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IFRS CPA Exam |Questions with 100% Verified Answers
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IFRS CPA Exam |Questions with 100% Verified Answers
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IFRS CPA Exam |Questions with 100% VerifiedAnswers
Under IFRS, *intangible assets* with *indefinite lives are tested* for impairment
- ✔ ✔ *Annually* at the annual *reporting* date.
Under IFRS when accounting for *plant, property, and equipment*, a company -
✔ ✔ May elect to use the *cost model or the revaluation* model on *ANY asset
class*
If the *outcome of rendering services* *cannot be estimated* reliably, IFRS.
requires the use of which revenue recognition method? - ✔ ✔ Cost
recovery method.
Two *revenue recognition* methods ALLOWED under IFRS? - ✔ ✔ 1. Cost
recovery method.
2. Percentage-of-completion method.
Two *revenue recognition* methods NOT ALLOWED under IFRS? - ✔ ✔ 1.
Installment method.
2. Completed contract method.
, Under the IFRS *revaluation model* for accounting for plant, property, and
equipment - ✔ ✔ There are *no rules* regarding the frequency of revaluation*
Which of the following methods of accounting for inventory is not allowed
under IFRS? - ✔ ✔ LIFO
Wilson Company maintains its records under IFRS. During the current year
Wilson *sold a piece of equipment used in production*. The equipment had been
accounted for *using the revaluation method* and details of the accounts and
sale are presented below:
Sales price - $100,000
Equipment book value (net) - 90,000
Revaluation surplus - 20,000
Which of the following is correct regarding *recording the sale*? - ✔ ✔ The gain
that should be recorded in *profit and loss is $10,000*; the $20,000
*revaluation surplus should be transferred to retained earnings*
An entity *purchases a trademark* and incurs the following *costs in connection*
with the trademark:
*One-time trademark purchase price - 100,000*
*Nonrefundable VAT taxes - 5,000*
Training sales personnel on the use of the new trademark-7,000
Research expenditures associated with the purchase of the new
trademark-24,000
*Legal costs incurred to register the trademark - 10,500*
Salaries of the administrative personnel - 12,000
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