Fair presentation and compliance with IFRS

Chapter 3 – Presentation of Financial Statements Page 44 7 Self Test Questions Chapter 3 1. Are the following statements in relation to materiality true or false, according to IAS1 Presentation of financial statements? 1 Materiality of items depends on their individual or collective influence on the economic decisions of users. 2 Materiality of an item depends on its absolute size and nature. Statement 1 Statement 2 A False False B False True C True False D True True 2. According to IAS1 Presentation of financial statements, the notes within the financial statements contain information in addition to that presented in which TWO of the following? A Report on sustainability B Chairmans statement C Statement of financial position D Statement of financial performance 3. Are the following statements true or false, according to IAS1 Presentation of financial statements? 1 Dividends paid should be recognised in the statement of comprehensive income. 2 A loss on disposal of assets should be recognised in the statement of changes in equity. Statement 1 Statement 2 A False False B False True C True False D True True Chapter 3 – Presentation of Financial Statements Page 45 4. Are the following statements true or false, according to IAS1 Presentation of financial statements? 1 Provisions should be recognised in the statement of financial position. 2 A revaluation surplus on non-current assets should be recognised in the statement of changes in equity. Statement 1 Statement 2 A False False B False True C True False D True True 5. According to IAS1 Presentation of financial statements, which TWO of the following must be included in an entitys statement of financial position? A Investment property B Number of shares authorised C Provisions D Shares in an entity owned by that entity 6. According to IAS1 Presentation of financial statements, which TWO of the following must be included in an entitys statement of financial position? A Cash and cash equivalents B Property, plant and equipment analysed by class C Share capital and reserves analysed by class D Deferred tax 7. Which TWO of the following are included in a complete set of financial statements, according to IAS1 Presentation of financial statements? A A statement by the board of directors of compliance with local legislation B A statement of changes in equity C Summarised statements of financial position for the last five years D A statement of cash flows