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1.Intangible assets that are amortised are no longer subjected to impairment testing.  2.Research of market potential prior to the launch of a product is permissible to be capitalised as an intangible asset. 3.Internally generated brands, mastheads, publishing titles and customer lists are permitted to be recognised as intangible assets. 4.AASB.
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22.Employee benefits include:   A. wages and salaries, sick leave, payroll tax, annual leave. B. superannuation, wages and salaries, sick leave and annual leave. C. sick leave, annual leave, unemployment benefits, salaries and wages. D. annual leave, wages and salaries, post-employment benefits, payroll tax. 23.An employee whose contract for service includes an entitlement to 1 week's cumulative sick leave per.
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1.AASB 119 Employee Benefits prescribes that all obligations relating to wages and salaries, annual leave and sick-leave entitlements, regardless of whether they were expected to be settled within 12 months of the reporting date be measured at nominal (undiscounted) amounts.  2.In a long-service leave liability to an employee, a conditional.
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41.Net present value (NPV) method has been considered as an alternative valuation technique to historical cost for biological assets. The NPV method may be described as:   A. an accounting method for projecting the revenues and expenses associated with an asset or entity. B. an economic concept based on the notion that an asset's value.
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52.AASB 119 defines 'employee benefits' as:    A. salaries and wages, and associated on-costs. B. all cash payments made to employees. C. all cash payments made to employees in their roles as employees. D. all forms of consideration given up by an entity in exchange for service rendered by employees. 53.A non-contributory superannuation fund means:.
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11.A non-cancellable lease, which transfers the risks and rewards associated with asset ownership, can still be terminated early with the permission of the lessor. 12.In the situation where there is an unguaranteed residual in a finance lease agreement, the leased asset will be recorded in the books of the lessee.
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1.In a convertible note, AASB 132 Financial Instruments: Recognition and Measurement requires the holder of such a financial instrument to present the liability component and the equity component separately on the statement of financial position. 2.For a designated cash flow hedge, AASB 139 Financial Instruments: Recognition and Measurement requires the.
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51.In disclosing liabilities, a reporting entity:   A. discloses on the basis of the current/non-current liability dichotomy. B. has a choice, based on the notions of relevance and reliability to disclose liabilities either on the basis of the current/non-current liability dichotomy or on the basis of order of liquidity. C. has a choice, based on the principle.
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1.Concept of control is problematic for heritage assets but not so for biological assets.  2.AASB 101 requires heritage assets to be disclosed separately on the statement of financial position. 3.In accordance with AASB 141 Agriculture, biological assets may be classified as part of property, plant and equipment in the statement.
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11.Development costs are less likely to meet the test for deferral than research costs. 12.Compared to the requirement in the US, the treatment of research and development costs in Australia is less conservative (that is, likely to result in higher profits). 13.AASB 138 requires that all intangibles, whether purchased or.
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11.A necessary condition for a provision to be recognised is that there is a legal obligation to make a future sacrifice of economic benefits 12.Some researchers have found that firms can benefit from being in financial distress. 13.In terms of accounting treatment debentures and bonds are the same thing. 14.A.
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61.Las Vegas Ltd sells second hand luxury cars of various makes and models, and uses the FIFO cost flow assumption to ascertain the cost of ending inventory. This would be incorrect because:   A. this is not the practice used by other car dealerships. B. this method will overstate profit. C. this method will not capture unique.
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21.Which of the following is not a definition in AASB 102 on inventories?   A. Assets in the form of materials or supplies to be consumed in the production process. B. Assets in the process of production for sale. C. Raw materials to be used in maintaining machines that prepare goods for sale. D. Assets held for sale in.
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61.The fact that a preference share is redeemable:   A. makes it a financial liability. B. makes it an equity instrument. C. makes it a compound financial instrument. D. does not automatically mean that it is a financial liability. Conditions and rights attaching to the share need to be considered before it can be classified as either a financial.
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62.Entity A contributes to a defined benefit superannuation plan for its employees. It calculates the following: The $786 represents:    A. the expense to be recognised in the statement of comprehensive income. B. the asset to be recognised in the statement of financial position. C. the liability to be recognised in.
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61.Paragraph 47 of AASB 117 requires that for a finance lease, the lessor must disclose:   A. the guaranteed residual values accruing to the lessor. B. unearned finance income. C. contingent rents recognised as expenses in the period. D. the guaranteed residual values accruing to the lessor and unearned finance income. 62.What characteristic(s) of land means that the lessee does.
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62.Where there is a redemption of preference shares 'out of profit':   A. The redemption is recorded in the appropriations section of the profit and loss account. B. The redemption is recorded as an expense. C. The redemption is recorded as a liability and is amortised over a maximum of five years. D. The redemption is not recorded in.
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51.A lease involving land and buildings:   A. must be recorded as an operating lease as land has an indefinite life. B. requires two separate leases to be recorded, one for the land and another for the building. C. will still require a determination to be made as to whether the lease constitutes a finance or operating.
