APPLYING IFRS STANDARDS 4TH EDITION
RUTH PICKER KERRY CLARK JOHN DUNN
DAVID KOLITZ GILAD LIVNE JANICE
LOFTUS LEO VAN DER TAS SOLUTIONS
MANUAL COMPREHENSIVE TEST PAPER
2026 COMPLETE ANSWERS ACCURATE
⫸ "IAS 37 provides guidance for reporting ______ of uncertain, timing,
amount or existence." Answer: liabilities and assets
⫸ "Contingent liabilities are defined in IAS 37 as ______ obligations
that arise from ______ events and whose existence will be confirmed by
the occurrence or nonoccurrence of a future event." Answer: possible,
past
⫸ "According to IAS 37, an onerous contract is a contract in which the
______ costs of meeting the obligation of of the contract ______ the
economic benefits expected to be received from it." Answer:
unavoidable, exceed
⫸ Examples of restructuring include: 1. The sale or termination of a line
of business. 2. The closure of business locations in a country or region.
3. A change in management structure. 4. A fundamental reorganization
that has a material effect on the nature and focus of the entity's
operations. Answer: 1,2,3,&4
,⫸ Which IAS provides guidance for the Presentation of Financial
Statements? Answer: IAS 1
⫸ "According to IAS 37, a(n) ______ is a probable asset that arises
from past events and whose existence will be confirmed only by the
occurrence of a future event." Answer: contingent asset
⫸ Which IAS provides guidance for reporting liabilities (and assets) of
uncertain timing, amount, or existence? Answer: IAS 37
⫸ What are contingent liabilities defined in IAS 37? 1. Possible
obligations that arise from past events and whose existence will be
confirmed by the occurrence or nonoccurrence of a future event. 2. A
present obligation that is not recognized because (a) it is not probable
that an outflow of resources will be required to settle the obligation or
(b) the amount of the obligation cannot be measured with sufficient
reliability. Answer: Either 1 or 2
⫸ A contract in which the unavoidable costs of meeting the obligation
of the contract exceed the economic benefits expected to be received
from it is called ______. Answer: a onerous contract
⫸ "According to IAS 37, a(n) ______ is a program that is planned and
controlled by management and that materially changes either the scope
of a business undertaken by an entity or the manner in which that
business is conducted." Answer: restructuring
, ⫸ Which IAS provides guidance of all forms of employee compensation
and benefit other than share-based compensation? Answer: IAS 19
⫸ According to IAS 37, where are contingent assets reported when the
inflow of economic benefits is probable? Answer: Disclosed in a note
⫸ When did the revised IAS 19 become effective? Answer: 2013
⫸ What are the two major issues in accounting for defined benefit
pension plans? Answer: (1) Calculation of the net defined benefit
liability (or asset) and (2) calculation of the defined benefit cost to be
recognized in either net income or other comprehensive income
⫸ Which IFRS provides guidance of employee share-based
compensation? Answer: IFRS 2
⫸ The amount recognized on the employer's balance sheet as a net
defined benefit liability (or asset) is calculated as ______. Answer:
Present value of the defined benefit obligation - Fair value of plan assets
⫸ "An employer recognizes ______ and ______ at the time that the
employee provides services.The amount recognized is undiscounted."
Answer: an expense, a liability
⫸ "IAS 19 distinguishes between defined contribution plans and defined
benefit plans. An employer ______ an expense and a liability at the time
RUTH PICKER KERRY CLARK JOHN DUNN
DAVID KOLITZ GILAD LIVNE JANICE
LOFTUS LEO VAN DER TAS SOLUTIONS
MANUAL COMPREHENSIVE TEST PAPER
2026 COMPLETE ANSWERS ACCURATE
⫸ "IAS 37 provides guidance for reporting ______ of uncertain, timing,
amount or existence." Answer: liabilities and assets
⫸ "Contingent liabilities are defined in IAS 37 as ______ obligations
that arise from ______ events and whose existence will be confirmed by
the occurrence or nonoccurrence of a future event." Answer: possible,
past
⫸ "According to IAS 37, an onerous contract is a contract in which the
______ costs of meeting the obligation of of the contract ______ the
economic benefits expected to be received from it." Answer:
unavoidable, exceed
⫸ Examples of restructuring include: 1. The sale or termination of a line
of business. 2. The closure of business locations in a country or region.
3. A change in management structure. 4. A fundamental reorganization
that has a material effect on the nature and focus of the entity's
operations. Answer: 1,2,3,&4
,⫸ Which IAS provides guidance for the Presentation of Financial
Statements? Answer: IAS 1
⫸ "According to IAS 37, a(n) ______ is a probable asset that arises
from past events and whose existence will be confirmed only by the
occurrence of a future event." Answer: contingent asset
⫸ Which IAS provides guidance for reporting liabilities (and assets) of
uncertain timing, amount, or existence? Answer: IAS 37
⫸ What are contingent liabilities defined in IAS 37? 1. Possible
obligations that arise from past events and whose existence will be
confirmed by the occurrence or nonoccurrence of a future event. 2. A
present obligation that is not recognized because (a) it is not probable
that an outflow of resources will be required to settle the obligation or
(b) the amount of the obligation cannot be measured with sufficient
reliability. Answer: Either 1 or 2
⫸ A contract in which the unavoidable costs of meeting the obligation
of the contract exceed the economic benefits expected to be received
from it is called ______. Answer: a onerous contract
⫸ "According to IAS 37, a(n) ______ is a program that is planned and
controlled by management and that materially changes either the scope
of a business undertaken by an entity or the manner in which that
business is conducted." Answer: restructuring
, ⫸ Which IAS provides guidance of all forms of employee compensation
and benefit other than share-based compensation? Answer: IAS 19
⫸ According to IAS 37, where are contingent assets reported when the
inflow of economic benefits is probable? Answer: Disclosed in a note
⫸ When did the revised IAS 19 become effective? Answer: 2013
⫸ What are the two major issues in accounting for defined benefit
pension plans? Answer: (1) Calculation of the net defined benefit
liability (or asset) and (2) calculation of the defined benefit cost to be
recognized in either net income or other comprehensive income
⫸ Which IFRS provides guidance of employee share-based
compensation? Answer: IFRS 2
⫸ The amount recognized on the employer's balance sheet as a net
defined benefit liability (or asset) is calculated as ______. Answer:
Present value of the defined benefit obligation - Fair value of plan assets
⫸ "An employer recognizes ______ and ______ at the time that the
employee provides services.The amount recognized is undiscounted."
Answer: an expense, a liability
⫸ "IAS 19 distinguishes between defined contribution plans and defined
benefit plans. An employer ______ an expense and a liability at the time
