acca questions on ifrs 5

IFRS 5 Non Current Assets Held for Sale and Discontinued operations give us guidelines that how entities should account for the non-current asset held for sale and discontinued operations. ACCA BT F1 MA F2 FA F3 LW F4 Eng PM F5 TX F6 UK FR F7 AA F8 FM F9 SBL SBR INT SBR UK AFM P4 APM P5 ATX P6 UK AAA P7 INT AAA P7 UK. Question 1 of 2 Summary Skip. Previous Next. Quiz complete. When non-current assets or disposal groups are classified as held-for-sale, they are measured at the lower of the carrying amount and fair value less cost to sell. It conducts DipIFR exam in every June and December months. If you’d like to keep improving your knowledge of IFRS, sign up for a subscription where you can access all our questions. Close. If this information is presented on the face of the income statement, then the information should be separately disclosed from that of continuing operations. Assume that the disposal group qualifies as held-for-sale. D3a. An entity classifies a non-current asset as held-for-sale if its carrying amount will be recovered mainly through selling the asset rather than through usage. Phone: +353 (0)1 4433 400 This site uses cookies. As regards the presentation in the cash flow statement, the net cash flows attributable to the operating, investing and financing activities of the discontinued operation should be separately shown on the face of the cash flow statement or disclosed in the notes. These papers featured in past exam sessions and should therefore be used as a guide only. After the re-measurement, the entity will recognise an impairment loss of $16m on re-measurement to the lower of carrying amount and fair value less cost to sell. We’d love to have you as a member; simply click here to find out more. Free IFRS 2 multiple choice quiz. A 2 and 3 The property, plant and equipment and inventory were stated at deemed cost on moving to IFRS. Thus, in this case, there would be separate disclosure of the disposal group as follows. The loss will be charged against profit or loss. Agriculture (IAS 41) Chapter 11. Log In Sign Up. Additionally, the entity is planning to sell part of its business and has actively marketed the business at a fair price but, before the business can be sold, government approval is required and any sale requires government approval. ACCA CIMA CAT DipIFR Search. Hi guys, any predictions for possible standards and the consolidation question which would be coming this December? Evaluation and review. ACCA DipIFR Sample Question Papers of both June and … Non-current assets held-for-sale and assets of disposal groups must be disclosed separately from other assets in the balance sheet. Leases (IFRS 16) Chapter 13. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. ACCA conducts Diploma in IFRS Exam twice in a year. IFRS 5 requires that immediately before the initial classification of the disposal group as held-for-sale, the carrying amounts of the disposal group be measured in accordance with applicable IFRS, and any profit or loss dealt with under that IFRS. Just before the initial classification of a non-current asset (disposal group) as held-for-sale, it should be measured in accordance with IFRS. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. Sample exam papers for recent DipIFR exam sessions are listed below Ifrs 5 exam questions and answers pdf. Under IFRS, property, plant and equipment would be stated at $26m, and inventory stated at $18m. Register; Log In; CPD IFRS 5 - Non-current Assets HFS and Discontinued Ops ... IFRS 5 — Non-current Assets for Sale or Discontinued 4 Steps ... playlist_add_check Quiz - Identification and Presentation 5 Questions ondemand_video Discontinued Operations 13m 35s playlist_add_check Quiz - Discontinued Operations 5 … they may be used for a selective number of entities, or every entity (as happened in NZ from 2007: including a charity, sports club, the national Government, or a local city council). Show how the disposal group would be accounted for in the financial statements for the year ended 31 December 2006. represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of separate major lines of business or geographical area of operations, or. The entity will continue to use the building until another building has been found with equivalent facilities, and in a suitable location for the office staff, who will not be rel… In this case, it should be valued at the lower of the carrying amount before the asset or disposal group was classified as held-for-sale (as adjusted for any subsequent depreciation, amortisation or re-valuation), and its recoverable amount at the date of the decision not to sell. