Question 1. Enterprise Co is heavily involved in developing a new production process. In the year to 31 March 20X1 the amount of expenditure incurred on development costs could be analysed as follows:

	Euro
1 April 20X0 to 30 September 20X0	18,400
1 October 20X0 to 31 March 20X1	6,500
Total	24,900

On 1 October 20X0 Enterprise Co demonstrated that the production process met the recognition criteria of IAS 38 Intangible Assets. The amount estimated to be recoverable from the process is 21,000. At what amount should the production process be recognised as an intangible asset at 31 March 20X1 in accordance with IAS 38?

6,500

18,400

21,000

24,900

Question 2. According to the IASB's Conceptual Framework for Financial Reporting, which of the following meets the definition of an asset

$10,000 spent to develop a list of customers and their purchase preferences

$25,000 invested in loan stock of another company

$19,000 spent to repair damage to the roof of a building after a storm

$22,000 spent on an advertising campaign to launch a new product

Question 3. On 15 December 20X0, the directors of Restless Co formally minuted their decision to dispose of the entity's 60% controlled subsidiary Loser Co. No public announcement has been made nor have the shares been formally put on sale. The disposal is expected to be completed in the second quarter of 20X1. How should Restless Co account for Loser Co in the financial statements for the year ended 31 December 20X0, in accordance with IFRS 10 Consolidated financial statements?

Loser Co will be excluded from consolidation because control is expected to be temporary

Loser Co will continue to be consolidated within the group financial statements

The expected gain or loss on disposal will be included in the statement of profit or loss and the estimated net proceeds will be included at net realisable value within current assets

Loser Co will not be consolidated and instead be measured at the equity value on 15 December 20X0.

Question 4. Investco Co had its non-current assets valued on 1 July 20X0. The assets have increased in value in recent years but are not subject to volatile increases in their fair value. How frequently should Investco revalue its non-current assets under IAS16 Property, Plant and Equipment?

Annually

With sufficient regularity to ensure that carrying value is not significantly different from fair value

Every five years

Only if there is volatile movement

Question 5. Which of the following is a stated purpose of the IASB's Conceptual Framework for Financial Reporting?

To assist preparers when dealing with topics not covered by an IFRS Standard

To provide guidance on filing financial statements

To identify minimum disclosure on the face of financial statements

To set out the standard format for the reconciliation of financial statements to tax computations