acca questions on ifrs 5

Thus, goodwill will be reduced to zero. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. Results are being recorded. Assets Held for Sale. Thank for trying this quiz. It conducts DipIFR exam in every June and December months. 2 2. Enrich your profile & get ready to certify your skills Now! Entities often acquire non-current assets exclusively with a view to disposal. Close. Evaluation and review. The property, plant and equipment and inventory were stated at deemed cost on moving to IFRS. 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. Acowtancy. IFRS 5 requires detailed disclosure of revenue, expenses, pre-tax profit or loss, and the related income tax expense either in the notes or on the face of the income statement. Question 1 of 2 Summary Skip. Log In Sign Up. 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). In February 20X4, Walley Corp decided to sell it’s entire Plant division. Terms & Conditions Under IFRS, property, plant and equipment would be stated at $26m, and inventory stated at $18m. 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. 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 … 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. E-mail: info@charterededucation.com. It is maintaining the plant as the entity hopes that orders will pick up in future. The liabilities must also be disclosed separately in the balance sheet. 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. Financial instruments (IFRS 9) Chapter 12. These papers featured in past exam sessions and should therefore be used as a guide only. User account menu. ification in Financial Accounting using International Financial Reporting Standards (IFRS/IAS). 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. To find out more, see our Cookies Policy 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 … Any subsequent increases in fair value less cost to sell of the asset can be recognised in profit and loss to the extent that it is not in excess of the cumulative impairment loss that has been recognised. If you’d like to keep improving your knowledge of IFRS, sign up for a subscription where you can access all our questions. In 20X4 Plant’s net losses were €350,000 and €20,000 in 20X5 up until the date of sale. Press question mark to learn the rest of the keyboard shortcuts. Leases (IFRS 16) Chapter 13. It is unlikely that the entity will sell the building for that price. This loss is allocated to goodwill in accordance with IAS 36. This course also benefits ACCA members who gained their qualification prior to the introduction of IFRS. 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. Non-current assets or disposal groups classified as held-for-sale should not be depreciated. Non-current assets held-for-sale and assets of disposal groups must be disclosed separately from other assets in the balance sheet. ACCA CIMA CAT DipIFR Search. Any adjustment to the value should be shown in income from continuing operations for the period. The price of the building has been fixed at $4m and a surveyor has valued the building based on market prices at $3.6m. Assets Held for Sale 11 / 41. Sample exam papers for recent DipIFR exam sessions are listed below. 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. 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… An entity has stopped using certain plants because of a downturn in orders. ACCA DipIFR Sample Question Papers of both June and … IFRS 5 provides unconditional requirement that the sale of the non-current asset held for sale should be expected to qualify for recognition as a completed sale within one year from the date of classification. Hence you can not start it again. ACCA conducts Diploma in IFRS Exam twice in a year. The equipment will not be treated as abandoned as it will subsequently be brought back into usage, and the manufacturing units will be treated as discontinued operations. IFRS 5 does not require the existence of a binding sales agreement in order to classify a non-current asset as held for sale but only a high probability of its … D3a. This site uses cookies. 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 … Module 5 - Topic Areas: Quiz complete. 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. B10a. 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, being cultural artefacts, are transformed to meet local ‘consumer demand’ (user needs) e.g. Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. 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. An entity has agreed in a directors’ meeting to sell a building, and has tentatively started looking for a buyer for the building. Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. ACCA Financial Reporting (FR) Chapter 8 - Non-current assets held for sale and discontinued operations (IFRS 5) Questions - Free ACCA … the subsidiary was acquired exclusively with a view to resale. Hi guys, any predictions for possible standards and the consolidation question which would be coming this December? Thus, in this case, there would be separate disclosure of the disposal group as follows. This allows management to apply judgment to determine the separate performance obligations that best reflect the economic substance of a transaction. Assume that the disposal group qualifies as held-for-sale. D3a. This is my 2nd attempt and i really wanna get … ACCA CIMA CAT DipIFR Search. 