Question 1

What does the carrying value of tangible capital assets represent to government?

Accepted Answer

A) Source of future cash flows from the capital assets 
B) Tax value of the capital assets 
C) Acquisition cost of Crown assets 
D) Unexpired service potential of the capital assets 
A) Source of future cash flows from the capital assets 
B) Tax value of the capital assets 
C) Acquisition cost of Crown assets 
D) Unexpired service potential of the capital assets D

Question 2

PSAB defines a government organization as one that is "controlled by the government". Explain what is meant by "control" and how this is assessed for governments. Explain how controlled entities are reported.

Accepted Answer

Control is determined by examining persuasive evidence in addition to seven other potential indicators, if required. Persuasive evidence of control may be indicated if the government has:
1. the power to appoint a majority of the members of the governing body;
2. control and access over the assets of the organization;
3. majority number of votes; or
4. single authority to dissolve the organization.
Dependency on government funding or regulatory powers by the government does not necessarily indicate control. If the control is over OGOs or other governments, then consolidation is required.
The cost basis is used for investments made in entities that are not controlled by the government but represent portfolio investments.
Where the government has control of a GBE, the investment is reported on a modified equity basis.

Question 3

On what statement does the amortization of tangible capital assets appear as a reconciling item?

Accepted Answer

A) Statement of financial position 
B) Statement of operations 
C) Statement of changes in net debt 
D) Statement of cash flows 
A) Statement of financial position 
B) Statement of operations 
C) Statement of changes in net debt 
D) Statement of cash flows C

Question 4

What reporting basis should Wind Power Plus, a government business enterprise, use?

Accepted Answer

A) Cost method 
B) Equity method 
C) Modified equity method 
D) Consolidation 
A) Cost method 
B) Equity method 
C) Modified equity method 
D) Consolidation

Question 5

Based on the organizations' objectives, which of the following government organizations can choose to report under the CICA PSA Handbook or IFRS?

Accepted Answer

A) Local governments 
B) Government business enterprises 
C) Government not-for-profit organizations 
D) Other government organizations 
A) Local governments 
B) Government business enterprises 
C) Government not-for-profit organizations 
D) Other government organizations

Question 6

Clearly distinguish between a government business organization and a non-business government organization.

Accepted Answer

In contrast with normal government depar

Question 7

Which financial statements are recommended by the PSAB for presentation by governments?

Accepted Answer

A) Statement of financial position, statement of operations, statement of changes in net debt, statement of remeasurement gains and losses, and statement of cash flows 
B) Statement of financial position, statement of operations, statement of remeasurement gains and losses, and statement of net debt 
C) Statement of financial position, statement of cash flows, and statement of operations only 
D) Statement of financial position, statement of cash flows, and statement of net debt only 
A) Statement of financial position, statement of operations, statement of changes in net debt, statement of remeasurement gains and losses, and statement of cash flows 
B) Statement of financial position, statement of operations, statement of remeasurement gains and losses, and statement of net debt 
C) Statement of financial position, statement of cash flows, and statement of operations only 
D) Statement of financial position, statement of cash flows, and statement of net debt only

Question 8

To enhance users' abilities to evaluate a government's financial results, budget numbers are included on some of the financial statements. Which statements would include the budget numbers?

Accepted Answer

A) Statement of operations and statement of changes in net debt 
B) Statement of operations and statement of cash flows 
C) Statement of financial position and statement of operations 
D) Statement of financial position and statement of changes in net debt 
A) Statement of operations and statement of changes in net debt 
B) Statement of operations and statement of cash flows 
C) Statement of financial position and statement of operations 
D) Statement of financial position and statement of changes in net debt

Question 9

The Public Sector Accounting Board (PSAB)has identified a number of characteristics that differentiates governmental reporting from private sector reporting. Which of the following is one of those characteristics?

Accepted Answer

A) The government's goal is to make a surplus. 
B) The focus of governmental capital spending is to maximize returns. 
C) Tangible capital assets are viewed differently by governments. 
D) Governments have limited debt capacity. 
A) The government's goal is to make a surplus. 
B) The focus of governmental capital spending is to maximize returns. 
C) Tangible capital assets are viewed differently by governments. 
D) Governments have limited debt capacity.

Question 10

What does the net debt indicate on a government's statement of financial position?

