When the classification of items in its financial statements is changed, the entity:

Rather than distributing its excess cash to its shareholders an entity acquired a rare painting. The painting is held for capital appreciation rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business.. The IFRS for SMEs does not explicitly specify how to account for investments in paintings. How should the entity account for its investment in the  painting?

Liabilities that an entity expects to settle in its normal operating cycle are:

Which of the following entities must not describe its financial statements as being in compliance with the IFRS for SMEs even if it is required by law to prepare its financial statements in accordance with the IFRS for SMEs?

How many measurement bases does the IFRS for SMEs specify for the measurement of assets?

If the changes to the equity of an entity during the periods for which financial statements are presented arise only from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy:

Recognition criteria determine when to recognise an item. Measurement is determining the monetary amounts at which to measure an item. Uncertainties about the extent of future cash flows:

Items of dissimilar nature or function:

An entity made an unusually high profit for the year ended 31 December 20X7 because it negotiated a significantly lower cost price for its main raw material at a time when the selling price of its products was rising sharply. Management does not want to make public the unusually high profit because they believe that knowledge of the entity’s profitability would result in their customers seeking to negotiate lower selling prices when purchasing goods from the entity. Consequently, management would like to decrease profit for the year by recognising a provision for unforeseen possible expenses.

Which of the following entities must not describe its financial statements as being in compliance with the IFRS for SMEs even if it is required by law to prepare its financial statements in accordance with the IFRS for SMEs?

Materiality depends on:

Expenses are recognised in comprehensive income (ie profit or loss or other comprehensive income)

Which of the descriptions below best describes the qualitative characteristic ‘reliability’?

Which qualitative characteristics are fundamental to general purpose financial information?

When there is much variability in the duration of the entity’s normal operating cycle, the operating cycle is measured at:

An entity that is not publicly accountable must make an explicit and unreserved statement of compliance with the IFRS for SMEs:

Section 4 Statement of Financial Position of the IFRS for SMEs:

In which of the following situations can an entity that does not have public accountability claim compliance with the IFRS for SMEs in its financial statements:

The accrual basis of accounting that underlies financial information prepared in accordance with the IFRS for SMEs:

Which of the following satisfies the definition of a liability?

Which of the following entities must not describe its financial statements as being in compliance with the IFRS for SMEs even if it is required by law to prepare its financial statements in accordance with the IFRS for SMEs?

In which of the following situations can an entity that does not have public accountability claim compliance with the IFRS for SMEs in its financial statements?

The objective of general purpose financial statements prepared in accordance with the IFRS for SMEs is:

Which of the following is not an element for which there is a concept in Section 2?

The qualitative characteristic ‘prudence’ implies that in preparing financial statements management should