.png){kind=logo}
Question:-How are Accounting Changes Handles {{Ans- Change in Estimate > prospectively Change in Accounting Policy > retrospectively or follow transition guidance if new standard Correction of Error > Retrospectively IFRS - IAS 8 ASPE 1506 Question:-To be considered as "Held for sale" a non-current asset must meet this criteria {{Ans- · Must be available for immediate sale in present condition · Terms of sale must be usual and customary · Sale must be highly probable o Mgmt. committed to sell o Actively looking for buyer o Asset must be marketed at reasonable price o Sale should be expected to be completed within 1yr (can be waived for delays outside entity's control) o Actions required to complete should indicate no significant changes/withdrawals planned. *Measurement is at lower of carry value or FV less selling costs IFRS 5 ASPE 3475 Question:-To be considered a discontinued operation, a component must meet what criteria {{Ans- · Must meet "held for sale" criteria Plus ONE of the following · It represents a separate major line of business or geographical area of operations. · It is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations. · It is a subsidiary acquired exclusively with a view to resale. IFRS 5 ASPE 3475 Question:-IAS 36 - What are the 4 steps to determine impairment {{Ans- 1.) Identify CGU 2.) Determine if item must be tested for impairment Must test annually for > goodwill/intangibles not being amortized 3.) Determine Recoverable amount Higher of > FV less cost of disposal Value in use (PV of future cash flows) 4.) Complete impairment test and write down item (recoverable amt - Carry value) Question:-Balance Sheet Audit Assertions {{Ans- · Existence · Rights/Obligations · Completeness · Accuracy/Valuation/Allocation · Classification · Presentation Question:-Transaction Level Audit Assertions {{Ans- · Occurrence · Completeness · Accuracy · Cut-off · Classification · Presentation Question:-Criteria for Capitalizing Development Costs {{Ans- · It is technically feasible to complete so that it will be available for sale or use · There is intention to use or sell the intangible asset · The technical, financial and other resources to complete development are available
.png)