INTERNATIONAL FINANCIAL REPORTING STANDARDS
FOR COMPESATION PROFESSIONALS[IFRS] EXAM .
1. Which IFRS standard primarily governs employee
compensation?
A. IFRS 9
B. IAS 19
C. IFRS 15
D. IAS 12
Correct Answer: B
Rationale: IAS 19 Employee Benefits governs accounting
for all employee compensation and benefits.
,2. Short-term employee benefits are expected to be
settled within:
A. 6 months
B. 12 months
C. 18 months
D. 24 months
Correct Answer: B
Rationale: Short-term benefits are settled wholly within 12
months after the reporting period.
3. Which of the following is a short-term employee
benefit?
A. Pension
B. Stock options
C. Annual bonus payable within one year
D. Post-employment medical care
Correct Answer: C
Rationale: Bonuses payable within 12 months qualify as
short-term benefits.
,4. Defined contribution plans require the employer to:
A. Guarantee retirement benefits
B. Bear actuarial risk
C. Make fixed contributions only
D. Recognize actuarial gains/losses
Correct Answer: C
Rationale: Employer obligation is limited to contributions;
employees bear risk.
5. Defined benefit plans expose the employer to:
A. No risk
B. Investment and actuarial risk
C. Only credit risk
D. Currency risk only
Correct Answer: B
Rationale: Employer bears both investment and actuarial
risks.
, 6. Actuarial gains and losses under IAS 19 are recognized
in:
A. Profit or loss
B. OCI
C. Equity directly
D. Notes only
Correct Answer: B
Rationale: Remeasurements are recognized in Other
Comprehensive Income (OCI).
7. Which discount rate is used for defined benefit
obligations?
A. Treasury bond rate
B. Corporate bond rate
C. Central bank rate
D. Inflation rate
Correct Answer: B
Rationale: High-quality corporate bond yields are used.
FOR COMPESATION PROFESSIONALS[IFRS] EXAM .
1. Which IFRS standard primarily governs employee
compensation?
A. IFRS 9
B. IAS 19
C. IFRS 15
D. IAS 12
Correct Answer: B
Rationale: IAS 19 Employee Benefits governs accounting
for all employee compensation and benefits.
,2. Short-term employee benefits are expected to be
settled within:
A. 6 months
B. 12 months
C. 18 months
D. 24 months
Correct Answer: B
Rationale: Short-term benefits are settled wholly within 12
months after the reporting period.
3. Which of the following is a short-term employee
benefit?
A. Pension
B. Stock options
C. Annual bonus payable within one year
D. Post-employment medical care
Correct Answer: C
Rationale: Bonuses payable within 12 months qualify as
short-term benefits.
,4. Defined contribution plans require the employer to:
A. Guarantee retirement benefits
B. Bear actuarial risk
C. Make fixed contributions only
D. Recognize actuarial gains/losses
Correct Answer: C
Rationale: Employer obligation is limited to contributions;
employees bear risk.
5. Defined benefit plans expose the employer to:
A. No risk
B. Investment and actuarial risk
C. Only credit risk
D. Currency risk only
Correct Answer: B
Rationale: Employer bears both investment and actuarial
risks.
, 6. Actuarial gains and losses under IAS 19 are recognized
in:
A. Profit or loss
B. OCI
C. Equity directly
D. Notes only
Correct Answer: B
Rationale: Remeasurements are recognized in Other
Comprehensive Income (OCI).
7. Which discount rate is used for defined benefit
obligations?
A. Treasury bond rate
B. Corporate bond rate
C. Central bank rate
D. Inflation rate
Correct Answer: B
Rationale: High-quality corporate bond yields are used.
