Question 1

Under AASB 101 profit or loss attributable to non-controlling interests is prescribed for presentation in:

Accepted Answer

A)  an equity statement. 
B)  a statement of financial position. 
C)  a statement of profit or loss and other comprehensive income. 
D)  a statement of cash flows. 
A)  an equity statement. 
B)  a statement of financial position. 
C)  a statement of profit or loss and other comprehensive income. 
D)  a statement of cash flows. C

Question 2

In relation to 'retained earnings', AASB 101 mandates the following disclosures:
I - Any changes during the reporting period.
II - The related tax adjustments in respect to any changes during the period.
III - The beginning balance.
IV - The balance at reporting date.

Accepted Answer

A)  I, II, III and IV. 
B)  II, III and IV only. 
C)  I, III and IV only. 
D)  III and IV only. 
A)  I, II, III and IV. 
B)  II, III and IV only. 
C)  I, III and IV only. 
D)  III and IV only. C

Question 3

Items that are dissimilar in nature must be presented separately in financial statements unless:

Accepted Answer

A)  they are immaterial. 
B)  they are financial items in which case they can be off-set. 
C)  the directors approve of an aggregation of the items. 
D)  the auditors approval to aggregate the items is obtained. 
A)  they are immaterial. 
B)  they are financial items in which case they can be off-set. 
C)  the directors approve of an aggregation of the items. 
D)  the auditors approval to aggregate the items is obtained. A

Question 4

Under AASB 101, financial statements must be prepared and presented at least:

Accepted Answer

A)  annually. 
B)  half-yearly. 
C)  each three month. 
D)  at the end of each month of operations. 
A)  annually. 
B)  half-yearly. 
C)  each three month. 
D)  at the end of each month of operations.

Question 5

The primary source of information about an entity's financial position is to be found in its:

Accepted Answer

A)  statement of profit or loss and other comprehensive income. 
B)  statement of financial position. 
C)  statement of changes in equity. 
D)  statement of cash flows. 
A)  statement of profit or loss and other comprehensive income. 
B)  statement of financial position. 
C)  statement of changes in equity. 
D)  statement of cash flows.

Question 6

Typically industries where operating cycles may exceed twelve months include:

Accepted Answer

A)  food preparation. 
B)  manufacturing. 
C)  retail. 
D)  real estate development. 
A)  food preparation. 
B)  manufacturing. 
C)  retail. 
D)  real estate development.

Question 7

Which of the following items, if it exists, must be presented as a line item in the statement of financial position?

Accepted Answer

A)  Trade and other receivables. 
B)  Revenue. 
C)  Cost of sales. 
D)  Share of profit of associates. 
A)  Trade and other receivables. 
B)  Revenue. 
C)  Cost of sales. 
D)  Share of profit of associates.

Question 8

Included in a statement of changes in equity are the following items:

Accepted Answer

A)  I, II & III only. 
B)  II, III and IV only. 
C)  I, II and IV only. 
D)  I, II, III and IV. 
A)  I, II & III only. 
B)  II, III and IV only. 
C)  I, II and IV only. 
D)  I, II, III and IV.

Question 9

According to AASB 101, a required format for the presentation of a statement of financial position is:

Accepted Answer

A)  not prescribed and no guidance is provided in the standard. 
B)  not prescribed but guidance is provided in the standard for a suitable format. 
C)  prescribed by the standard. 
D)  not prescribed by the standard but details are found in the Corporations Act. 
A)  not prescribed and no guidance is provided in the standard. 
B)  not prescribed but guidance is provided in the standard for a suitable format. 
C)  prescribed by the standard. 
D)  not prescribed by the standard but details are found in the Corporations Act.

Question 10

At reporting date for Year 1, Elpha Limited had a loan from its bankers that it expected to settle within three months. The loan term was renegotiated after reporting date and before the authorisation date of the financial statements, and the repayment date was extended by two years. For Year 1 financial statement presentation purposes this loan is classified by Elpha Limited as:

Accepted Answer

A)  a non-current liability. 
B)  a current liability. 
C)  a contingent liability. 
D)  an off-statement of financial position liability. 
A)  a non-current liability. 
B)  a current liability. 
C)  a contingent liability. 
D)  an off-statement of financial position liability.

Question 11

According to AASB 101, a required format for the presentation of the statement of profit or loss and other comprehensive income is:

Accepted Answer

A)  prescribed by the standard. 
B)  not prescribed and no guidance is provided in the standard for a suitable format. 
C)  not prescribed but guidance is provided in the standard for a suitable format. 
D)  prescribed by the standard and further details are found in the Corporations Act. 
A)  prescribed by the standard. 
B)  not prescribed and no guidance is provided in the standard for a suitable format. 
C)  not prescribed but guidance is provided in the standard for a suitable format. 
D)  prescribed by the standard and further details are found in the Corporations Act.

Question 12

Which of the following items, if it exists, does NOT have to be presented as a line item on the face of a statement of profit or loss and other comprehensive income?

Accepted Answer

A)  Revenue. 
B)  Closing inventories. 
C)  Profit or loss attributable to non-controlling interests. 
D)  Post-tax profit or loss of discontinued operations. 
A)  Revenue. 
B)  Closing inventories. 
C)  Profit or loss attributable to non-controlling interests. 
D)  Post-tax profit or loss of discontinued operations.

