Question

1.      All the following are general principles prescribed by AASB 101 to be applied in the presentation of financial statements, except for:

1. Historical cost measurement
2. Offsetting
3. Going concern
4. Materiality aggregation

2.      During 2019, vinnie ltd estimated that the carrying amount of its goodwill was impaired and wrote down by $28,000, In 2020, the company’ goodwill was reassessed and it was decided that the goodwill of $28,000 still existed. The appropriate accounting treatment in 2020 is:

1. Ignore the reversal as it is prohibited by AASB 136 impairment of assets
2. Recognize the revalued amount of goodwill by an adjustment the asset revaluation surplus account
3. Increase goodwill by an adjustment to retained earnings
4. Reverse the previous goodwill impairment loss

3.      A statement of cash flow provides information about

i. net cash flows arising from financial activities

ii.   Movements in retained earnings

iii. movements in cash and cash equivalents

4. movements in revaluation reserves

4.      In business combination, an acquirer might obtain control of an acquiree in a variety of ways except

i.        issue share capital

ii.       incure liabilities

iii.      resuming sears in board of directors

4. by cash payment

5.      when accounting for equity the amount recognized in share capital:

i.        indicates the market value of shares at the reporting date

ii.       as the difference between assets and liabilities

iii.      shows the amount receivable from shareholders

4. may comprise of one or several classes or shares

Answer 1

All the following are general principles prescribed by AASB 101 to be applied in the presentation of financial statements, except for Offsetting

statement of cash flow provides information about net cash flows arising from financial activities.

In business combination, an acquirer might obtain control of an acquiree in a variety of ways except resuming sears in board of directors

when accounting for equity the amount recognized in share capital may comprise of one or several classes or shares