Quiz on MFRS Updates and Audit Considerations

The amendment on MFRS 9 under the annual improvements to MFRS Standards 2018-2020 requires the following fees to be included in the 10% test for derecognition of financial liabilities

A. All fees paid by borrower to third parties

B. All fees collected by borrower from third parties

C. All fees paid net of fees collected in dealing with third parties

D. All fees paid net of fees received between borrower and lender

Under the proposed amendment to MFRS 116, any proceeds received from disposal of samples when constructing an item of PPE shall be

A. Deducted from cost of PPE

B. Treated as liability

C. Recognised in P/L

The proposed amendment to MFRS 116 shall be effective for annual reporting periods beginning on or after

A. 1 January 2021

B. 1 July 2021

C. 1 January 2022

The following characteristics as contained in MFRS 101 for a liability to be classified as CURRENT: (you may choose more than 1 option)

A. Entity expects to settle the liability within 12 months after the reporting period

B. A. Entity expects to settle the liability beyond 12 months after the reporting period

C. Entity expects to settle the liability in its normal operating cycle

D. Entity expects to settle the liability beyond its normal operating cycle

E. Entity has the right to defer settlement of liability for at least 12 months after the reporting period

F. Entity does not have the right to defer settlement of liability for at least 12 months after the reporting period

G. Entity holds the liability primarily for the purpose of trading

Based on the proposed amendment to Para 69 of MFRS 101, one of the conditions for an entity to classify a liability as CURRENT is

A. Has the unconditional right to defer settlement of the liability for at least 12 months after the reporting period

B. Does not have the unconditional right to defer settlement of the liability for at least 12 months after the reporting period

C. Has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period

D. Does not have the right at the end of the reporting period to defer settlement for at least 12 months after the reporting period

A liability is classified as current if a condition is breached at or before the reporting date and a waiver is obtained after the reporting date

A. True

B. False