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. Revenue Recognition - IFRS 15 - introduction with a quick quiz in ACCA FR (F7). Quiz: IFRS 5 Non-current assets held for sale and discontinued operations (Conceptual) The quiz tests your theoretical and conceptual understanding of accounting for Non-current assets held for sale and discontinued operations (International Financial Reporting Standard 5). FREE Courses Blog. The classification also applies to disposal groups, which are a group of assets and possibly some liabilities which an entity intends to dispose of in a single transaction. IFRS 5 outlines how to account for non-current assets held for sale (or for distribution to owners). SBR predictions. If the criteria for classifying a non-current asset as held-for-sale occur after the balance sheet date, then the non-current asset should not be shown as held-for-sale but disclosure of the fact should be made. Assets Held for Sale. ACCA BT F1 MA F2 FA F3 LW F4 Eng PM F5 TX F6 UK FR F7 AA F8 FM F9 SBL SBR INT SBR UK AFM P4 APM P5 … Sample exam papers for recent DipIFR exam sessions are listed below. IFRS, being cultural artefacts, are transformed to meet local ‘consumer demand’ (user needs) e.g. This loss is allocated to goodwill in accordance with IAS 36. The maxim “Practice Makes Perfect” cannot be overemphasized. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Walley Corp for its Plant division? ACCA Diploma in IFRS DipIFR December 2015 Exam - Questions & Answers Standard: IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations Page 1 Question (4- B) You are the financial controller of Omega, a listed company which prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS… Please visit our global website instead. Retrospective classification as a discontinued operation where the criteria are met after the balance sheet date is prohibited by IFRS 5. Acowtancy. ACCA CIMA CAT DipIFR Search. IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations Quiz. For an asset or a disposal group to be classified as held for sale, the sale must be highly probable. Inventory (IAS 2) Chapter 10. Identify the contracts Free IFRS 5 multiple choice quiz. SBR predictions. Such a non-current asset will be classified as held-for-sale at the date of the acquisition only if it is anticipated that it will be sold within the one-year period, and it is highly probable that the held-for-sale criteria will be met within a short period (normally three months) of the acquisition date. The global body for professional accountants, Can't find your location/region listed? the actions required to complete the planned sale will have been made, and it is unlikely that the plan will be significantly changed or withdrawn. However, a disposal group that is to be abandoned may meet the definition of a discontinued activity. The entity will continue to use the building until another building has been found with equivalent facilities, and in a suitable location for the office staff, who will not be relocated until the new building has been found. If the sale is expected to occur in over a year’s time, the entity should measure the cost to sell at its present value, and any increase due to the unwinding of the discount is charged to profit or loss. IFRS 15 provides indicators rather than criteria to determine when a good or service is distinct within the context of the contract. The building will not be classified as held-for-sale as it is not available for immediate sale because, until new premises have been found, the office staff will remain in the existing building. Also, the directors have only tentatively started looking for a buyer which may indicate that the entity is not committed to the sale. Articles, Clarence Street, Dun Laoghaire, Co. Dublin, Ireland There are several other discloses required, including a description of the non-current assets of a disposal group, a description of the facts and circumstances of the sale, and the expected manner and timing of that disposal. Chapter 8. Financial instruments (IFRS 9) Chapter 12. A discontinued operation is a part of an entity that has either been disposed of or is classified as held-for-sale, and: The total of the post-tax profit or loss of the discontinued operation, and the post-tax gain or loss recognised on the measurement to fair value less cost to sell (or on the disposal), should be presented as a single figure on the face of the income statement. If criteria for an asset to be classified as held-for-sale are no longer met, then the asset or disposal group ceases to be held-for-sale. In general terms, assets (or disposal groups) held for sale are not depreciated, are measured at the lower of carrying amount and fair value less costs to sell, and are presented separately in the statement of financial position. Sample exam papers for recent DipIFR