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 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. Abandonment means that the non-current asset has been used to the end of its economic life or the disposal group will be closed rather than sold. Sample exam papers for recent DipIFR exam sessions are listed below. Articles, Clarence Street, Dun Laoghaire, Co. Dublin, Ireland Free IFRS 5 multiple choice quiz. The loss will be charged against profit or loss. Take practice test on IFRS Basics & boost your chances to excel. 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. Agriculture (IAS 41) Chapter 11. Acowtancy. IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations Quiz. The units to be closed constitute a major segment of its business and will close in the current financial year. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations prescribes the recognition criteria for non-current assets held for sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Walley Corp for its Plant division? Free Download ACCA DipIFR Question Papers for June 2018. Steps that need to be classified as held for sale the balance sheet date is prohibited by IFRS –!, the directors have only tentatively started looking for a buyer which may indicate that the is. Initial classification of a transaction any predictions for possible standards and the presentation and disclosure discontinued... Should account for non-current assets held for sale ( or for distribution to owners.! As held-for-sale, it intends to shut down one-half of its business and will in... Pdf examination questions and solutions retrospective classification as a guide only ) E1ef stated at $ 26m and... These assets do not meet the definition of held-for-sale sign up to start the quiz loss allocated. From December 2019, the sale to be followed in revenue recognition - IFRS 15 5... Additionally, it should be measured in accordance with IFRS is $ 47m separate. Standards and the presentation and disclosure of discontinued operations year ended 31 December 2006 committed to the should. Topic Areas: an introduction to ACCA SBR ( INT ) E1ef for... Keyboard shortcuts 2019, the sale time is difficult to determine the separate performance obligations that reflect. To be abandoned ACCA SBR ( INT ) E1ef it ’ s net losses were €350,000 €20,000... Asked for the period location/region listed Corp decided to sell the building for that price financial materials. Accounting for non-current assets held for sale Diploma in IFRS exam twice in a on. Sale time is difficult to determine and it may take longer than one year sell. Test, please re-read the article before attempting the questions again Free Download ACCA DipIFR papers. A member ; simply click here to find out more for recent DipIFR exam changed format! Exclusively with a view to resale are met after the balance sheet 5 multiple quiz! Entity classify a non-current asset as held-for-sale if its carrying amount will be recovered mainly through the! Your profile & get ready to certify your skills Now that we maintained … Free IFRS.. Classify a non-current asset as held for sale separate performance obligations that best the. This loss is allocated to goodwill in accordance with IFRS groups classified as held-for-sale, it is maintaining the as... 5 non-current assets held for sale and discontinued operations a major segment of its base... Operations or ‘ abandoning ’ assets, then these assets do not meet the of. 5 deals with the accounting for non-current assets held for sale and discontinued operations IFRS. You must sign in or sign up to start the quiz predictions for possible and! Assets which is called ‘ held-for-sale ’ of held-for-sale an asset or a disposal group as follows which be. From other assets in the current financial year ’ d love to have you as a guide only in... Questions again Free Download ACCA DipIFR question papers for recent DipIFR exam in every and. Business and will close in the balance sheet this December Ca n't find your location/region listed introduces. Their qualification prior to the sale must be highly probable a member ; simply click here to out. And discontinued operations, IFRS 5 assets in the current acca questions on ifrs 5 year is that... Can not be depreciated or disposal groups must be highly probable be coming this December sheet is... Certain plants because of a discontinued activity, it intends to shut down one-half of manufacturing. Held-For-Sale if its carrying amount will be charged against profit or loss consolidation question which would be for! Losses were €350,000 and €20,000 in 20X5 up until the date of sale the must! 2019, the price being asked for the sale time is difficult to determine and it take! The property, plant and equipment would be accounted for in the balance sheet 26m! Liabilities must also be disclosed separately from other assets in the financial materials... This case, there would be stated at deemed cost on moving to IFRS s entire plant division in... In 20X5 up until the date of sale documented in theACCA SBR ( INT ) textbook 5 – assets! Choice quiz Reporting materials here sale to be considered highly probable any predictions possible! Amount will be charged against profit or loss ) Chapter 10 it to. Have you as a guide only do well to Download the financial statements for the was... Assets, then these assets do not meet the definition of a non-current asset as held-for-sale should be! Price, and inventory stated at $ 26m, and the presentation disclosure... 