Question 1

Which of the following segment information must be disclosed?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 2

Which of the following is not included among requirements for interim financial reports for public companies?

Accepted Answer

A) Statement of comprehensive income 
B) Statement of financial position 
C) Statement of cash flows 
D) Summary of significant accounting policies 
A) Statement of comprehensive income 
B) Statement of financial position 
C) Statement of cash flows 
D) Summary of significant accounting policies

Question 3

Explain what entity-wide disclosures are required by a public company.Why is this disclosure required under IFRS8 and how is this information useful?

Accepted Answer

Entity wide disclosures are required to

Question 4

Sparky Limited (SPL)is a public company and must file interim statements.SPL experienced the following events during the 2nd quarter of 20X11:
1.In the 1st quarter,an impairment loss on goodwill was recognized in the amount of $5 million.The circumstances leading to this loss have now changed,and the value of the goodwill is once again above its original cost.
2.During the 2nd quarter,the company shut down its manufacturing plant for annual maintenance.The annual maintenance costs totalled $7.5 million in the quarter.
3.As per a lease agreement,the company must pay additional rent charged at 3% of sales if annual sales are greater than $12 million.The contingent rent is payable on the total annual sales.The company reported sales in the 1st quarter related to this leased location of $3 million and in the 2nd quarter sales totalled $4 million.It is expected that sales for the 3rd and 4th quarter will be $5 million and $3 million,respectively.
4.The company made a large sale to a new customer for $6 million.This sale relates to a contract of services that will be provided over the next nine months,which commences in the first month of the 2nd interim period.
Required:
For each event,indicate the impact on the interim statement for the 3rd quarter using the guidance required by IAS 34.

Accepted Answer

The discussion below outlines the treatm

Question 5

What is the main objective in disclosing segmented information?

Accepted Answer

A) It provides a broader view of the entire economic entity controlled by the parent. 
B) It provides information to assess the risk of different operating units. 
C) It increases the income of different operating segments. 
D) It reduces the cost of financial reporting. 
A) It provides a broader view of the entire economic entity controlled by the parent. 
B) It provides information to assess the risk of different operating units. 
C) It increases the income of different operating segments. 
D) It reduces the cost of financial reporting.

Question 6

Under IAS 34,which of the following costs is not viewed as a constructive obligation?

Accepted Answer

A) Contingent lease payments in excess of a contractual base amount 
B) Year-end bonuses 
C) Quantity discounts or rebates 
D) Maintenance costs 
A) Contingent lease payments in excess of a contractual base amount 
B) Year-end bonuses 
C) Quantity discounts or rebates 
D) Maintenance costs

Question 7

Explain what an "operating segment" is.
For each of the examples below,determine what operating segments the company has and why?
a.A beverage company sells beer,wine and bottled water.The beer and wine are sold through liquor store outlets and directly to restaurants.The bottled water is sold to retailers.
b.A company sells leather apparel.The company designs,manufactures and retails these goods through their own retail outlets.There are primarily three divisions: (1)designing and sourcing and purchasing various raw materials;(2)manufacturing;and (3)distribution and retail.The design and raw materials flow through to the manufacturing division.All output of the manufacturing division is transferred to the distribution and retail division.Only the distribution and retail division has external revenues.The other divisions have internal revenues only.

Accepted Answer

An operating segment is defined as havin

Question 8

IFRS 8 requires the disclosure of certain key information such as an organization's major customers and geographic areas of operations.Why are these disclosures required?

Accepted Answer

A) To demonstrate that the chief operating decision-maker has made prudent decisions 
B) To allow users to assess potential business risks 
C) To provide sufficient information to creditors 
D) To allow users to see that the poor performance of one segment is usually offset by the good performance of other segments 
A) To demonstrate that the chief operating decision-maker has made prudent decisions 
B) To allow users to assess potential business risks 
C) To provide sufficient information to creditors 
D) To allow users to see that the poor performance of one segment is usually offset by the good performance of other segments

Question 9

Which organizations are required to issue interim financial statements?

Accepted Answer

A) Public companies 
B) Private enterprises 
C) Both public companies and private enterprises 
D) No organizations are required to issue interim financial statements. 
A) Public companies 
B) Private enterprises 
C) Both public companies and private enterprises 
D) No organizations are required to issue interim financial statements.

