FA-FFA Module-7

1. In preparing the accounts of Oscar Ltd (Oscar) for the financial year ended 30 June 20X7, the following items were considered. In accordance with IAS 1 Presentation of Financial Statements, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and IAS 10 Events after the Reporting Period, which of the following items would be included in the determination of profit after income tax?

Select which three options are correct.

2. IAS 10 identifies the period covered by these events as starting immediately after the year end, and ending at the date of:

3. On 29 January 2007, management of an undertaking completes draft financial statements for the year to 31 December 2006. On 4 February 2007, the board of directors reviews the financial statements and approves them for issue. On 15 February 2007, the undertaking announces its profit and selected other financial information. On 18 March 2007, The financial statements are made available to shareholders, and others. On 25 April 2007, the shareholders approve the financial statements at the annual meeting. On 29 April 2007, the approved financial statements are then filed with a regulatory body. Which of the above dates marks the end of the period covered by IAS 10?

4. On 14 February 2008, the management of an undertaking approves financial statements for issue to its supervisory board. The supervisory board is made up solely of non-executives, and may include representatives of employees, and other outside interests. On 21 February 2008, the supervisory board approves the financial statements. On 10 March 2008, the financial statements are made available to shareholders, and others. On 17 April 2008, the shareholders approve the financial statements at their annual meeting. On 25 April 2008, the financial statements are filed with a regulatory body. Which of the above dates marks the end of the period covered by IAS 10?

5. If there is a public announcement of profit, or other information

6. There is a settlement, after the end of reporting period, of a court case that confirms that the undertaking had a present obligation, at the year end. You need to:

7. There is receipt of information, after the year end indicating that an asset was impaired at the year end. You need to:

8. There is receipt of information, after the year end indicating that the amount of a previously-recorded impairment loss for that asset needs to be adjusted. You need to:

9. You learn of the bankruptcy of a customer that occurs after the year end. You need to:

10. You learn of the determination after the year end of the cost of assets purchased. You need to:

11. You learn of a change to the proceeds from assets sold, before the year end. You need to:

12. You receive the calculation of the amount of profit-sharing payments, relating to the period of the financial statements, after the year end. You need to:

13. You are informed of a fraud, that shows that financial statements, that you are about to approve to be incorrect. You need to:

14. You learn of a decline in market value of investments, between the year end, and the date when the financial statements are approved for issue. You need to:

15. You make a major acquisition, between the year end, and the date when the financial statements are approved for issue. You need to:

16. You announce plans to reorganise your group, between the year end, and the date when the financial statements are approved for issue. The plans include the disposal of a major division. You need to:

17. Your company declares a dividend, between the year end, and the date when the financial statements are approved for issue. You need to:

18. Your board decide to sell the assets of the firm and liquidate it, between the year end, and the date when the financial statements are approved for issue. You need to:

19. A client goes into liquidation, between the year end, and the date when the financial statements are approved for issue. The client owes you a large amount of money, and your firm will not survive the loss. You need to:

20. A client goes into liquidation, between the year end, and the date when the financial statements are approved for issue. The client owes you a large amount of money. You do are unable to secure finance to ensure the firm’s survival before the financial statements are to be approved. You need to:

21. Your firm has been sued for anti-competitive behaviour. This has been denied by your firm, and there was only a contingent liability for $10 million your financial statements at 31st December 2004. On January 1st 2005, the court awards $10 million damages against your firm. You need to:

22. 5% of your assets are held in Euros. Your currency loses 1% of its value against the Euro, before the financial statements are approved. You need to:

23. Which one given below in not included in the objectives of IAS 10

24. XYZ company on examining events after current reporting period concludes that there are indications that going concern basis is not appropriate , entity shall

25. IAS 10 events after the reporting period should be applied

26. Only favorable events that occur between end of reporting period and the date when the financial statements are authorized for issue called events after reporting period.

27. Favorable and unfavorable events that occur between end of reporting period and the date when the financial statements are authorized for issue called events after reporting period.

28. IAS 10 does not deal with the following identified events

29. Board of directors of XYZ review annual financial statements and authorize for issue, after this financial statements are submitted to share holder for approval

30. An entity identifies adjusting events after reporting period as per IAS 10

31. An entity identifies non-adjusting events after reporting period as per IAS 10

32. If an entity declares dividends to holders of equity instruments after the reporting period, the entity shall not recognize those dividends as a liability at the end of the reporting period.