F7真题三套选择题-含答案.pdf

F7 Exercise June 2015 Q1 Faithful representation is a fundamental characteristic of useful information within the IASB’s Conceptual framework for financial reporting. Which of the following accounting treatments correctly applies the principle of faithful representation? A. Reporting a transaction based on its legal status rather than its economic substance B. Excluding a subsidiary from consolidation because its activities are not compatible with those of the rest of the group C. Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to equity shares as debt (liability) D. Allocating part of the sales proceeds of a motor vehicle to interest received even though it was sold with 0% (interest free) finance Answer D The substance is that there is no ‘free’ finance; its cost, as such, is built into the selling price. Q2 Which of the following statements relating to intangible assets is true? A. All intangible assets must be carried at amortised cost or at an impaired amount; they cannot be revalued upwards B. The development of a new process which is not expected to increase sales revenues may still be recognised as an intangible asset C. Expenditure on the prototype of a new engine cannot be classified as an intangible asset because the prototype has been assembled and has physical substance D. Impairment losses for a cash generating unit are first applied to goodwill and then to other intangible assets before being applied to tangible assets Answer B A new process may produce benefits (and therefore be recognised as an asset) other than increased revenues, e.g. it may reduce costs. Q3 Each of the following events occurred after the reporting date of 31 March 2015, but before the financial statements were authorised for issue. Which would be treated as a NON-adjusting event under I