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Questions and Answers
Investments in associates must be tested for impairment if the entity uses?
Investments in associates must be tested for impairment if the entity uses?
Which of the following is specifically required to be reported as a line item for an SME but not under full PFRS?
Which of the following is specifically required to be reported as a line item for an SME but not under full PFRS?
All of the following are considered line items in the statement of financial position of an SME except?
All of the following are considered line items in the statement of financial position of an SME except?
Which is not considered as Other Comprehensive Income (OCI) for SMEs?
Which is not considered as Other Comprehensive Income (OCI) for SMEs?
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Which method is used by SMEs in recognizing revenue from rendering services?
Which method is used by SMEs in recognizing revenue from rendering services?
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Which of the following cannot be accounted for by SMEs under the cost model?
Which of the following cannot be accounted for by SMEs under the cost model?
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Which of the following is not considered a 'basic' financial instrument for SMEs?
Which of the following is not considered a 'basic' financial instrument for SMEs?
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Which of the following is not considered as 'other' financial instrument for SMEs?
Which of the following is not considered as 'other' financial instrument for SMEs?
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Compute the current assets based on the given data.
Compute the current assets based on the given data.
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Compute the noncurrent liabilities based on the provided data.
Compute the noncurrent liabilities based on the provided data.
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Compute the shareholders' equity based on the provided data.
Compute the shareholders' equity based on the provided data.
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Study Notes
Impairment Testing for Investments in Associates
- Under IFRS for SMEs, investments in associates are tested for impairment if the entity uses either the cost model or the equity method.
Financial Instruments Reporting for SMEs
- Financial assets, non-current assets held for sale, and investment in joint ventures are specifically required to be reported as line items in the financial statements of an SME.
- Property, plant and equipment is not specifically required as a line item for SMEs.
SME Statement of Financial Position Line Items
- Provisions, non-controlling interest, and equity attributable to the owners of the parent are all considered line items in the statement of financial position of an SME.
- Revaluation surplus is not considered a line item in the statement of financial position of an SME.
Other Comprehensive Income (OCI) for SMEs
- Actuarial gains and losses, foreign exchange translation gains and losses, and changes in fair values of hedging instruments are considered OCI for SMEs.
- Gains and losses on FVOCI securities are not considered OCI for SMEs.
Revenue Recognition for SMEs
- SMEs use the accrual method for recognizing revenue from rendering services.
Accounting for Assets Under the Cost Model for SMEs
- Intangible assets, investment property, and property, plant and equipment can be accounted for under the cost model.
- Investments in associates cannot be accounted for under the cost model for SMEs.
Financial Instruments for SMEs
- Bonds and loans payable, commercial paper and bills, and cash and bank accounts are considered basic financial instruments for SMEs.
- Options and warrants are not considered basic financial instruments for SMEs.
Other Financial Instruments for SMEs
- Derivatives, hedging instruments, and investments in convertible and puttable shares are considered other financial instruments for SMEs.
- Investments in non-convertible and non-puttable shares are not considered other financial instruments for SMEs.
Current Assets Calculation
- To calculate current assets, add together: cash, accounts receivable, prepayments, inventories, and investments in associates.
Noncurrent Assets Calculation
- To calculate noncurrent assets, add together: *property, plant and equipment, *software, and other noncurrent assets.
Current Liabilities Calculation
- To calculate current liabilities, add together: trade payables, interest payable, current tax liability, provision for warranty, employee benefit obligation current portion, finance lease liability current portion, and bank overdraft.
Noncurrent Liabilities Calculation
- To calculate noncurrent liabilities, add together: bank loan payable in 2024, and finance lease liability less current portion.
Shareholder Equity Calculation
- To calculate shareholder equity, add together: share capital and retained earnings.
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Description
This quiz covers key concepts in financial reporting for Small and Medium-sized Enterprises (SMEs) under IFRS. Topics include impairment testing for investments, the reporting requirements for financial instruments, and the line items in the statement of financial position. Test your knowledge on how SMEs should approach these critical financial disclosures.