Question 10

80% of an organization's consolidated external revenues are disclosed by separate operating segments.The remaining segments do not meet any of the reportable segment thresholds.Which of the following is true about the remaining segments?

Accepted Answer

A) They must still be reported as separate segments. 
B) They can be combined only if they have similar economic characteristics. 
C) They can be combined only if the segments are horizontally or vertically integrated. 
D) They can be combined and classified as "other". 
A) They must still be reported as separate segments. 
B) They can be combined only if they have similar economic characteristics. 
C) They can be combined only if the segments are horizontally or vertically integrated. 
D) They can be combined and classified as "other".

Question 11

The Alfred Company has operations in several international regions.These regions reported the following information:   
Which of these segments are reportable? Fully document all supporting calculations.

Accepted Answer

Revenue test @#IMG-DLM& Therefore,all se

Question 12

During the first quarter of the company's fiscal year,HA Inc.paid $100,000 to an arbitrator who assisted in negotiating an end to a strike by factory workers and $200,000 for annual property taxes.How much of these costs should be expensed in the first quarter under the discrete approach and under the integral approach?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 13

The thresholds for segmental financial reporting exclude ________.

Accepted Answer

A) 10% of total internal and external revenues 
B) 10% of total internal and external expenses 
C) 10% of total assets 
D) 10% of the absolute value of the larger of aggregate segment profits or aggregate segment losses 
A) 10% of total internal and external revenues 
B) 10% of total internal and external expenses 
C) 10% of total assets 
D) 10% of the absolute value of the larger of aggregate segment profits or aggregate segment losses

Question 14

Rules for interim reporting require that comparative information be presented.What comparative information should the current statement of financial position include?

Accepted Answer

A) The same quarter,last year 
B) The immediate preceding quarter 
C) The year end,last year 
D) As budgeted for the period 
A) The same quarter,last year 
B) The immediate preceding quarter 
C) The year end,last year 
D) As budgeted for the period

Question 15

Blue Sky Inc.(BSI)is a public company which is required to file interim statements on a quarterly basis.BSI has a loss carryforward available of $150,000 which has not been recognized as a deferred tax asset.In the first interim period,the company earns $80,000,and it is expected that it will earn the following amounts in each of the next three quarters: $50,000 in quarter 2,$170,000 in quarter 3 and $200,000 in quarter 4.The company pays a tax rate of 30%,excluding any loss carryforwards.
Required:
Calculate the tax expense for each interim period assuming that the company follows the requirements of IAS 34.

Accepted Answer

The amount of tax expected to be paid fo

Question 16

Under the discrete approach to the preparation of interim,which of the following statements is true?

Accepted Answer

A) Annual expenses are treated as a proportionate part of annual earnings. 
B) Income taxes are treated as a cumulative expense. 
C) Temporary differences giving rise to future income taxes are allocated to interim periods. 
D) Expenses are allocated in a way to show the organization's likely annualized costs. 
A) Annual expenses are treated as a proportionate part of annual earnings. 
B) Income taxes are treated as a cumulative expense. 
C) Temporary differences giving rise to future income taxes are allocated to interim periods. 
D) Expenses are allocated in a way to show the organization's likely annualized costs.

Question 17

Which of the following organizations does IFRS 8 not apply to?

Accepted Answer

A) Banks 
B) Mutual life insurance companies 
C) Private companies 
D) Cooperative business enterprises 
A) Banks 
B) Mutual life insurance companies 
C) Private companies 
D) Cooperative business enterprises

Question 18

Which of the following statements about interim financial statements for public companies is true?

Accepted Answer

A) Interim financial statements must be audited. 
B) Interim financial statements should be in a format consistent with the year-end financial statements. 
C) Interim financial statements must have the same level of detail as the annual financial statements. 
D) Interim financial statements do not have to be in full compliance with IFRS. 
A) Interim financial statements must be audited. 
B) Interim financial statements should be in a format consistent with the year-end financial statements. 
C) Interim financial statements must have the same level of detail as the annual financial statements. 
D) Interim financial statements do not have to be in full compliance with IFRS.

Question 19

With respect to interim financial statements,which of the following is not dictated by IFRS?

Accepted Answer

A) Content 
B) Identification of recognition principles 
C) Identification of measurement principles 
D) Frequency of preparation 
A) Content 
B) Identification of recognition principles 
C) Identification of measurement principles 
D) Frequency of preparation

Question 20

The following information on sales is available for the company's three operating segments:
 
Which of the operating segments must be reported separately?

