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QUESTION NO: 1
When an employee has provided service in exchange for benefits to be paid in the future, what is it considered in accounting terms?
A. The employee value proposition
B. A long term benefit
C. A noncurrent expense
D. A liability
Answer: D
QUESTION NO: 2
Recognition of revenue when earned and the matching of expenses when incurred describes which of the following practices?
A. Business accounting
B. Cash basis accounting
C. IASB accounting
D. Accrual accounting
Answer: D
QUESTION NO: 3
Defined benefit pension commitments often represent a company's largest single financial liability. IAS 19 was amended as of January, 2014. What does this amendment require?
A. That surplus or deficit of a pension fund be detailed in the financial statement
B. That any existing deficit of a pension fund be detailed in the financial statement
C. That any projected deficit of a pension fund be detailed in the financial statement
D. That companies state whether they have a defined benefit or defined contribution plan in the financial statement
Answer: A
QUESTION NO: 4
Employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting people in which the employee rendered the related service are considered what kind of benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer: A
QUESTION NO: 5
Why is accounting for defined benefits plans one of the most complex issues in International
Financial Reporting Standards?
A. Because it involves incorporating actuarial assumptions into measurement of the obligation and the expenses
B. Because defined benefits plan obligations are not measured on a discounted basis
C. Because defined benefits plans must be settled within ten years after the employee renders the related service
D. Because the employer is not allowed to incorporate actuarial assumptions into measurement of the obligation and the expenses
Answer: A
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Updated: May 26, 2022