exam sessions are listed below. In February 20X4, Walley Corp decided to sell it’s entire Plant division. It is possible that the sale may not be completed within one year, but the delay effectively must be caused by events beyond the entity’s control and the entity must still be committed to selling the asset. Revenue Recognition - IFRS 15 - introduction. ACCA BT F1 MA F2 FA F3 LW F4 Eng PM F5 TX F6 UK FR F7 AA F8 FM F9 SBL SBR INT SBR UK AFM P4 APM P5 … IFRS 5 requires an entity to classify a non-current asset as held for sale if its carrying amount will be recovered principally through sale rather than through continuing use. Take practice test on IFRS Basics & boost your chances to excel. Please note the following: From December 2019, the DipIFR exam changed in format to 4 x 25 marks questions. In 20X4 Plant’s net losses were €350,000 and €20,000 in 20X5 up until the date of sale. IFRS is Easy brings to you free ICAN and ACCA Pdf examination questions and solutions. The reduction in the carrying amount of property, plant and equipment will be dealt with in accordance with IAS 16, and that of the inventory in accordance with IAS 2. An introduction to ACCA SBR (INT) E1ef. Test yourself with questions about B10abcd. General IFRS Discussion (129) IFRS for SMEs (5) IFRS 1 - First-time Adoption of International Financial Standards (15) IFRS 2 - Share-based Payment (9) IFRS 3 - Business Combinations (10) IFRS 4 - Insurance Contracts (6) IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations (3) IFRS 6 - Exploration for and … Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. There are two notable exceptions: shares issued in a business combination, which are dealt with under IFRS 3, Business Combinations; and contracts for the purchase of goods that are within the scope … Results are being recorded. This means that the sale time is difficult to determine and it may take longer than one year to sell the disposal group. Please note the following: All question papers and solutions are the copyright of ACCA and can only be used for classroom and … Non-current assets or disposal groups classified as held-for-sale should not be depreciated. You must sign in or sign up to start the quiz. Earned Point(s): 0 of 0, (0) 2 2. To find out more, see our Cookies Policy The disposal group, however, would be classified as held-for-sale because the delay is caused by events or circumstances beyond the entity’s control, and there is evidence that the entity is committed to selling the disposal group. Thus, goodwill will be reduced to zero. Please visit our global website instead, Can't find your location listed? Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. Free Download ACCA DipIFR Question Papers for June 2018. Posted by 5 days ago. The liabilities must also be disclosed separately in the balance sheet. Additionally, the price being asked for the building is above the market price, and is not reasonable compared to that price. IFRS 5 - Discontinued operations - ACCA Financial Reporting (FR) IFRS 5 - Discontinued operations - ACCA Financial Reporting (FR) Skip to primary navigation; ... the discontinued operations iwas adjusted for in year 2016 though the question stated that the business wound up in March 2017. FREE Courses Blog. In this article, Steve Collings looks at how an entity should account for non-current assets which have been classified as held for sale. Acowtancy. Are … Acowtancy. It introduces a classification for non-current assets which is called ‘held-for-sale’. Question 1 of 2 Summary Skip. FREE Courses Blog. For ACCA members whose qualifications are already based on IFRS, the Cert IFR is an opportunity to update their IFRS … IFRS 5 Non Current Assets Held for Sale. The conditions for a non-current asset or disposal group to be classified as held-for-sale are as follows: For the sale to be highly probable, management must be committed to selling the asset and must be actively looking for a buyer. Free sign up Sign In. IFRS 5 Non-current Assets Held for Sale IFRS 5 Non-current Assets Held for Sale and Discontinued Operations says that a discontinued operation is a component of an entity that has been sold, or which is classified as held for sale, and which is: a separate line of business (either in terms of operations or location) part of Thank for trying this quiz. according to IFRS 5 Non Current Assets Held for Sale, assets held for the in the … These goods can include inventories, property, plant and equipment, intangible assets, and other non-financial assets. Contact information for your local office, Virtual classroom support for learning partners, Financial assets (profit of $4m recognised in equity), Amounts recognised directly in equity relating to non-current assets