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Exam Code: FRExam Name: Financial Reporting
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FR New Braindumps Ppt Total Q&A: 80 Questions and Answers
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NO.1 According to the IASB's Conceptual Framework for Financial Reporting, which one of the
following statements represents the underlying assumption relating to financial statements?
A. Users are assumed to have sufficient knowledge to be able to understand the financial statements
B. The accounts have been prepared on an accrual basis
C. The business is expected to continue in operation for the foreseeable future
D. The accounting policies used have been disclosed
Answer: C
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NO.2 Bony plc purchased equipment on 1 April 2010 for $100,000. The equipment was depreciated
using the reducing balance method at 25% per annum.
Bony plc prepares accounts to 31 March annually. Depreciation was charged up to and including 31
March 2012. At that date, the recoverable amount of this equipment was $42,000.
According to IAS 36 Impairment of Assets, what was the impairment loss on this equipment
calculated on 31 March 2012?
A. Nil
B. $14,250
C. $25,000
D. $8,000
Answer: B
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