Accepted Answer

A) How much revenue the government must raise to cover its past spending 
B) The government's ability to provide future services and programs 
C) The government's financial position 
D) The government's ability to raise revenues to meet its current year expenditures 
A) How much revenue the government must raise to cover its past spending 
B) The government's ability to provide future services and programs 
C) The government's financial position 
D) The government's ability to raise revenues to meet its current year expenditures

Question 11

What basis does the present government reporting method use?

Accepted Answer

A) Cash 
B) Modified cash 
C) Modified accrual 
D) Full accrual 
A) Cash 
B) Modified cash 
C) Modified accrual 
D) Full accrual

Question 12

Which of the following are qualitative characteristics of good financial reports for governments?

Accepted Answer

A) Comparability among years, consistency among governments, completeness, and timeliness 
B) Comparability among governments, consistency between years, completeness, and timeliness 
C) Comparability with business, consistency between years, completeness, and timeliness 
D) Full disclosure, transparency, accuracy, and audit 
A) Comparability among years, consistency among governments, completeness, and timeliness 
B) Comparability among governments, consistency between years, completeness, and timeliness 
C) Comparability with business, consistency between years, completeness, and timeliness 
D) Full disclosure, transparency, accuracy, and audit

Question 13

One of the objectives of government reporting is to allow users the ability to assess the government's finances. A statement of changes in net debt is required. Describe what is meant by "net debt" and why this is an important indicator of the government's financial position. What information does this statement provide?

Accepted Answer

Net debt is the total of the government'

Question 14

Which of the following statements about the valuation of Crown property on the statement of financial position is true?

Accepted Answer

A) Crown property is valued at acquisition cost. 
B) Crown property is valued at fair market value. 
C) Crown property is valued at its depreciated value. 
D) Crown property is not recognized on the financial statements. 
A) Crown property is valued at acquisition cost. 
B) Crown property is valued at fair market value. 
C) Crown property is valued at its depreciated value. 
D) Crown property is not recognized on the financial statements.

Question 15

Describe the major differences in characteristics that exist when comparing a large government agency to a large public company.

Accepted Answer

General characteristic comparison:
• The

Question 16

What is impairment testing of tangible capital assets based on?

Accepted Answer

A) Impairment of future cash flows 
B) Impairment of future service potential 
C) Impairment of anticipated residual value 
D) Impairment of net present value 
A) Impairment of future cash flows 
B) Impairment of future service potential 
C) Impairment of anticipated residual value 
D) Impairment of net present value

Question 17

Which governments or government organizations are required to follow the PSA Handbook for financial reporting purposes?

Accepted Answer

A) Governments and government business enterprises 
B) Governments and government not-for-profit organizations 
C) Government business enterprises and government not-for-profit organizations 
D) Government not-for-profit organizations and other government organizations 
A) Governments and government business enterprises 
B) Governments and government not-for-profit organizations 
C) Government business enterprises and government not-for-profit organizations 
D) Government not-for-profit organizations and other government organizations

Question 18

Research surveys have suggested that there are several qualitative characteristics that are desirable in published financial reports of governmental units. Explain why comparability is so important to users and what this means for users.

Accepted Answer

The four major qualitative characteristi

Question 19

Under the modified equity method, government business enterprises must follow ________.

Accepted Answer

A) the PSA Handbook 
B) IFRS 
C) ASPE 
D) either the PSA Handbook or IFRS 
A) the PSA Handbook 
B) IFRS 
C) ASPE 
D) either the PSA Handbook or IFRS

Question 20

What is reported on the statement of remeasurement gains and losses?

Accepted Answer

A) Any realized remeasurement gains and losses 
B) Any unrealized remeasurement gains and losses 
C) Realized and unrealized gains and losses arising from foreign currency translations 
D) Realized gains and losses arising from the disposal of portfolio investments 
A) Any realized remeasurement gains and losses 
B) Any unrealized remeasurement gains and losses 
C) Realized and unrealized gains and losses arising from foreign currency translations 
D) Realized gains and losses arising from the disposal of portfolio investments

What does the carrying value of tangible capital assets represent to government?

PSAB defines a government organization as one that is "controlled by the government". Explain what is meant by "control" and how this is assessed for governments. Explain how controlled entities are reported.

On what statement does the amortization of tangible capital assets appear as a reconciling item?

