Reference no: EM13576483

1. An assumption inherent in a companys IFRS statement of financial position is that companies recover and settle the assets and liabilities at

a. the amount that is probable where "probable" means a level of likelihood of at least more than 50%.

b. the present value of future cash flows.

c. their reported amounts.

d. their net realizable value.

2. Stephens Company has a deductible temporary difference of $2,000,000 at the end of its first year of operations. Its tax rate is 40 percent. Stephens has $1,800,000 of income taxes payable. At the end of the first year, after a careful review of all available evidence, Stephens determines that it is probable that it will not realize $200,000 of this deferred tax asset. At the end of the second year of operations, Stephens Company determines that it expects to realize $1,850,000 of this deferred tax assets. On Stephens Company's statement of financial position at the end of its second year of operations, what is the amount of deferred tax asset?

a. $800,000

b. $740,000

c. $60,000

d. $720,000

3. Which of the following is true regarding whether IFRS specifically addresses the accounting and reporting for effects of changes in accounting policies?
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4. Which of the following is shown on a statement of cash flows?

a. A share dividend

b. A share split

c. An appropriation of retained earnings

d. None of these