Welcome to the IFRS Quiz Test your IFRS Knowlegde by taking this quiz! Submit details listed below to: 1. Get the answers to the questions 2. Get a free eBook - IFRS: Changing the financial landscape This IFRS test comprises of 20 multiple-choice questions that you can answer in few minutes and put your IFRS knowledge to good use! Name Email Phone no. Company Designation An entity breached the provision of a 3 year loan arrangement before the end of the reporting period due to which the liability has become payable on demand. However, after the reporting date but before approval of the financial statements, the lender has agreed not to demand payment as a consequence of the breach. How should the obligation be classified on the reporting date Financial liability - Current Financial liability - Non Current Non Financial liability - Current Non Financial liability - Non CurrentIn valuation of inventory the fixed production overheads are allocated based on which measure? Actual production Maximum capacity Normal capacity Average productionThe leasing standard Ind AS 116 is not applicable to short term lease and lease of assets which the underlying value is low? True FalseA contract is or contain a lease if it has which of the following feature? Right to Control the Asset Ownership of the Asset Right to Control the use of the Asset Right to bargain purchase at the end of Lease TermCompulsorily convertible preference share convertible at fixed number of shares will be classified as? Equity Liability Asset Compound instrumentCustomer buys an industrial AC and post-sales maintenance pack for USD 1,200. PQR sells the AC on its own for USD 1,000. PQR sells the maintenance pack on its own for USD 500. at what price should the revenue from AC be recorded? 1,000 400 800 1,200"Company XYZ bought a machine on 1.April. 2016 that helps them produce widgets. The machine cost $30,000 and is expected to last 10 years. It's salvage value is $3,000. Due to slow-down the machine was out of use for a period of one year from 1.April.2017 to 31.March 2018. Calculated depreciation charge for the year 2018-19 as per SLM." Rs. 3,000 Rs. 2,700 Rs. 3,333 NilIf one large asset has a number of individual components with different useful lives, how should this be depreciated? Treat as one asset Break down into different parts Expense it all Treat as one asset, but disclose in the notes to the financial statementsRedeemable preference shares issued with 5% fixed dividend each year subject to availability of distributable profits will be classified as? Equity Liability Asset Compound instrumentHow can a company determine if any assets are stolen? Physical Verification Assets written off in books Check with the facility team Register verificationEmployee benefits can be classified into how many types? One Two Three FourGratuity is which type of employment benefit? Short-term benefit Post-employment benefit Other long-term benefit Termination benefit"An entity operates a website that enables customers to purchase good from a range of suppliers who deliver the goods directly to the customer. When a good is purchased via the website, the entity is entitled to a commission of 10% of the sales price. In this situation, the entity is acting as an agent or principal?" Agent PrincipalA single contract with a customer could include more than one performance obligation and it is necessary to identify each performance obligation in the contract. True or False? Costs relating to satisfied performance obligations Costs related to inefficiencies Incremental costs of obtaining a contractWhich item forms part of the statement of other comprehensive income? Forex revaluation of assets and liabilities Foreign exchange gains and losses arising from translations Ineffective portion of cash flow hedge Dividend declared by the companyWhat is the step no. 3 to the 5-step revenue model? Recognition of Revenue Allocate the transaction price to each of the performance obligations Determine Transaction Price Identify the Performance Obligation(s)Which criteria needs to be evaluated to determine whether an instrument is debt or equity? Obligation to pay cash for principal Obligation for dividend / interest Settled in fixed number of shares All of aboveA gym owner enters into contract with a customer for one year of access to any of its gym facilities for an annual payment of Rs. 5,000. How should the revenue be recognised? Recognise revenue for the month the customer visit the gym Recognise revenue on straight-line basis Recognised full revenue receipt of amount Recognised full revenue at the end of the contractWhich of the following is not a component of a Statement of Financial Position? Retained Earnings Inventories Cost of goods sold Deferred taxHow should an asset be initially recognised in the financial statements? Measure at market value Measure at cost Measure at net realisable value Measure at fair valueTime is Up!