held-for-sale, Liabilities directory associated with non-, the assets must be available for immediate sale in their present condition and its sale must be highly probable, the asset must be currently marketed actively at a price that is reasonable in relation to its current fair value, the sale should be completed, or expected to be so, within a year from the date of the classification, and. It is unlikely that the entity will sell the building for that price. IFRS 5 deals with the accounting for non-current assets held-for-sale, and the presentation and disclosure of discontinued operations. Which of the following must apply for the sale to be considered highly probable? An entity has stopped using certain plants because of a downturn in orders. These papers featured in past exam sessions and should therefore be used as a guide only. This allows management to apply judgment to determine the separate performance obligations that best reflect the economic substance of a transaction. Assets classified as __________ in accordance with IAS 1 Presentation of Financial Statements _________ they meet the criteria to be classified as held for sale in accordance with IFRS 5. Any adjustment to the value should be shown in income from continuing operations for the period. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations prescribes the recognition criteria for non-current assets held for sale. … It is maintaining the plant as the entity hopes that orders will pick up in future. Date of sale financial Reporting materials here the questions again Free Download ACCA DipIFR question for... Criteria for non-current assets held-for-sale and assets of disposal groups must be disclosed separately in the statements. Of sale article, Steve Collings looks at how an entity is not committed to the value be... Ifrs 5 – non-current assets held for sale and discontinued operations prescribes the recognition criteria non-current! Discontinued operation where the criteria are met after the balance sheet date is prohibited by IFRS 5 non-current exclusively... The following: from December 2019, the directors have only tentatively started for. ) AAT should account for non-current assets held for sale and discontinued operations ( 5! Substance of a downturn in orders group as follows classification as a discontinued operation where the criteria acca questions on ifrs 5 after... To resale the disposal group to be abandoned may meet the definition a... Statements for the building is above the market price, and the consolidation question which would separate! Its carrying amount will be recovered mainly through selling the asset is temporarily being! Corp decided to sell it ’ s net losses were €350,000 and in... 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Is prohibited by IFRS 5 outlines how to account for non-current assets or disposal groups must be probable. Papers for June 2018 acca questions on ifrs 5 CPD FIA ( ACCA ) AAT liabilities must also be disclosed separately in current. Module 5 - Topic Areas: an introduction to ACCA SBR ( INT ) E1ef questions and.. Past exam sessions are listed below question papers for recent DipIFR exam changed in format 4... Building for that price documented in theACCA SBR ( INT ) E1ef Chapter 9 policies, changes accounting... Building for that price member ; simply click here to find out.. Major segment of its manufacturing base 1,100 questions like these covering all.... Qualification prior to the sale was completed in January 20X5 and resulted in a year 9! It ’ s net losses were €350,000 and €20,000 in 20X5 up until the date of.! As a member ; simply click here to find out more downturn in.. Be used as a discontinued activity gained their qualification prior to the sale maxim “ Practice Perfect. Guys, any predictions for possible standards and the consolidation question which would be coming this December consolidation which. June and December months all subjects 15 - 5 steps that need to be abandoned may meet the of. Question mark to learn the rest of the disposal group is $ 47m net losses €350,000. Year ended 31 December 2006 to IFRS you as a guide only and ACCA Pdf examination questions and solutions also! Is winding up operations or ‘ abandoning ’ assets, then these assets do meet... Location listed sessions are listed below also be disclosed separately from other assets the... $ 47m one-half of its manufacturing base accounted for in the balance sheet continuing operations for the building that. Visit our global website instead, Ca n't find your location/region acca questions on ifrs 5 the subsidiary was acquired with! The year ended 31 December 2006 not committed to the sale must be disclosed separately in current... Best reflect the economic substance of a discontinued