Deck 16: Presentation of Financial Statements

Question 1

Under AASB 101, profit or loss attributable to non-controlling interests is required to be presented in the:

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

Answer 1

D

Question 2

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

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

Answer 2

B

Question 3

At reporting date for Year 1, Delta Limited had a loan from its financial institution that is expected to settle within six 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 the purposes of financial statement presentation for Year 1, this loan is classified by Delta Limited as a/an:

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

Answer 3

A

Question 4

AASB 101 Presentation of Financial Statements applies to the following sets of financial statements:

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

Question 5

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

A) they are financial items and can be off-set.
B) the directors approve aggregation of the items.
C) the auditors approval aggregation of the items.
D) they are immaterial.

Question 6

A liability will be classified as 'non-current' if it satisfies which of the following criterion?

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

Question 7

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

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

Question 8

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

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

Question 9

A set of financial statements prepared in accordance with AASB 101 comprises:
I. A statement of cash flows.
II. A statement of financial position.
III. A statement of changes in equity.
IV. A statement of profit or loss and other comprehensive income.
V. Notes.

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

Question 10

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

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

Question 11

Which of the following note disclosures are not required by AASB 101?

A) Significant accounting policies used.
B) Sources of estimation uncertainty in relation to impairment of assets.
C) Names and qualifications of all directors of the entity.
D) Dividends declared after end of reporting period but before the financial statements are authorised for issue.

Question 12

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

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

Question 13

Industries where operating cycles may exceed twelve months typically include:

A) retail.
B) manufacturing.
C) food preparation.
D) property development.

Question 14

Which of the following items are normally classified as 'current' in a statement of financial position?
I. deferred tax liabilities.
II. accounts payable.
III. inventories.
IV. goodwill.

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

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?

A) Investment property.
B) Cash and cash equivalents.
C) Current tax liability.
D) All of these items.

Question 16

An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant and more reliable for decision-making purposes to present them according to their:

A) age.
B) value.
C) liquidity.
D) physical nature.

Question 17

Which of the following items must be presented as a separate line item in the statement of financial position?

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

Question 18

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

A) prescribed by the standard.
B) not prescribed but guidance is provided in the standard for a suitable format.
C) not prescribed and no 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 19

AASB 101 requires which of 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.

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

Question 20

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

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

Question 21

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

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

Question 22

The issuing of bonus shares in lieu of a cash dividend would be separately disclosed in an entity's:

A) statement of cash flows.
B) statement of changes in equity.
C) statement of financial position.
D) statement of comprehensive income.

Question 23

The application of International Financial Reporting Standards, with additional disclosure where necessary, is presumed to result in financial statements that:

A) are unbiased.
B) contain only material items.
C) will result in a fair presentation.
D) are free from error and misstatement.

Question 24

Which of the following items are included in a statement of changes in equity?
I. Dividends paid.
II. New share issues.
III. Opening and closing balances.
IV. Profit or loss for the period.

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

Question 25

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

A) monthly.
B) annually.
C) half-yearly.
D) every four months.