Disclosure Notes (Y7C18)
1 | Which of the following best describes the purpose of disclosure notes in the financial statements? | |
A | To provide more detail for the users of financial statements about the information in the statement of financial position and statement of profit or loss and other comprehensive income. | |
B | To allow companies to present their financial results in a more favourable way by only disclosing some things in the notes and not on the main financial statements. | |
C | To give all the detail of all the transactions that occurred during the period because the main financial statements only present a summary. | |
D | To explain the accounting treatment adopted where management have chosen not to apply accounting standards. | |
2 | For which class or classes of assets should a company disclose in the notes to the financial statements a reconciliation of the opening carrying amount to the closing carrying amount, showing the movements in the period? | |
1 | Cash | |
2 | Intangible assets | |
3 | Tangible non-current ass | |
4 | Trade receivables | |
A | 3 only | |
B | 2 and 3 only | |
C | 1 and 4 only | |
D | 1 only | |
3 | Which of the following should be disclosed in the note to the financial statements for inventories? | |
1 | The date the inventories were purchased or manufactured and/or how long they have been held as inventories | |
2 | The amount of inventories carried at net realisable value | |
3 | The accounting policies adopted in measuring inventories | |
4 | The useful life of the inventories | |
A | 3 only | |
B | 2 and 3 only | |
C | 1 and 4 only | |
D | 1 only | |
4 | Which of the following should be disclosed in the note to the financial statements for intangible assets? | |
1 | The method of amortisation used | |
2 | A reconciliation of the carrying amount at the beginning and end of the period | |
3 | The useful life of the assets | |
4 | The net realisable value of any deferred development costs capitalised | |
A | 1, 2 and 3 only | |
B | 2 and 3 only | |
C | 2, 3 and 4 only | |
D | 2 only | |
5 | Which of the following statements is/are correct? | |
1 | IAS 37 requires disclosure in the notes to the financial statements of the uncertainties affecting the outcome of a provision | |
2 | IAS 10 requires disclosure of the nature and financial effect of a non-adjusting event after the reporting period in the notes to the financial statements | |
A | 1 only | |
B | 2 only | |
C | Both 1 and 2 | |
D | Neither 1 nor 2 | |
6 | A certain IFRS requires that the following disclosure is made in a note to the financial statements: | |
(i) | A brief description of its nature | |
(ii) | Where practicable an estimate of the financial effect | |
(iii) | An indication of the uncertainties relating to the amount or timing of any outflow | |
(iv) | The possibility of any reimbursement | |
Which of the following does the above disclosure apply to? | ||
A | Provisions | |
B | Contingent liabilities | |
C | Contingent assets | |
D | Events after the reporting period | |
7 | Which of the following should be disclosed in the note to the financial statements for tangible noncurrent assets? | |
1 | The market value of all assets classified as tangible non-current assets, whether they have been revalued or not | |
2 | A reconciliation of the carrying amount of non-current assets at the beginning and end of the period | |
3 | For revalued assets, the methods and significant assumptions applied in estimating the value | |
4 | For revalued assets, the carrying amount of each class of assets that would have been included in the financial statements had the assets been carried at cost less depreciation | |
A | 1, 2 and 3 only | |
B | 2 and 3 only | |
C | 2, 3 and 4 only | |
D | 2 only | |
8 | Which of the following are required as disclosures by IAS 2 Inventories? | |
1 | The amount of write-downs of inventories in the period that have been recognised as an expense | |
2 | The original cost of inventories that are carried at net realisable value | |
3 | The carrying amount of inventories classified by type (for example, raw materials, work in progress) | |
A | 1 and 2 only | |
B | 1 and 3 only | |
C | 2 and 3 only | |
D | 1, 2 and 3 | |
9 | Which one of the following is a disclosure about non-adjusting events required by IAS 10 Events after the reporting period? | |
A | Dividends declared before the end of the reporting period and paid after the end of the reporting period | |
B | The nature of both material and non-material non-adjusting events | |
C | The date that the non-adjusting event occurred | |
D | An estimate of the financial effect of the event, unless a reasonable estimate cannot be made |