantitative thresholds
- D. All of the above
Answer
Answer D. All of the above
Q258: A parent leases an office building to a subsidiary. In which financial statements will the property appear as investment property?
- A. Parent company
- B. Subsidiary
- C. Consolidated financial statements
- D. None of these
Answer
Answer A. Parent company
Q259: According to IAS 21, a foreign operation can be
- A. a subsidiary
- B. a joint venture
- C. a branch
- D. all of the above
Answer
Answer D. all of the above
Q260: Which of the following is the type of currency which the financial statements of the group are not presented in? denial of service or other attacks by malicious hackers, who demand money in return for promising to stop the attacks
- A. Local currency
- B. Functional currency
- C. Presentation currency
- D. None of the above
Answer
Answer A. Local currency
Q261: According to which IAS are dividends paid at the spot rate?
- A. IAS 20
- B. IAS 21
- C. 1AS 22
- D. None of these
Answer
Answer B. IAS 21
Q262: In which financial statement is foreign currency mainly disclosed?
- A. Statement of comprehensive income
- B. Statement of financial position
- C. Statement of cash flows
- D. None of the above
Answer
Answer C. Statement of cash flows
Q263: The recoverable amount of an asset is defined as
- A. 1. The assets resale value
- B. 2. Its value to the firm as it is stored away in the warehouse
- C. 3. Its value to the firm for internal use
- D. 1 and 2 only
Answer
Answer D. 1 and 2 only
Q264: Capitalisation is only started when
- A. Costs are being incurred for the asset law
- B. Borrowing costs are being incurred
- C. Action is being taken to prepare the asset for use of sale
- D. None of these
Answer
Answer B. Borrowing costs are being incurred
Q265: The International Accounting Standards Committee was established in
- A. 1976
- B. 1973
- C. 1982
- D. 2009
Answer
Answer B. 1973
Q266: The process of converting foreign-subsidiary financial statements into the home currency is known as
- A. Reconstruction
- B. Transmission
- C. Consolidation
- D. Transaction
Answer
Answer D. Transaction
Q267: The global key professional accounting body is
- A. The Financial Accounting Standards Board
- B. The International Accounting Standards Committee
- C. The Institute of Chartered Accountants of India
- D. The International Accounting Standards Board
Answer
Answer D. The International Accounting Standards Board
Q268: Accounting in India is governed by the
- A. RBI
- B. Company law Board
- C. Income tax department
- D. ICAI
Answer
Answer D. ICAI
Q269: The convergence of the Indian Accounting Standards with IFRS began in
- A. April 2010
- B. April 2012
- C. April 2015
- D. April 2000
Answer
Answer C. April 2015
Q270: Ind AS will apply to
- A. both consolidated as well as standalone financials of the company
- B. Only consolidated financials
- C. Only standalone financials
- D. Optional
Answer
Answer A. both consolidated as well as standalone financials of the company
Q271: Total Number of IAS which are notified as of date? government services
- A. 40
- B. 41
- C. 42
- D. 43
Answer
Answer B. 41
Q272: Total Number of IFRSs which are notified as of date?
- A. 16
- B. 17
- C. 18
- D. 19
Answer
Answer B. 17
Q273: Total Number of IFRIC Interpretations which are notified as of date?
- A. 23
- B. 24
- C. 25
- D. 26
Answer
Answer A. 23
Q274: Which of the following countries have conceptual frameworks for accounting?
- A. India
- B. Singapore
- C. Canada
- D. All the Above
Answer
Answer D. All the Above