What reporting basis should Wind Power Plus, a government business enterprise, use?

Based on the organizations' objectives, which of the following government organizations can choose to report under the CICA PSA Handbook or IFRS?

Clearly distinguish between a government business organization and a non-business government organization.

Which financial statements are recommended by the PSAB for presentation by governments?

To enhance users' abilities to evaluate a government's financial results, budget numbers are included on some of the financial statements. Which statements would include the budget numbers?

The Public Sector Accounting Board (PSAB)has identified a number of characteristics that differentiates governmental reporting from private sector reporting. Which of the following is one of those characteristics?

What does the net debt indicate on a government's statement of financial position?

What basis does the present government reporting method use?

Which of the following are qualitative characteristics of good financial reports for governments?

Which of the following statements about the valuation of Crown property on the statement of financial position is true?

Describe the major differences in characteristics that exist when comparing a large government agency to a large public company.

What is impairment testing of tangible capital assets based on?

Which governments or government organizations are required to follow the PSA Handbook for financial reporting purposes?

Research surveys have suggested that there are several qualitative characteristics that are desirable in published financial reports of governmental units. Explain why comparability is so important to users and what this means for users.

Under the modified equity method, government business enterprises must follow ________.

What is reported on the statement of remeasurement gains and losses?

Setting the Stage

Intercorporate Equity Investments: an Introduction

Business Combinations

Appendix A: AIncome Tax Allocation

Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Appendix A: Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Appendix B: Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Consolidation of Non-Wholly Owned Subsidiaries

Appendix A: Step Purchases

Appendix B: Decreases in Ownership Interest

Subsequent-Year Consolidations: General Approach

Appendix A: Preferred and Restricted Shares of Investee Corporation

Appendix B: Intercompany Bond Holdings

Segment and Interim Reporting

Foreign Currency Transactions and Hedges

Reporting Foreign Operations

Financial Reporting for Not-For-Profit Organizations

Appendix A: Fund Accounting

Filters

Exam 11: Public Sector Financial Reporting

What does the carrying value of tangible capital assets represent to government?

PSAB defines a government organization as one that is "controlled by the government". Explain what is meant by "control" and how this is assessed for governments. Explain how controlled entities are reported.

On what statement does the amortization of tangible capital assets appear as a reconciling item?

What reporting basis should Wind Power Plus, a government business enterprise, use?

Based on the organizations' objectives, which of the following government organizations can choose to report under the CICA PSA Handbook or IFRS?

Clearly distinguish between a government business organization and a non-business government organization.

Which financial statements are recommended by the PSAB for presentation by governments?

To enhance users' abilities to evaluate a government's financial results, budget numbers are included on some of the financial statements. Which statements would include the budget numbers?

The Public Sector Accounting Board (PSAB)has identified a number of characteristics that differentiates governmental reporting from private sector reporting. Which of the following is one of those characteristics?

What does the net debt indicate on a government's statement of financial position?

What basis does the present government reporting method use?

Which of the following are qualitative characteristics of good financial reports for governments?

Which of the following statements about the valuation of Crown property on the statement of financial position is true?

Describe the major differences in characteristics that exist when comparing a large government agency to a large public company.

What is impairment testing of tangible capital assets based on?

Which governments or government organizations are required to follow the PSA Handbook for financial reporting purposes?

Research surveys have suggested that there are several qualitative characteristics that are desirable in published financial reports of governmental units. Explain why comparability is so important to users and what this means for users.

Under the modified equity method, government business enterprises must follow ________.

What is reported on the statement of remeasurement gains and losses?

Setting the Stage

Intercorporate Equity Investments: an Introduction

Business Combinations

Appendix A: AIncome Tax Allocation

Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Appendix A: Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Appendix B: Wholly Owned Subsidiaries: Reporting Subsequent Acquisitions

Consolidation of Non-Wholly Owned Subsidiaries

Appendix A: Step Purchases

Appendix B: Decreases in Ownership Interest

Subsequent-Year Consolidations: General Approach

Appendix A: Preferred and Restricted Shares of Investee Corporation

Appendix B: Intercompany Bond Holdings

Segment and Interim Reporting

Foreign Currency Transactions and Hedges

Reporting Foreign Operations

Financial Reporting for Not-For-Profit Organizations

Appendix A: Fund Accounting

Filters