(a) With reference to International Accounting Standard (IAS 37) “Provisions, Contingent Liabilities and Contingent Assets” or International Public Sector Accounting Standard (IPSAS 19) “Provisions, Contingent Liabilities and Contingent Assets”:
(i) Describe the TWO criteria that must be met for a provision to be recognised in the financial statements.
(ii) Distinguish between a “present obligation” and a “possible obligation” in the context of liabilities.
(b) Under International Financial Reporting Standard (IFRS 15) “Revenue from Contracts with Customers” or International Public Sector Accounting Standard (IPSAS 47) “Revenue”:
(i) Explain the concept of a "performance obligation" (referred to as a compliance obligation in IPSAS 47).
(ii) Identify the TWO conditions that must be met for a promised good or service to be considered "distinct".
(c) International Public Sector Accounting Standard (IPSAS 24) “Presentation of Budget Information in Financial Statements” requires a comparison between budget and actual amounts. Analyse TWO ways in which an entity may present this comparison in its financial statements.
(d) In the context of International Accounting Standard (IAS 8) “Accounting Policies, Changes in Accounting Estimates and Errors” or International Public Sector Accounting Standard (IPSAS 3) “Accounting Policies, Changes in accounting policies and Errors” distinguish between the “retrospective application” of a new accounting policy and the “prospective recognition” of a change in an accounting estimate.
(e) With reference to International Public Sector Accounting Standard (IPSAS 46) “Measurement”, explain the term "current operational value" citing one key objective that determines its use for property, plant, and equipment.
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