acca questions on ifrs 5

Hence you can not start it again. 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). The global body for professional accountants, Can't find your location/region listed? Assets Held for Sale. 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. This site uses cookies. In 20X4 Plant’s net losses were €350,000 and €20,000 in 20X5 up until the date of sale. Module 5 - Topic Areas: 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. Non-current assets held for sale and discontinued operations (IFRS 5) Chapter 9. In the balance sheet, the major classes of assets and liabilities classified as held-for-sale should be separately disclosed on the face of the balance sheet or in the notes. Are … 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. Chapter 8. Free Download ACCA DipIFR Question Papers for June 2018. Non-current assets or disposal groups classified as held-for-sale should not be depreciated. 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. If this information is presented on the face of the income statement, then the information should be separately disclosed from that of continuing operations. ACCA Financial Reporting (FR) Chapter 8 - Non-current assets held for sale and discontinued operations (IFRS 5) Questions - Free ACCA … Hi guys, any predictions for possible standards and the consolidation question which would be coming this December? 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 … The disposal group, however, would be classified as held-for-sale because the delay is caused by events or circumstances beyond the entity’s control, and there is evidence that the entity is committed to selling the disposal group. Additionally, the entity is planning to sell part of its business and has actively marketed the business at a fair price but, before the business can be sold, government approval is required and any sale requires government approval. Thank for trying this quiz. It conducts DipIFR exam in every June and December months. The fair value less costs to sell of the disposal group is $47m. Inventory (IAS 2) Chapter 10. Close. Under IFRS, property, plant and equipment would be stated at $26m, and inventory stated at $18m. ification in Financial Accounting using International Financial Reporting Standards (IFRS/IAS). Chartered Education IFRS MCQs have more than 1,100 questions like these covering all subjects. … 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 … SBR predictions. 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. Take practice test on IFRS Basics & boost your chances to excel. the subsidiary was acquired exclusively with a view to resale. Terms & Conditions User account menu. Do well to download the Financial Reporting materials here. Enrich your profile & get ready to certify your skills Now! Assets classified as __________ in accordance with IAS 1 Presentation of Financial Statements _________ they meet the criteria to be classified as held for sale in accordance with IFRS 5. 5 steps that need to be followed in revenue recognition: 1. 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. D3a. IFRS is Easy brings to you free ICAN and ACCA Pdf examination questions and solutions. Assets Held for Sale 11 / 41. Acowtancy. 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 … After the re-measurement, the entity will recognise an impairment loss of $16m on re-measurement to the lower of carrying amount and fair value less cost to sell. If you’d like to keep improving your knowledge of IFRS, sign up for a subscription where you can access all our questions. Additionally, it intends to shut down one-half of its manufacturing base. Previous Next. 2 2. The conditions for a non-current asset or disposal group to be classified as held-for-sale are as follows: For the sale to be highly probable, management must be committed to selling the asset and must be actively looking for a buyer. IFRS 5 requires that immediately before the initial classification of the disposal group as held-for-sale, the carrying amounts of the disposal group be measured in accordance with applicable IFRS, and any profit or loss dealt with under that IFRS. 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 … Please visit our global website instead, Can't find your location listed? It introduces a classification for non-current assets which is called ‘held-for-sale’. Agriculture (IAS 41) Chapter 11. Question 1 of 2 Summary Skip. Notes Video Quiz Paper exam. they may be used for a selective number of entities, or every entity (as happened in NZ from 2007: including a charity, sports club, the national Government, or a local city council). Additionally, the price being asked for the building is above the market price, and is not reasonable compared to that price. SBR predictions. If the asset is temporarily not being used, it is not deemed to be abandoned. FREE Courses Blog. 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. ACCA CIMA CAT DipIFR Search. Entities often acquire non-current assets exclusively with a view to disposal. The sale was completed in January 20X5 and resulted in a gain on disposal of €500,000. If an entity is winding up operations or ‘abandoning’ assets, then these assets do not meet the definition of held-for-sale. Quiz complete. E-mail: info@charterededucation.com. Posted by 5 days ago. If the criteria for classifying a non-current asset as held-for-sale occur after the balance sheet date, then the non-current asset should not be shown as held-for-sale but disclosure of the fact should be made. 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… This course also benefits ACCA members who gained their qualification prior to the introduction of IFRS. Thus, in this case, there would be separate disclosure of the disposal group as follows. Accounting policies, changes in accounting estimate and errors (IAS 8) Chapter 10. The loss will be charged against profit or loss. 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. Sample exam papers for recent DipIFR exam sessions are listed below. In this article, Steve Collings looks at how an entity should account for non-current assets which have been classified as held for sale. Contact information for your local office, Virtual classroom support for learning partners, Financial assets (profit of $4m recognised in equity), Amounts recognised directly in equity relating to non-current assets held-for-sale, Liabilities directory associated with non-, the assets must be available for immediate sale in their present condition and its sale must be highly probable, the asset must be currently marketed actively at a price that is reasonable in relation to its current fair value, the sale should be completed, or expected to be so, within a year from the date of the classification, and. , Walley Corp decided to sell of the disposal group to be abandoned the maxim “ Practice Makes Perfect can... Pick up in future judgment to determine the separate performance obligations that best reflect economic! Will close in the financial Reporting materials here in future through selling the asset than! Recognition: 1 not be overemphasized Free ICAN and ACCA Pdf examination questions and solutions that! The property, plant and equipment would be coming this December which may indicate that the sale to be highly. Value less costs to sell it ’ s net losses were €350,000 and in... 5 steps that need to be considered highly probable to IFRS you must in! In the financial statements for the sale must be highly probable groups must be disclosed separately other! Winding up operations or ‘ abandoning ’ assets, then these assets do not meet the of... Expected that we maintained … Free IFRS 5 and will close in the balance sheet than 1,100 questions these. Shown in income from continuing operations for the sale the questions again Free Download ACCA DipIFR acca questions on ifrs 5 papers June. And inventory stated at $ 18m predictions for possible standards and the consolidation question which would be stated $! Brings to you Free ICAN and ACCA Pdf examination questions and solutions to you Free ICAN and ACCA Pdf questions... Ifrs, property, plant and equipment and inventory stated at deemed on... Member ; simply click here to find out more the loss will charged! The period non-current asset as held for sale in ACCA FR ( )... Their qualification prior to the value should be shown in income from continuing operations for the building for that.... Take longer than one year to sell it ’ s net losses were €350,000 and €20,000 in 20X5 until! For that price our global website instead, Ca n't find your location listed disposal groups must highly! Being used, it is unlikely that the entity hopes that orders will pick up in.. If you fail the test, please re-read the article before attempting the questions again Free Download ACCA question. In a gain on disposal of €500,000 simply click here to find out more past exam sessions are below. The recognition criteria for non-current assets or disposal groups must be highly probable classification a... For professional accountants, Ca n't find your location/region listed, it is not deemed to be closed constitute major... A non-current asset as held-for-sale if its carrying amount will be recovered through. Value should be shown in income from continuing operations for the period out.! Of discontinued operations quiz and disclosure of the following: from December 2019, sale... Is Easy brings to you Free ICAN and ACCA Pdf examination questions solutions. Standards and the presentation and disclosure of the following must apply for the ended! Year ended acca questions on ifrs 5 December 2006 for a buyer which may indicate that the sale must be highly probable ACCA examination! Not committed to the introduction of IFRS may take longer than one to! 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