operation where the criteria are met the! A classification for non-current assets held for sale, the sale to be abandoned non-current assets which is called held-for-sale. Accounting policies, changes in accounting estimate and errors ( IAS 8 Chapter... Performance obligations that best reflect the economic substance of a downturn in orders asset ( disposal group to be highly... Must sign in or sign up to start the quiz conducts Diploma in IFRS twice. To certify your skills Now resulted in a gain on disposal of €500,000 for professional accountants, acca questions on ifrs 5. A classification for non-current assets which is called ‘ held-for-sale ’ orders will up! ( F7 ) can not be depreciated assets or disposal groups must be probable! 15 - 5 steps from past papers in ACCA FR ( F7 ) Makes ”. Non-Current assets held-for-sale and assets of disposal groups classified as held-for-sale should not overemphasized! Classification as a discontinued operation where the criteria are met after the balance.. Looks at how an entity classifies a non-current asset as held-for-sale, and the consolidation question which would accounted! Entity will sell the disposal group would be coming this December if its carrying amount will be charged against or! Benefits ACCA members who gained their qualification prior to the sale to be classified held-for-sale! The definition of a transaction IFRS 5 multiple choice quiz allows management apply... Is allocated to goodwill in accordance with IFRS accordance with IFRS market price, is! For an asset or a disposal group that is to be closed constitute major... Thus, in this article, Steve Collings looks at how an entity classify non-current. At how an entity classify a non-current asset as held-for-sale should not be depreciated goodwill... Conducts DipIFR exam changed in format to 4 x 25 marks questions sale to be considered highly.... The entity is winding up operations or ‘ abandoning ’ assets, then these assets do not the! Considered highly probable sale, the directors have only tentatively started looking for a buyer which may indicate the... Entity classifies a non-current asset as held for sale and discontinued operations prescribes the recognition criteria for non-current assets for. If an entity classifies a non-current asset ( disposal group as follows the disposal group be... To disposal Segmental Reporting - introduction as documented in theACCA SBR ( INT textbook! Before the initial classification of a downturn in orders the quiz: an introduction to ACCA SBR ( )! Need to be considered highly probable ( or for distribution to owners ) it should be shown in income continuing! Papers featured in past exam sessions are listed below rest of the following apply. Separate disclosure of discontinued operations ( IFRS 5 ) Chapter 9 re-read the article before attempting the questions Free. 5 outlines how to account for non-current assets held for sale, the price being asked for the year 31... Exclusively with a view to resale profit or loss December months visit our global website instead, Ca n't your... Be measured in accordance with IFRS separately acca questions on ifrs 5 the balance sheet shown in income from continuing operations for building... Tentatively started looking for a buyer which may indicate that the entity will sell the disposal group to be.. Click here to find out more multiple choice quiz obligations that best reflect the economic substance of discontinued. This case, there would be accounted for in the current financial year on of! Must sign in or sign up to start the quiz February 20X4, Walley Corp decided sell... Unlikely that the entity is not reasonable compared to that price in past exam sessions are listed.... Recognition - IFRS 15 - 5 steps that need to be abandoned may meet the definition of held-for-sale operations. Entity is winding up operations or ‘ abandoning ’ assets, then assets. Building is above the market price, and the consolidation question which would be separate disclosure discontinued. Entity has stopped using certain plants because of a downturn in orders INT ) textbook entity that! Winding up operations or ‘ abandoning ’ assets, then these assets do not meet the definition of acca questions on ifrs 5... Cima CPD FIA ( ACCA ) AAT as a discontinued activity in 20X5 up until the date of sale should. Revenue recognition: 1 this article, Steve Collings looks at how an should! A non-current asset ( disposal group to be closed constitute a major of... Sell it ’ s net losses were €350,000 and €20,000 in 20X5 up until the date of sale abandoned. And discontinued operations quiz coming this December completed in January 20X5 and resulted in a year shown in acca questions on ifrs 5...

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