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51.Which of the following statements is correct with respect to accounting for biological assets as required in AASB 141?   A. A biological asset may initially be recognised at cost when market-determined prices or value are not available and for which alternative estimates of fair value are not available. B. If a biological asset is.
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32.What discount rate does AASB 119 require to be used to discount estimated future cash outflows associated with the relevant employee entitlements?   A. risk-adjusted, organisation-specific discount rate B. market-determined, organisation-specific discount rate C. inflation adjusted, real rate of return required on equity financing D. the interest rate on high quality corporate bonds with terms to maturity that match.
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22.Double entry accounting requires that:    A. the claims held by external parties equal the claims held by the owners. B. the total assets of an entity equal the total of the claims held by external parties plus those claims held by the owners. C. the liabilities of the entity equal its total assets.
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11.Non-vesting sick leave that has accumulated will be paid to employees when their employment ceases. 12.Long-service leave that is payable beyond 12 months after the financial year is to be measured at its present value. 13.Long-service leave must be accrued and recorded as a liability from the first day of.
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61.Which of the following items are not within the scope of AASB 141 Agriculture?   A. pigs B. carcass C. sausages D. cattle 62.Margaret Ltd has a vineyard and at the end of reporting period 30 June 2012 the following information is available: What is the change in fair value less estimated point-of-sale costs of the vines.
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1.As a residual interest, equity ranks after liabilities in terms of a claim against the assets of a reporting entity.  2.If a partly paid share issue is oversubscribed and the shares are allocated on a pro rata basis, the excess application monies must be refunded to all subscribers. 3.An allotment.
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1.In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets some present obligations are allowed to be disclosed in the notes to the financial statements.  2.In a constructive obligation where the entity retains discretion to avoid any future sacrifice of economic benefits, no liability should be recognised in the.
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42.A redeemable preference share is one that may be:   A. converted into debt at the option of the shareholder. B. converted into cash at the option of either the company or the shareholder. C. forgiven any future calls where the company has profits in excess of specified levels. D. have any dividends converted into further preference shares rather.
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51.As part of adopting IFRS, goodwill acquired in a business combination is no longer amortised. Instead, the acquirer shall test goodwill for impairment (AASB 3 Business Combinations). When is goodwill considered to be impaired?   A. If the recoverable amount of the cash generating unit is greater than the unit's carrying amount. B. If the.
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31.Some research has shown that being in financial distress may not be all bad news for an entity because:   A. Investors will see this as an opportunity to buy into a company that can really only improve. B. Existing managers will want to be released from their contracts allowing new ideas to be employed. C. There.
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41.When debentures are issued at a discount:   A. the discount represents the cost of attracting the funds and should be recognised as an expense. B. no further entries are required because the discount is calculated prior to receipt of the funds and therefore will not be recorded. C. the effect interest method is used to calculate.
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21.Features common to heritage assets are that they typically:   A. are unique, are aspects of the natural environment (for example, parks) and cannot be replaced. B. have no alternative use, cannot be replaced and generate negative net cash flows. C. are self-generating, individually unique and generate negative net cash flows. D. have no alternative use, cannot be replaced.
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31.Arguments for the use of financial valuations of heritage assets to fulfil the accountability and performance evaluation functions of accounting statement preparation include:   A. The funds contributed to government departments cannot be effectively tracked unless valuations of heritage assets are included in financial statements. B. Managers of heritage assets need to ensure that they.
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1.Contingent rent is included in the determination of minimum lease payments under AASB 117 Leases.  2.The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit to the lease, or if this is not practicable to do so, the lessor's.
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21.The central accounting issue associated with leases is:   A. the timing of the recognition of the lease payments. B. whether or not the leased assets should be treated as assets of the lessee. C. the treatment of provisions for the repairs and maintenance on leased assets. D. the method of recording any commitment to guarantee the value of.
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41.Under AASB 117, operating leases require the following disclosures by lessees:   A. the total of future minimum sublease payments expected to be received under non-cancellable subleases at the statement of financial position date. B. a general description of the lessee's significant leasing arrangements. C. No disclosures are required as operating leases are expensed each year. D. the total.
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21.Identifiable intangible assets are those intangible assets that:   A. have been purchased by the entity from external parties. B. have an unlimited life. C. can have a value placed on them separately from other assets of the entity. D. cannot be separately sold. 22.Examples of intangible assets include:   A. loyal customers. B. patents and trademarks. C. provisions. D. loyal customers, patents and trademarks. 23.Examples of elements of a.
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21.The present obligation component of a liability must be based on:   A. a legal obligation only. B. a social obligation. C. a contractual obligation. D. none of the given answers. 22.What is the treatment of contingent liabilities in the financial statements?   A. Contingent liabilities are to be recognised as a separate category in the statement of financial position, with a clear.
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1.AASB 102 Inventories applies to biological assets related to agricultural activity.  2.The first-in, first-out (FIFO) method assumes that items remaining in inventory at the end of the period are those most recently purchased or produced. 3.In periods where production costs or purchase prices of inventory items do not change, it.
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