With regard to the definition of revenue given by IFRS 15, which of the following statements is true?
Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…
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Q: Which of the following is not one of the general features of financial statements under PAS 1? *…
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Q: Unconditional transfers of cash or other resources to an entity in a voluntary, nonreciprocal…
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Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the statement of cash…
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Q: True or False questions I. Under the accrual basis of accounting, revenues are recognized when they…
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A: THE OBJECTIVE OF FINANCIAL REPORTING IS TO TRACK ANALYSE AND REPORT YOUR BUSINESS INCOME . THE…
Q: PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?
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A: Option C - Cash Payment is not a pervasive expense recognition principle.
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Q: Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when: I. The…
A: Financial Assets shall be subsequently measured at amortized cost, when The Business Model is to…
Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…
A: IFRS 9 talks about solely payments of principal and interest (SPPI).
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A: The accumulated portion of the fixed asset that has been charged to expenditure through either…
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A: Fair value through other comprehensive income-financial assets are classified and measured at fair…
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A: Realization Concept Realization concept in accounting, also known as revenue recognition principle,…
Q: Question 14 Which statement is incorrect regarding contractual cash flows that are solely payments…
A: Question 14 Which statement is incorrect regarding contractual cash flows that are solely payments…
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A: A cash flow statement is a part of financial statement which shows how cash has been generated by a…
Q: Which of the following cannot be treated as revenues for an entity? Cash sales OCredit sales…
A: Cash Sales - These are sales made against cash. Credit Sales - It refers to a sale in which the…
Q: allocated to the award credits when it fulfils its obligations in respect of the awards. a. All…
A: Correct option is c i.e 2nd statement is incorrect while the 1st statement is correct Explanation:
Q: Under PFRS 15, what is the measurement of consignment sales revenue? a. realizable value of…
A: Consignment revenue: Consignment is a trade contract where goods are left in the custody of…
Q: There are more similarities than differences between income statements and statements of cash…
A: US GAAP and IFRS (International standards) have difference in cashflow statements pertaining to…
Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…
A: Contractual cash flows are cash flows either cash inflows or cash outflows between two contracting…
Q: Which statement is incorrect regarding contractual cash flows that are solely payments of principal…
A: Contractual cash flows are the exchanges of cash either cash inflows or cash outflows between two…
Q: Under PFRS 15, what is the measurement of consignment sales revenue? A. Realizable value of…
A: The PFRS 15 states the revenue measured at Fair value consideration received or receivable.
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A: Note: Hey, since there are multiple questions posted, we will answer first question. If you want any…
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A: Cash basis of accounting refers to the refers to a method of accounting which is majorly used in…
Q: The cash basis and accrual basis of accounting in the public sector in terms of A. Recognition of…
A: SOLUTION- CASH BASIS OF ACCOUNTING REFERRED TO THAT METHOD OF ACCOUNTING WHERE THE ACCOUNTING SYSTEM…
Q: PFRS 9 requires entities to measure their financial assets
A: PFRS 9 requires entities to measure their financial assets based on The contractual cash flow…
Q: Under what circumstances under PFRS 9 can an entity classify financial assets that meet the…
A: PFRS 9 includes 3 main components. (1) Requirements for recognition, Classification of Financial…
With regard to the definition of revenue given by IFRS 15, which of the following statements is true?
a. Revenue includes cash received from borrowings
b. Revenue may arise from either ordinary activities or extraordinary activities
c. Revenue includes cash received from share issues
d. Revenue arises from ordinary activities only
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- Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as an operating activity but classifies cash expenditures to redeem debt as a financing activity. Explain this apparent paradox.Which statement is incorrect? A. An entity shall report cash flows from operating activities either using direct or indirect method. B. Interest payments to lenders should be classified as cash outflows for financing activities. C. Cash receipts from commissions and other revenues are cash flows from operating activities. D. The aggregate cash flows arising from acquisition of subsidiary should be classified as investing activities.5.According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity purchases investments in equity securities when the entity becomes a party to the contractual provisions of the instrument when the entity has a codified business model with an objective of holding assets in order to collect contractual cash flows all of these
- Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expenseon debt as an operating activity but classifies cash expenditures for dividends to shareholdersas a financing activity. Justify this apparent paradox.Unconditional transfers of cash or other resources to an entity in a voluntary, nonreciprocal transaction should be recognized as Select one: a.non-operating gains. b. revenue. c.other comprehensive income. d. liabilities.Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a. principal is the fair value of the financial asset at initial recognition b. contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending engagement c. an originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form d. an entity shall assess whether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated
- Which of the following statements about cash received prior to the recognition of revenue in the fi nancial statements is most accurate? Th e cash is recorded as: A . deferred revenue, an assetWhich statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a.Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. b.Principal is the fair value of the financial asset at initial recognition. c.An entity shall assesswhether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated. d.An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form.Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? Group of answer choices Contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending arrangement. An originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form. Principal is the fair value of the financial asset at initial recognition. An entity shall assess whether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated.
- When a contingency allows for the recognition of a provision, which of the following would be least likely affected by the recognition? a. Statement of Cash Flows b. Statement of Financial Position c. Statement of Changes in Equity d. Statement of Comprehensive Income17.These are conditions required by IFRS 9 for notes and accounts receivable to be measured at amortized cost.I. The financial asset is held within the enterprise's business model whose objective is for trading purposes.II. The financial asset is held within the enterprise's business model whose objective is to hold assets in order to collect contractual cash flows.III. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest. a. I and II only b. II and III only c. I and III only d. I, II and IIIStatement I: Under accrual accounting the computation of the entity’s net income is by deducting the cash disbursement into the cash receipts.Statement II: Under the accrual accounting the enterprise income will include income earned from uncollectible sales. Only statement II is correct Both statements are incorrect Only statement I is correct Both statements are correct