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ACCA FR Chapter 1 IASB Conceptual Framework Questions

VIVA

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  2. Hi There,

    I see that some people have already metioned this but I’ll just go ahead and mention it just to let you know that it still han’t been updated.

    the answer to question 6 is Understandability and the question will mark correctly but the answer box is showing ‘relevance’ as the answer.

    Best regards

  4. This is the correct answer for question 5 as per my selection. However, this was marked wrong.

    • Income
    Income is increases in assets (or decreases of liabilities) that result in increases in equity, other
    than contributions from equity participants.

  7. Question 4: PV is not and can never be a basis for measurement in the financial statement but can form basis for estimates. According to the conceptual framework, 1. Historical cost, 2. Fair Value(as in Net realizable value), 3. Value in use, 4. Current Cost (Carrying Amount or book value) are recognized.

    Current Value (NOT PRESENT VALUE) includes fair value, Value in use and Current cost.

    Therefore, the answer to question 4 in ‘Present value’ as its the odd of them all.

    Cheers!

  9. Hi Harry,
    Please I think the answer for question 4 should be “Realisiable value” fir the measurement basis as per the updated conceptual framework. If not,can you explain why it’s rather “Value in use”.
    Thank you

  13. Dear professor, can you take an example of Q5 “increase in equity from equity participants”?
    I am a litttle bit confuse.
    Does it mean that if I am an investor, then I buy a company stock, when the stock price higher than the amount I invest, then I sell out the stock and gain.
    This gain is “increase in equity from equity participant” so it can not be calculated as company income right?

    I am not sure about who are equity participants, and when their equity increase.

    Thanks

    • “increase in equity from equity participants” means that inflows from the sales of shares for instance “right issues” cannot be termed an “Income”. The proceed from such will increase equity via O/S and S/P but never “Retained Earnings”. Revaluation surplus is also an income which is recognized in OCI.

  14. Question 6 is asking for an enhancing characteristic but the answer is a fundamental characteristic.
    I believe it should be understandability and not relevance.
    May you please kindly check it and give us feedback back.

  15. I suggest tutor should review answer to question no. 6, It should be “understandibility” and not “Relevane” because the question is asking about enhancing qualitative characteristics and not fundamental characteristics.

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