Question 13

In respect to the statement of profit or loss and other comprehensive income of an entity, AASB 101 prescribes:

Accepted Answer

A)  a fixed format for the presentation of items in the statement of profit or loss and other comprehensive income. 
B)  line items that are considered to be of sufficient importance to warrant presentation. 
C)  the presentation of line items of revenue, but not of income. 
D)  the presentation of line items comprising total expenses, but not line items comprising total revenue. 
A)  a fixed format for the presentation of items in the statement of profit or loss and other comprehensive income. 
B)  line items that are considered to be of sufficient importance to warrant presentation. 
C)  the presentation of line items of revenue, but not of income. 
D)  the presentation of line items comprising total expenses, but not line items comprising total revenue.

Question 14

The following are normally presented in a statement of financial position as current items:

Accepted Answer

A)  deferred tax liabilities. 
B)  accounts payable. 
C)  deferred tax assets. 
D)  goodwill. 
A)  deferred tax liabilities. 
B)  accounts payable. 
C)  deferred tax assets. 
D)  goodwill.

Question 15

Under AASB 101 Presentation of Financial Statements, which of the following items is disclosed separately on the face of a statement of financial position?

Accepted Answer

A)  Income tax expense. 
B)  Revenue. 
C)  Investment property. 
D)  Profit attributable to members of the parent. 
A)  Income tax expense. 
B)  Revenue. 
C)  Investment property. 
D)  Profit attributable to members of the parent.

Question 16

AASB 101 requires the following items to be disclosed separately in the statement of profit or loss and other comprehensive income:
I - Cost of sales.
II - Revenue.
III - Finance costs.
IV - Share of the profit or loss from associates.
V - Tax expense relating to extraordinary events.
VI - Tax expense relating to ordinary activities.
VII - Profit or loss.

Accepted Answer

A)  I, II, VI and VII only. 
B)  I, II, III and V only. 
C)  II, III, IV, VI and VII only. 
D)  I, III, V and VII only. 
A)  I, II, VI and VII only. 
B)  I, II, III and V only. 
C)  II, III, IV, VI and VII only. 
D)  I, III, V and VII only.

Question 17

The requirements of AASB 101 apply to the following sets of financial statements:

Accepted Answer

A)  condensed financial statements. 
B)  interim financial statements. 
C)  general purpose financial statements. 
D)  special purpose financial statements. 
A)  condensed financial statements. 
B)  interim financial statements. 
C)  general purpose financial statements. 
D)  special purpose financial statements.

Question 18

If a liability satisfies the following criterion it will be classified as non-current:

Accepted Answer

A)  due to be settled within twelve months of the balance date. 
B)  expected to be settled in the entity's normal operating cycle. 
C)  due to be settled more than twelve months after the statement of financial position date. 
D)  it is held primarily for the purpose of being traded. 
A)  due to be settled within twelve months of the balance date. 
B)  expected to be settled in the entity's normal operating cycle. 
C)  due to be settled more than twelve months after the statement of financial position date. 
D)  it is held primarily for the purpose of being traded.

Question 19

Included in a statement of changes in equity are the following items:
I - Opening and closing balances.
II - Profit or loss for the period.
III - Gains or losses not recognised in the statement of profit or loss and other comprehensive income.
IV - New share issues.
V - Dividends paid.

Accepted Answer

A)  I, II & III only. 
B)  II, III and IV only. 
C)  I, IV and V only. 
D)  I, II, IV and V only. 
A)  I, II & III only. 
B)  II, III and IV only. 
C)  I, IV and V only. 
D)  I, II, IV and V only.

Question 20

Assets and liabilities, and income and expenses may be off-set if:

Accepted Answer

A)  they are financial assets and liabilities. 
B)  they are in respect of borrowing and lending activities such as interest revenue and interest expense. 
C)  required or permitted by a standard. 
D)  there is no tax effect. 
A)  they are financial assets and liabilities. 
B)  they are in respect of borrowing and lending activities such as interest revenue and interest expense. 
C)  required or permitted by a standard. 
D)  there is no tax effect.

Exam 16: Presentation of Financial Statements

Under AASB 101 profit or loss attributable to non-controlling interests is prescribed for presentation in:

In relation to 'retained earnings', AASB 101 mandates the following disclosures: I - Any changes during the reporting period. II - The related tax adjustments in respect to any changes during the period. III - The beginning balance. IV - The balance at reporting date.

Items that are dissimilar in nature must be presented separately in financial statements unless:

Under AASB 101, financial statements must be prepared and presented at least:

The primary source of information about an entity's financial position is to be found in its:

Typically industries where operating cycles may exceed twelve months include:

Which of the following items, if it exists, must be presented as a line item in the statement of financial position?

Included in a statement of changes in equity are the following items:

According to AASB 101, a required format for the presentation of a statement of financial position is:

According to AASB 101, a required format for the presentation of the statement of profit or loss and other comprehensive income is:

Which of the following items, if it exists, does NOT have to be presented as a line item on the face of a statement of profit or loss and other comprehensive income?

In respect to the statement of profit or loss and other comprehensive income of an entity, AASB 101 prescribes:

The following are normally presented in a statement of financial position as current items:

Under AASB 101 Presentation of Financial Statements, which of the following items is disclosed separately on the face of a statement of financial position?

The requirements of AASB 101 apply to the following sets of financial statements:

If a liability satisfies the following criterion it will be classified as non-current:

Included in a statement of changes in equity are the following items: I - Opening and closing balances. II - Profit or loss for the period. III - Gains or losses not recognised in the statement of profit or loss and other comprehensive income. IV - New share issues. V - Dividends paid.

Assets and liabilities, and income and expenses may be off-set if:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share-Based Payment

Revenue

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Reporting

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

Filters