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A provision shall be reviewed __________ and adjusted to reflect the current best estimate.CorrectIncorrect
If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be __________.CorrectIncorrect
A provision may be used not only for expenditures for which the provision was originally recognised, but also for similar expenditures provided the same level of risk and uncertainty.CorrectIncorrect
Which of the following is more likely to be an example of restructuring?CorrectIncorrect
When does the obligation arise for the sale of an operation?CorrectIncorrect
Which of the following expenditures shall be included in the restructuring provision?CorrectIncorrect
What shall an entity disclose for each type class of provision?CorrectIncorrect
An entity X has become subject to an obligating event on 1 January 20X5. As a result, it is committed to expenditure of $1 million in 3 years’ time. An appropriate discount factor is 6%. What is the amount of initial measurement of the provision?CorrectIncorrect
An entity Z manufactures kid’s shoes and has factories across the country. The entity has decided to shut down one of its factories as a result of poor performance, which resulted in a number of the following events:
• The entity has reallocated some staff to the nearest factory ($50) and had some stuff reductions ($30).
• Some manufacturing assets were moved to other factories ($250).
• The entity has to terminate its lease agreement for factory premises and will have to pay $175 of a penalty.
• The entity incurred consulting costs for restructuring ($15) and has already communicated restructuring to the employees.
What amount of provision shall the entity recognise with regard to the shutdown of the factory?CorrectIncorrect
An airline X owns 5 aircraft. All of them were purchased on 31 December 20X5. According to the local regulator, airlines are required to overhaul their aircrafts every five years. Which of the following statements are correct?CorrectIncorrect