QUIZ!

Let's test our understanding!

1. In the following cases, determine if ABC Company can give a statement of compliance with IFRS and the reason for your answer.

a) It has departed from certain requirements of IAS 19 as its management is of the view that, the requirement will be misleading and will be in conflict with the objective of financial statements

b) Governing laws applicable in ABC's country requires departure from the requirements of IAS 19.

2)* Using the following items below, prepare the statement of profit or loss and financial position as at 31st December 2014:

                                       N
Revenue 900,000
Share capital 400,000
Retained earnings 150,000
Non Current Asset 300,000
Receivables 180,000
Payables 120,000
Inventory (1/1/14) 200,000
Purchases 650,000
Operating expenses 200,000
Bank balance 410,000
Other income 370,000

Other Notes:
• Inventory amounted to N350,000 being the cost. It is estimated that, it can be sold for N420,000 after incurring a cost of N120,000.
• Income tax is estimated at N170,000
*(Q2 is culled from Teach yourself IFRS)

Make an attempt!

You can comment below, the answers would be given tomorrow.

Have a wonderful day!