Month End Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

Note! Following FR Exam is Retired now. Please select the alternative replacement for your Exam Certification.

Verified By IT Certified Experts

CertsTopics.com Certified Safe Files

Up-To-Date Exam Study Material

99.5% High Success Pass Rate

100% Accurate Answers

Instant Downloads

Exam Questions And Answers PDF

Try Demo Before You Buy

Certification Exams with Helpful Questions And Answers

Financial Reporting Questions and Answers

Question 1

Rochester pIc has entered into a fixed price contract for the provision of services to Adele Ltd. The contract commenced in September 2012 and will be completed in 2013. The contract price is $2 million and costs are recoverable as incurred. At 31 December 2012, Rochester plc's year ends, costs of $500,000 have been incurred.

The contract has been assessed as 30% complete; however, costs to complete cannot be estimated reliably.

In accordance with IAS 18 Revenue, how much revenue should be included in Rochester plc's statement of comprehensive income for the year ended 31 December 2012 in respect of this contract?

Options:

A.

Nil

B.

$500,000

C.

$600,000

D.

$2 million

Buy Now
Question 2

Which of the following are roles of the IFRS Foundation?

(1)To issue IFRS

(2)To examine any identified or alleged departures from IFRS

(3)To guide the International Accounting Standards Board (IASB)

(4)To secure finance

Options:

A.

(1) and (2)

B.

(1) and (3)

C.

(2) and (4)

D.

(3) and (4)

Question 3

A company is developing a new production process. During 2012, expenditure incurred was $100,000, of which $90,000 was incurred before 1 December 2012 and $10,000 between 1 December 2012 and 31 December 2012. The company can demonstrate that, at 1 December 2012, the production process met the criteria for recognition as an intangible asset. The recoverable amount of the know-how embodied in the process is estimated to be $50,000.

How should the expenditure be treated?

Options:

A.

$100,000 isrecognizedas an intangible asset.

B.

$90,000 isrecognizedas an intangible asset and $10,000 is expensed.

C.

$90,000 is expensed and $10,000 isrecognizedas an intangible asset.

D.

$100,000 is expensed.