Question 1

In all cases prior period errors must be corrected retrospectively.

Accepted Answer

A) True 
 B)False

Question 2

The following is a listing of possible sets of financial statements:
I.$\quad$Consolidated financial statements of parent entities (those with subsidiaries) - uses consolidation.
II.$\quad$Separate financial statements of parent entities (single entity financial statements that report on the parent entity alone).
III.$\quad$Financial statements of entities that are not parents that apply equity accounting to investments in associates and jointly-controlled entities (single entity financial statements).
IV.$\quad$Separate financial statements of entities that are not parents that have investments in associates and jointly-controlled entities (single entity financial statements) - equity accounting not applied.
V.$\quad$Financial statements of an entity that is not a parent and does not have investments in jointly controlled entities.Neither equity accounting nor consolidation applied.
-Which of the following best reflects the sets of financial statements that under the Corporations Act must be included in the financial report of a small proprietary company:

Accepted Answer

A) II plus either I or III 
B) I and II, or III and IV, or V 
C) Only I or III 
D) none of I to V 
A) II plus either I or III 
B) I and II, or III and IV, or V 
C) Only I or III 
D) none of I to V

Question 3

A Directors' Declaration must include declarations about whether the financial statements and the notes:

Accepted Answer

A) $\begin{array}{llcc}
  \text {  Comply with } &  \text {  Give a true and fair } &\text {Comply with the conceptual framework }\
 \text {  AASBs} & \text {view}&  \text {(the Framework for the Preparation and} \
 \text {  } & \text {  } &\text { Presentation of Financial Statements and} \
 \text {  } & \text {  } & \text { SACs 1 and 2)}\
 \text { Yes } & \text {No}&\text {No}\
\end{array}$ 
B) $\begin{array}{ccc}
\text { Yes} & \text {No } & \text { No }\
\end{array}$ 
C) $\begin{array}{ccc}
\text {No } & \text { Yes } & \text { No }\
\end{array}$ 
D) $\begin{array}{llcc}
  \text { Yes } &&& \text {  Yes} &&&&& \text {  No}   \
\end{array}$ 
A) $\begin{array}{llcc}
  \text {  Comply with } &  \text {  Give a true and fair } &\text {Comply with the conceptual framework }\
 \text {  AASBs} & \text {view}&  \text {(the Framework for the Preparation and} \
 \text {  } & \text {  } &\text { Presentation of Financial Statements and} \
 \text {  } & \text {  } & \text { SACs 1 and 2)}\
 \text { Yes } & \text {No}&\text {No}\
\end{array}$ 
B) $\begin{array}{ccc}
\text { Yes} & \text {No } & \text { No }\
\end{array}$ 
C) $\begin{array}{ccc}
\text {No } & \text { Yes } & \text { No }\
\end{array}$ 
D) $\begin{array}{llcc}
  \text { Yes } &&& \text {  Yes} &&&&& \text {  No}   \
\end{array}$

Question 4

AASB 101 contains a general prohibition on the offsetting of (i) assets and liabilities and (ii) income (revenues and gains) and expenses.

Accepted Answer

A) True 
 B)False

Question 5

Under the Corporations Act, various types of financial reports are possible:
I$\quad$annual financial report
II$\quad$concise annual financial report
III$\quad$half year financial report
Which of the following statements best describes the obligations to present financial reports of a disclosing entity:

Accepted Answer

A) neither I, II nor III is required if it is also a proprietary company 
B) it must prepare both I and III and can prepare II 
C) it must send both I and II to shareholders 
D) need only prepare I 
A) neither I, II nor III is required if it is also a proprietary company 
B) it must prepare both I and III and can prepare II 
C) it must send both I and II to shareholders 
D) need only prepare I

Question 6

The annual report includes:
$\quad$Directors' Report $\quad$Auditors' Report $\quad$Prospectus

Accepted Answer

A) $\quad$$\quad$Yes$\quad$ $\quad$$\quad$$\quad$$\quad$Yes $\quad$$\quad$$\quad$$\quad$$\quad$No 
B) $\quad$$\quad$No $\quad$$\quad$$\quad$$\quad$$\quad$ Yes $\quad$$\quad$$\quad$$\quad$$\quad$No 
C) $\quad$$\quad$Yes $\quad$$\quad$$\quad$$\quad$$\quad$No $\quad$$\quad$$\quad$$\quad$$\quad$Yes 
D) $\quad$$\quad$No$\quad$$\quad$$\quad$$\quad$$\quad$ Yes$\quad$$\quad$$\quad$$\quad$$\quad$  Yes 
A) $\quad$$\quad$Yes$\quad$ $\quad$$\quad$$\quad$$\quad$Yes $\quad$$\quad$$\quad$$\quad$$\quad$No 
B) $\quad$$\quad$No $\quad$$\quad$$\quad$$\quad$$\quad$ Yes $\quad$$\quad$$\quad$$\quad$$\quad$No 
C) $\quad$$\quad$Yes $\quad$$\quad$$\quad$$\quad$$\quad$No $\quad$$\quad$$\quad$$\quad$$\quad$Yes 
D) $\quad$$\quad$No$\quad$$\quad$$\quad$$\quad$$\quad$ Yes$\quad$$\quad$$\quad$$\quad$$\quad$  Yes

Question 7

Under AASB 101 the financial statements include:

Accepted Answer

A) $\begin{array}{llcc}
  \text {Directors' Report  } &  \text { Cash Flow Statement } & \text {Notes to the   }  \
 \text {  } & \text {  } & \text { financial statements } \
 \text {  } &\
 \text {Yes  } & \text { Yes } & \text { No } \

