Preparing for change

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. New and revised standards on group accounting were published in 2011. For example IFRS 10, Consolidated financial statements replaces IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities and sets out a single consolidation model that identifies control as the basis for consolidation for all types of entities. Which of the following implementation principles relates to these new standards?

  2. IFRS 13, Fair value measurement, published in May 2011, deals with fair valuing in entities financial statements. A number of current IFRSs require entities to measure or disclose the fair value of assets, liabilities or equity instruments. Why was there a need for a standard on fair value measurement?

  3. The revisions made to IAS 19, Employee benefits, are significant, and will impact most entities. They come into effect from 1 January 2013. The revisions change the recognition and measurement of defined benefit pensions expense and termination benefits and the disclosures required. Which of the following accounting practices has occurred as a result of the revisions to IAS 19?

  4. IFRS 9 Financial Instruments is being developed in three phases - classification and measurement, impairment and hedging. The IASB agreed in late 2011 to look at limited modifications to IFRS 9 for classification and measurement. Which of the following was a key amendment to IFRS 9?

  5. Which of the following amendments will not relate to a set of financial statements ending in 2012?