1.1 How does the conceptual framework define an asset? (0.5 Mark) a. A present economic resource, which is a right that has potential to produce economic benefits, owned by an entity as a result of past events. b. A present economic resource over which an entity has legal rights and from which the economic resource is a right that has the potential to produce economic benefits. c. A present economic resource controlled by an entity as a result of past events and from which the economic resource is a right that has the potential to produce economic benefits. d. A present economic resource to which an entity has a future commitment as a result of past events and from which the economic resource is a right that has the potential to produce economic benefits. 1.2 Which one would be classified as a liability? (0.5 Mark) a. Dexter's business manufactures a product under licence. In 12 months, the licence expires, and Dexter will have to pay BD50,000 for it to be renewed. b. Reckless purchased an investment 9 months ago for BD120,000. The market for these investments has fallen and Reckless' investment is valued at BD90,000. c. Carter has estimated the tax charge on its profits for the year just ended as BD165,000. d. Expansion is planning to invest in new machinery and has been quoted a price of BD570,000. 1.3 Which does the conceptual Framework identify as an underlying assumption? (0.5 Mark) a. Going concern b. Materiality c. Substance over form d. Accruals 1.4 The process for developing an International Financial Reporting Standard involves a number of stages. Following receipt and review of comments on a Discussion Paper, which will be the next step undertaken by the IASB? (0.5 Mark) a. Publication of Exposure Draft. b. Establishment of an Advisory Committee. c. Consultation with the Advisory Committee. d. Issue of a Final IFRS