\end{array}$ 
B) $\begin{array}{llcc}
  \text {  No } &&&&& \text {  Yes} &&&&& \text {  No}   \
\end{array}$ 
C) $\begin{array}{llcc}
  \text {  Yes} &&&&& \text { No } &&&&& \text { Yes }   \
\end{array}$ 
D) $\begin{array}{llcc}
  \text {  No} &&&&& \text {Yes   } &&&&& \text { Yes }   \
\end{array}$ 
A) $\begin{array}{llcc}
  \text {Directors' Report  } &  \text { Cash Flow Statement } & \text {Notes to the   }  \
 \text {  } & \text {  } & \text { financial statements } \
 \text {  } &\
 \text {Yes  } & \text { Yes } & \text { No } \

\end{array}$ 
B) $\begin{array}{llcc}
  \text {  No } &&&&& \text {  Yes} &&&&& \text {  No}   \
\end{array}$ 
C) $\begin{array}{llcc}
  \text {  Yes} &&&&& \text { No } &&&&& \text { Yes }   \
\end{array}$ 
D) $\begin{array}{llcc}
  \text {  No} &&&&& \text {Yes   } &&&&& \text { Yes }   \
\end{array}$

Question 8

Zoo Ltd, a disclosing entity, has a financial year end of 31 March.On 10 April 20X4, the auditors discovered some equipment in a remote warehouse that had not been recognised in Zoo Ltd's financial statements.This equipment had been Zoo Ltd's property for about five years.
These assets should:

Accepted Answer

A) be recognised in the financial statements for the financial year ended 31 March 20X4 
B) not be recognised in the financial statements 
C) be recognised in the financial statements for the financial year ended 31 March 20X5 
D) be recognised in the half year financial statements for the half year ended 30 September 20X4 
A) be recognised in the financial statements for the financial year ended 31 March 20X4 
B) not be recognised in the financial statements 
C) be recognised in the financial statements for the financial year ended 31 March 20X5 
D) be recognised in the half year financial statements for the half year ended 30 September 20X4

In all cases prior period errors must be corrected retrospectively.

A Directors' Declaration must include declarations about whether the financial statements and the notes:

AASB 101 contains a general prohibition on the offsetting of (i) assets and liabilities and (ii) income (revenues and gains) and expenses.

The annual report includes: $\quad$ Directors' Report $\quad$ Auditors' Report $\quad$ Prospectus

Under AASB 101 the financial statements include:

Zoo Ltd, a disclosing entity, has a financial year end of 31 March.On 10 April 20X4, the auditors discovered some equipment in a remote warehouse that had not been recognised in Zoo Ltd's financial statements.This equipment had been Zoo Ltd's property for about five years. These assets should:

Companies and Corporate Regulation

Objectives of Company Reporting, Conceptual Elements and Terminology

Forming a Company and Issuing Shares

Profits, Reserve and Distributions to Owners

Reorganisation of Share Capital

Debt Securities

Foreign Currency Transactions and an Introduction to Hedging

Advanced Asset and Liability Issues

Income Tax

Reports and Disclosures Ii: the Financial Statements

Receivership and Voluntary Administration

Liquidations

External Administration Reports and Accounts

Investments in New Assets; Introduction to Business Combinations and Associates

The Corporate Group

Acquisition Method Introduction and Substitution

Acquisition Method Application After Control Date

Intra-Group Transactions

Direct Non-Controlling Interest

Changes to Parent Investment in Subsidiaries

Indirect Interest

Translation of Foreign Currency Statements

Consolidated Cash Flow Statements

Equity Accounting Expanded and Joint Ventures

Segment Reporting

Filters

Exam 10: Reports and Disclosures I: Overview

In all cases prior period errors must be corrected retrospectively.

A Directors' Declaration must include declarations about whether the financial statements and the notes:

AASB 101 contains a general prohibition on the offsetting of (i) assets and liabilities and (ii) income (revenues and gains) and expenses.

The annual report includes: \quad Directors' Report \quad Auditors' Report \quad Prospectus

Under AASB 101 the financial statements include:

Zoo Ltd, a disclosing entity, has a financial year end of 31 March.On 10 April 20X4, the auditors discovered some equipment in a remote warehouse that had not been recognised in Zoo Ltd's financial statements.This equipment had been Zoo Ltd's property for about five years. These assets should:

Companies and Corporate Regulation

Objectives of Company Reporting, Conceptual Elements and Terminology

Forming a Company and Issuing Shares

Profits, Reserve and Distributions to Owners

Reorganisation of Share Capital

Debt Securities

Foreign Currency Transactions and an Introduction to Hedging

Advanced Asset and Liability Issues

Income Tax

Reports and Disclosures Ii: the Financial Statements

Receivership and Voluntary Administration

Liquidations

External Administration Reports and Accounts

Investments in New Assets; Introduction to Business Combinations and Associates

The Corporate Group

Acquisition Method Introduction and Substitution

Acquisition Method Application After Control Date

Intra-Group Transactions

Direct Non-Controlling Interest

Changes to Parent Investment in Subsidiaries

Indirect Interest

Translation of Foreign Currency Statements

Consolidated Cash Flow Statements

Equity Accounting Expanded and Joint Ventures

Segment Reporting

Filters

The annual report includes: $\quad$ Directors' Report $\quad$ Auditors' Report $\quad$ Prospectus