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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Income Taxes | 18% | - Current and deferred tax calculation - Tax effects in financial statements |
| Topic 2: Impairment of Assets | 6% | - Impairment testing and recognition - Impairment indicators and recoverable amount |
| Topic 3: Revenue, Provisions and Liabilities | 14% | - Revenue from contracts with customers - Provisions, contingent liabilities and assets |
| Topic 4: Financial Instruments | 12% | - Classification and measurement - Recognition, derecognition and disclosure |
| Topic 5: Business Combinations and Group Accounting | 20% | - Business combinations and goodwill - Consolidation principles and procedures - Non-controlling interests |
| Topic 6: Role and Regulatory Framework of Financial Reporting | 15% | - Business entities and reporting obligations - Conceptual framework and qualitative characteristics - Regulatory environment and standards setting |
| Topic 7: Presentation of Financial Statements | 15% | - Statement of profit or loss and OCI - Statement of cash flows and notes - Statement of financial position |
Question 1
A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in
A. measurement basis and must be disclosed.
B. accounting estimate and does not need to be disclosed.
C. measurement basis and does not need to be disclosed.
D. accounting estimate and must be disclosed.
Question 2
In an efficient market, normally if interest rates rise, share prices will
A. rise due to the overall positive sentiment.
B. rise since banks invest their increased profits.
C. fall since investors expect a higher return.
D. fall in anticipation of a reversal in the interest rate cycle.
Question 3
Which one of the following contributes to an efficient capital market?
A. stock markets ensuring that companies do not overcharge for their products
B. information about the stock market can be obtained cheaply
C. stock markets being managed by directors of companies that are listed on the stock market
D. having stock markets in every country
Question 4
The two fundamental qualitative characteristics of the financial information are
A. verifiability and relevance.
B. relevance and faithful representation.
C. relevance and comparability.
D. faithful representation and comparability.
Question 5
X was influenced by G Co's audit report and dividend declaration, and decided to invest in the securities of the company. What should X be cautious about before investing in the shares of the company?
X should be aware that
A. the auditor's report is influenced by the directors.
B. the declaration of dividends assures high earnings per share.
C. the auditor's report refers to the company's prior year financials.
D. a declaration of dividend is the ultimate measure of a company's profitability.
Solutions:
| Question 1 Answer: A | Question 2 Answer: C | Question 3 Answer: B | Question 4 Answer: B | Question 5 Answer: C |
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