Accepted Answer

A) Only Segment C 
B) Only Segments B and C 
C) Only Segments A and C 
D) Segments A,B and C 
A) Only Segment C 
B) Only Segments B and C 
C) Only Segments A and C 
D) Segments A,B and C

Which of the following segment information must be disclosed?

Which of the following is not included among requirements for interim financial reports for public companies?

Explain what entity-wide disclosures are required by a public company.Why is this disclosure required under IFRS8 and how is this information useful?

What is the main objective in disclosing segmented information?

Under IAS 34,which of the following costs is not viewed as a constructive obligation?

IFRS 8 requires the disclosure of certain key information such as an organization's major customers and geographic areas of operations.Why are these disclosures required?

Which organizations are required to issue interim financial statements?

80% of an organization's consolidated external revenues are disclosed by separate operating segments.The remaining segments do not meet any of the reportable segment thresholds.Which of the following is true about the remaining segments?

The Alfred Company has operations in several international regions.These regions reported the following information: Which of these segments are reportable? Fully document all supporting calculations.

The thresholds for segmental financial reporting exclude ________.

Rules for interim reporting require that comparative information be presented.What comparative information should the current statement of financial position include?

Under the discrete approach to the preparation of interim,which of the following statements is true?

Which of the following organizations does IFRS 8 not apply to?

Which of the following statements about interim financial statements for public companies is true?

With respect to interim financial statements,which of the following is not dictated by IFRS?

The following information on sales is available for the company's three operating segments: Which of the operating segments must be reported separately?

Setting the Stage

Intercorporate Equity Investments: an Introduction

Business Combinations

Wholly-Owned Subsidiaries: Reporting Subsequent to Acquisition

Consolidation of Non-Wholly Owned Subsidiaries

Subsequent-Year Consolidations: General Approach

Foreign Currency Transactions and Hedges

Reporting Foreign Operations

Financial Reporting for Not-For-Profit Organizations

Public Sector Financial Reporting

Income Tax Allocation

Income Tax Allocation Subsequent to Acquisition

Good will Impairment Test

Step Purchases

Decreases in Ownership Interest

Preferred and Restricted Shares of Investee Corporation

Intercompany Bond Holdings

Fund Accounting

Filters

Exam 7: Segmented and Interim Reporting

Which of the following segment information must be disclosed?

Which of the following is not included among requirements for interim financial reports for public companies?

Explain what entity-wide disclosures are required by a public company.Why is this disclosure required under IFRS8 and how is this information useful?

What is the main objective in disclosing segmented information?

Under IAS 34,which of the following costs is not viewed as a constructive obligation?

IFRS 8 requires the disclosure of certain key information such as an organization's major customers and geographic areas of operations.Why are these disclosures required?

Which organizations are required to issue interim financial statements?

80% of an organization's consolidated external revenues are disclosed by separate operating segments.The remaining segments do not meet any of the reportable segment thresholds.Which of the following is true about the remaining segments?

The Alfred Company has operations in several international regions.These regions reported the following information: Which of these segments are reportable? Fully document all supporting calculations.

The thresholds for segmental financial reporting exclude ________.

Rules for interim reporting require that comparative information be presented.What comparative information should the current statement of financial position include?

Under the discrete approach to the preparation of interim,which of the following statements is true?

Which of the following organizations does IFRS 8 not apply to?

Which of the following statements about interim financial statements for public companies is true?

With respect to interim financial statements,which of the following is not dictated by IFRS?

The following information on sales is available for the company's three operating segments: Which of the operating segments must be reported separately?

Setting the Stage

Intercorporate Equity Investments: an Introduction

Business Combinations

Wholly-Owned Subsidiaries: Reporting Subsequent to Acquisition

Consolidation of Non-Wholly Owned Subsidiaries

Subsequent-Year Consolidations: General Approach

Foreign Currency Transactions and Hedges

Reporting Foreign Operations

Financial Reporting for Not-For-Profit Organizations

Public Sector Financial Reporting

Income Tax Allocation

Income Tax Allocation Subsequent to Acquisition

Good will Impairment Test

Step Purchases

Decreases in Ownership Interest

Preferred and Restricted Shares of Investee Corporation

Intercompany Bond Holdings

Fund Accounting

Filters