IASB's restructured Conceptual Framework raises thorny issues

Which of the following terms is to be removed from the definition of assets and liabilities?

Expected

Obligation

Probable

Control

Which of the following is included in the definition of an economic resource?

The right to receive economic benefits

The expected future inflow of economic benefits

The access to probable economic benefits

The potential to produce economic benefits

Which of the following is included within the proposed definition of a liability?

A future obligation to transfer economic benefits

A present obligation with a reasonable expectation of transferring an economic resource

A present obligation of the entity to transfer an economic resource

A probable outflow of economic benefits

Which of the following is NOT specifically mentioned as a measurement base in the proposed Conceptual Framework?

Historical cost

Net realisable value

Value in use

Current cost

Which of the following statements below is false?

Value in use is an exit value

Current cost is an exit value

Fair value is an exit value

Historical cost is an entry value

What is suggested as the more relevant value for a derivative?

Amortised cost

Weighted average cost

Current value

Historical cost

What is suggested as the more relevant value for a group of items held to produce goods or services?

Current value

Value in use

Historical cost

Fair value

8. Which, if any, of the following statements is correct? Statement 1 – there is a rebuttable presumption that all items of income and expense should be included in the statement of profit or loss, or Statement 2 – there is a rebuttable presumption that all items in other comprehensive income can be recycled into the statement of profit or loss

Statement 1 only is correct

Both statements are correct

Neither statement is correct

Statement 2 only is correct

When does the proposed framework state that an item should be included in other comprehensive income?

If relevance and faithful representation would be enhanced

Never, unless departing from IFRS

If the amount to be recognised has an element of uncertainty

If the gain or loss relates to a future period

Which of these outlines the proposed treatment for items included within other comprehensive income?

Items should be recycled into profit or loss when doing so will enhance relevance and faithful representation

No items in other comprehensive income should recycled into profit or loss

All items in other comprehensive income should be recycled into profit or loss

Items that cannot be recycled into profit or loss show that these items should not be recognised in other comprehensive income

IASB's restructured Conceptual Framework raises thorny issues

Which of the following terms is to be removed from the definition of assets and liabilities?

Which of the following is included in the definition of an economic resource?

Which of the following is included within the proposed definition of a liability?

Which of the following is NOT specifically mentioned as a measurement base in the proposed Conceptual Framework?

Which of the following statements below is false?

What is suggested as the more relevant value for a derivative?

What is suggested as the more relevant value for a group of items held to produce goods or services?

When does the proposed framework state that an item should be included in other comprehensive income?

Which of these outlines the proposed treatment for items included within other comprehensive income?

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