IFRS 4

      IFRS #4 was introduced principally for what reason?

(a)     To make limited improvements to the accounting for insurance accounting

(b)    To completely overhaul insurance accounting

(c)     As a response to recent scandals within the insurance industry

(d)    Because of pressure from the financial services authorities in several countries

(a)     To make limited improvements to the accounting for insurance accounting

IFRS 4

      Which of the following types of insurance contracts would not be covered by IFRS #4?

(a)     Moto insurance

(b)    Life insurance

(c)     Medical insurance

(d)    Pension plan

(d)    Pension plan

IFRS 4

      IFRS #4 says that insurance contracts should

(a)     Generally continue to be subject to existing accounting policies during phase one

(b)    Comply with the IFRS Framework document

(c)     Comply with all existing IFRS

(d)    Be covered by IAS #32 and IAS #39 only

(a)     Generally continue to be subject to existing accounting policies during phase one

IFRS 4

      Which of the following accounting practices is prohibited by IFRS #4?

(a)     Shadow accounting

(b)    Catastrophe provisions

(c)     A test for the adequacy of recognized insurance liabilities 

(d)    An impairment test for reinsurance assets

(b)    Catastrophe provisions

IFRS 4      

Insurers can recognized an intangible asset that is the difference between the fair value and book value of insurance liabilities take on in a business combination. This asset should be accounted for using

(a)     IAS #38, Intangible Assets

(b)    IFRS #4, Insurance Contracts, only

(c)     IAS #16, Property, Plant, Equipment

(d)    Such an asset should not be accounted for until phase two of the insurance contract

(b)    IFRS #4, Insurance Contracts, only

IFRS 8

      Which one of the following disclosures is not required under IFRS #8?

(a)     The total amount of revenues from a major external customer

(b)    The identity of a major customer that accounts for 20% of the entity’s revenues

(c)     Revenue from external customers attributed to the entity’s country of domicile and attributed to all foreign countries in total from which the entity derives revenues

(d)    Revenues from external customers for each product and service, or each group of similar products and services, unless the necessary information is not available and the cost to develop it would be excessive

(b)    The identity of a major customer that accounts for 20% of the entity’s revenues

IFRS 8

      Which one of the following statements is not true in the context of IFRS #8?

(a)     The present IASB standard on segmental reporting requires entities to report segmental information using a “management approach” that allows the financial statement user to review segmental information from the “eyes of the management”

(b)    The “core principle” of IFRS #8 requires that an entity should disclose information to enable users of its financial statements to evaluate the nature and financial effects of the types of business activities in which it engages and the economic environments in which it operates

(c)     If an entity that is not required to apply IFRS #8 but still chooses to disclose information about segments in its financial statements, it shall not describe the information as segment information

(d)    The present IASB standard on segmental reporting requires entities to report segmental information using a “risks and rewards” approach

(d)    The present IASB standard on segmental reporting requires entities to report segmental information using a “risks and rewards” approach

IFRS 8

     Not all operating segments would automatically qualify as reportable segments. IFRS #8 prescribes criteria for an operating segment to qualify as a reportable segment; these are alternative quantitative thresholds. One of the quantitative thresholds listed below is not a requirement of IFRS #8. Which one is it?

(a)     Its reported revenue, from both external customers and intersegment sales or transfers, is 10% or more of the combined revenue, internal and external, of all operating segments

(b)    The absolute measure of its reported profit or loss is 10% or more of the greater, in absolute amount, of (1) the combined reported profit of all operating segments that did not report a loss and (2) the combined reported loss of all operating segments that reported a loss

(c)     Its assets are 10% or more of the combined assets of all operating segments

(d)    Its assets are 20% or more of the combined assets of all operating segments

(d)    Its assets are 20% or more of the combined assets of all operating segments

IFRS 8

      Which statement is not true with respect to a “Chief operating decision maker” as envisaged by IFRS #8?

(a)     The term “Chief operating decision maker” identifies a function and not necessarily a manager with a specific title

(b)    In some cases the “chief operating decision maker” could be its chief operating officer

(c)     The Board of directors, acting collectively, could qualify as the “chief operating decision maker”

(d)    The chief internal auditor who reports to the Board usually plays a very important role in any organization and would generally qualify as a “chief operating decision maker”

(d)    The chief internal auditor who reports to the Board usually plays a very important role in any organization and would generally qualify as a “chief operating decision maker”