Which one of the following would not necessarily lead to a liability being classified as a current
liability?

Which one of the following would be shown in the ‘other comprehensive income’ section of the
statement of profit or loss and other comprehensive income?

Which of the following are not items required by IAS 1 Presentation of Financial Statements to be
shown on the face of the statement of financial position?

How does IAS 1 define the ‘operating cycle’ of an entity?

Where are equity dividends paid presented in the financial statements?

Inappropriate accounting policies are rectified by:

Each component of the financial statements shall be identified clearly. In addition, the following
information shall be displayed prominently:

(i) The name of the reporting undertaking
(ii) The name of chief accountant
(iii) Whether the financial statements cover the individual undertaking, or a group
(iv) The SFP date, or the period covered by the financial statements, whichever is appropriate
to that component of the financial statements
(v) the presentation currency
(vi) the level of rounding used in presenting amounts in the financial statements

Which of the following is appropriate statement regarding compliance with IFRSs?

An entity’s year end is June 30, 2019 when it has a long-term loan due on February 29, 2020. The
loan is refinanced on July 20, 2019 and now it will be repaid on April 30, 2025.

This loan shall be presented as:

An entity’s year end is June 30, 2019. It breached a condition of loan and it is now payable on
demand. However, on June 30, 2019, the lender agrees not to demand payment as a consequence
of the breach prior to June 30, 2020 giving at least 12 months grace to rectify the breach.
This loan shall be presented as:

The judgement on whether additional items are presented separately is based on an assessment
of:
(i) The nature and liquidity of assets
(ii) The function of assets
(iii) The amounts, nature and timing of liabilities
(iv) The space available in the financial statements

Which of the following statements are correct according to IAS 1?

(i) Profit or loss is the total of income less expenses, including the components of other
comprehensive income.
(ii) An entity shall present with equal prominence all of the financial statements in a complete
set of financial statements.

Which of the following statements are correct according to IAS 1?
(i) All financial statements are prepared using the accrual basis of accounting.
(ii) The entity shall reclassify comparative amounts unless reclassification is impracticable.

Which of the following statements are correct according to IAS 1?
(i) An entity need not provide a specific disclosure required by an IFRS if the information is
not material.
(ii) Measuring assets net of valuation allowance is not offsetting.

Which of the following statements are correct according to IAS 1?
(i) Statement of comprehensive income may be presented as a single statement or in two
statements, displaying profit or loss and other comprehensive income separately.
(ii) Analysis of expense in profit or loss may be presented using a classification based on their
nature or their function.

On January 1, 2015 Yasir Limited issued debenture certificates of Rs. 80 million which are repayable at premium in 2020. The coupon rate is 0% but effective interest rate is 10% per annum due to premium payable at redemption At which amount these debentures should be presented in statement of financial position as at June 30, 2015 under the heading non-current liabilities?

On January 1, 2015 Yasir Limited issued debenture certificates of Rs. 80 million which are repayable at par in 2020. The coupon rate and effective rate is 10% per annum. The interest is payable half yearly on July 1 and January 1 each year until redemption. At which amount these debentures should be presented in statement of financial position as at June 30, 2015 under the heading non-current liabilities?

On 1 January 2016, Hadi Limited (HL) started research and development work for a new product. On 1 May 2016, the recognition criteria for capitalization of internally generated asset was met. The product was launched on 1 November 2016. HL incurred Rs. 20 million from commencement of research and development work till launching of the product and charged it to cost of goods sold. It is estimated that the useful life of this new product will be 20 years. It may be assumed that all costs accrued evenly over the period. On 31 December 2016, the recoverable amount of the development expenditure was Rs. 10 million. For the year ended 31 December 2016, what amount should be transferred from cost of goods sold to administrative expenses?

Hadi Limited (HL) sells goods with a 1-year warranty and it is estimated that warranty expenses are 3% of annual sales Actual payments during the year, against warranty claims of the products sold during current and previous years were Rs. 2.5 million and Rs. 8 million respectively. These have been debited to administrative expenses. Provision for warranty balance as appearing in trial balance is Rs. 10 million. Sales for the year ended 31 December 2016 are Rs. 201,407,000. What would be the impact of above on administrative expenses for the year ended 31 December 2016 if correct adjustment is made based on above information?

Hadi Limited (HL) trial balance as at 31 December 2016 reflects the following:
Debit Rs. m Capital work-in-progress 145,000

Plant and machinery – at cost 305,000

Credit Rs. m Accumulated depreciation 53,250
No depreciation has been charged in the current year. Depreciation is provided at 10% per annum
using the straight-line method
A machine which was purchased on 1 January 2015 for Rs. 25 million was traded-in, on 1 July 2016
for a new and more sophisticated machine. The disposal was not recorded, and the new machine
was capitalized at Rs. 15 million being the net amount paid to supplier. The trade-in allowance
amounted to Rs. 20 million.
Calculate the amount of depreciation to be charged for the year ended 31 December 2016, in
respect of above?
Rs. ___________