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1. Under IAS 34, interim financial reports should be published
a. Once a year at any time in that year.
b. Within a month of the half-year-end.
c. On a quarterly basis.
d. Whenever the entity wishes.
MULTIPLE-CHOICE QUESTIONS
2. The IASB encourages publicly traded entities to provide interim financial reports
a. At least at the end of the half-year and within 60 days of the end of the interim period.
b. Within a month of the half-year-end.
c. On a quarterly basis.
d. Whenever the entity wishes.
3. If an entity does not prepare interim financial reports, then
a. The year-end financial statements are deemed not to comply with IFRS.
b. The year-end financial statements’ compliance with IFRS is not affected.
c. The year-end financial statements will not be acceptable under local legislation.
d. Interim financial reports should be included in the year-end financial statements.
4. Interim financial reports should include as a minimum
a. A complete set of financial statements complying with IAS 1.
b. A condensed set of financial statements and selected notes.
c. A balance sheet and income statement only.
d. A condensed balance sheet, income statement, and cash flow statement only.
5. IAS 34 states a presumption that anyone reading interim financial reports will
a. Understand all International Financial Reporting Standards.
b. Have access to the records of the entity.
c. Have access to the most recent annual report.
d. Not make decisions based on the report.
6. An entity owns a number of farms that harvest produce seasonally. Approximately 80% of the entity’s sales are in the period August to October. Because the
entity’s business is seasonal, IAS 34 suggests
a. Additional notes be written in the interim reports about the seasonal nature of the business.
b. Disclosure of financial information for the latest and comparative 12-month period in addition to the interim report.
c. Additional disclosure in the accounting policy note.
d. No additional disclosure.
7. An entity is preparing half-yearly financial information in line with IAS 34. The period to be covered by the financial statements is the six months to June 30,20X9.
A new IFRS has been published that is effective for periods beginning on or after January 1, 20X9. The entity must adopt the IFRS
a. In the financial statements for the year to December 31, 20X9, only.
b. In its interim financial statements to June 30, 20X9, only.
c. In its interim financial statements to June 30, 20X9, and its annual financial statements to December 31,20X9.
d. At its own discretion.
8. An entity operates in the travel industry and incurs costs unevenly through the financial year. Advertising costs of $2 million were incurred on March 1, 20X9, and
staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around $20 million for the year; of that sum, $3 million would relate to the period
ending March 31, 20X9. What costs should be included in the entity’s quarterly financial report to March 31, 20X9?
a. Advertising costs $2 million; staff bonuses $5 million.
b. Advertising costs $0.5 million; staff bonuses $5 million.
c. Advertising costs $2 million; staff bonuses $3 million.
d. Advertising costs $0.5 million; staff bonuses $3 million.
9. An entity prepares quarterly interim financial reports in accordance with IAS 34. The entity sells electrical goods, and normally 5% of customers claim on their
warranty. The provision in the first quarter was calculated as 5% of sales to date, which was $10 million. However, in the second quarter, a design fault was found and
warranty claims were expected to be 10% for the whole of the year. Sales in the second quarter were $15 million. What would be the provision charged in the second
quarter’s interim financial statements?
a. $750,000.
b. $1.25 million.
c. $1.5 million.
d. $2 million.