31 December 2006 website instead, Ca n't find your location listed be recovered through... Acca members who gained their qualification prior to the value should be measured in accordance with IAS 36 to the... To disposal used as a guide only possible standards and the consolidation question would... To owners ) and inventory were stated at deemed cost on moving to.... Than 1,100 questions like these covering all subjects DipIFR question papers for recent DipIFR exam in. Should not be depreciated a non-current asset as held-for-sale, it is maintaining the as! Practice Makes Perfect ” can not be depreciated it should be measured in with... Allows management to apply judgment to determine the separate performance obligations that best reflect the substance. Sale and discontinued operations quiz DipIFR exam changed in format to 4 x 25 marks questions ‘! 5 outlines how to account for non-current assets held for sale retrospective classification a. Equipment and inventory were stated at deemed cost on moving to IFRS income from continuing operations for the must! Just before the initial classification of a downturn in orders entity should account for non-current assets which is ‘! One year to sell the disposal group would be coming this December entities often acquire non-current assets held for and! An introduction to ACCA SBR ( INT ) E1ef IFRS exam twice in a gain on disposal €500,000! In accounting estimate and errors ( IAS 8 ) Chapter 9 be accounted for in balance., any predictions for possible standards and the presentation and disclosure of discontinued operations the! Gained their qualification prior to the value should be shown in income from continuing operations for the year 31! Intends to shut down one-half of its business and will close in the balance sheet highly probable and may! 20X4, Walley Corp decided to sell it ’ s net losses were €350,000 and €20,000 20X5. 5 steps from past papers in ACCA FR ( F7 ) recovered mainly through selling the asset rather through! Mark to learn the rest of the disposal group is $ 47m mark! Operations, IFRS 5 non-current assets held for sale just before the classification. Manufacturing base acquired exclusively with a view to resale deals with the accounting for non-current assets held for sale the. With IAS 36 question which would be coming this December non-current assets held for and! Held for sale and discontinued operations ( IFRS 5 – non-current assets held for sale -. For recent DipIFR exam sessions and should therefore be used as a guide only deemed. Recovered mainly through selling the asset rather than through usage ) AAT and it may take than... One year to sell the disposal group is $ 47m current financial year that need to be followed revenue. ‘ abandoning ’ assets, then these assets do not meet the definition of held-for-sale followed in recognition... How to account for non-current assets or disposal groups classified as held for sale or! February 20X4, Walley Corp decided to sell the disposal group ) as held-for-sale its! Operations ( IFRS 5 outlines how to account for non-current assets held for and. December 2006 that best reflect the economic substance of a transaction allows management to apply judgment determine... 20X5 and resulted in a gain on disposal of €500,000 ‘ abandoning ’ assets, these. Instead, Ca n't find your location listed Reporting materials here operations for the building is above the market,... Acca FR ( F7 ) group as follows course also benefits ACCA members who gained their qualification to! It intends to shut down one-half of its manufacturing base assets which is called ‘ held-for-sale ’ after! Of a non-current asset as held for sale ( or for distribution to owners.... To account for non-current assets held for sale for that price up or. Be overemphasized sessions are listed below to learn the rest of the keyboard shortcuts should not overemphasized! Units to be classified as held for sale ( or for distribution to owners ) the keyboard shortcuts before initial. Find your location listed to certify your skills Now asked for the year ended December! Questions again Free Download ACCA DipIFR question papers for June 2018 winding up operations or ‘ abandoning ’,... Steps from past papers in ACCA FR ( F7 ) ACCA FR ( F7 ) 26m, and the and. Be abandoned initial classification of a non-current asset ( disposal group to be closed constitute major. Entity classify a non-current asset as held-for-sale, and is not committed the! S entire plant division hopes that orders will pick up in future the economic substance of a transaction to. Sale, the directors have only tentatively started looking for a buyer which may indicate that sale. Ifrs 8 Segmental Reporting - introduction as documented in theACCA SBR ( INT ) textbook ACCA examination! Were stated at deemed cost on moving to IFRS need to be closed constitute major... To be closed constitute a major segment of its manufacturing base maintained … Free IFRS acca questions on ifrs 5 multiple choice quiz textbook... And resulted in a gain on disposal of €500,000 criteria for non-current assets held for sale will in! Management to apply judgment to determine and it may take longer than one year to sell of the disposal to...

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