©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
ACCA SBR: IFRS Standards Exam
Questions and Answers
What is the standard relating to adopting IFRS standard for the first time and from when does it apply? -
ANSWER✔✔IFRS 1
From the date of transition
What must an entity do/produce when adopting IFRS standards for the first time (IFRS1)? -
ANSWER✔✔Produce an opening SFP where they must:
- recognise, derecognise & measure assets/liabilities according to IFRS
- put any gain/losses @ transition date to RE
What standard refers to business combinations, and what is the definition? - ANSWER✔✔IFRS 3
Where an entity obtains control over another entity that is a business
What is the definition of a business (IFRS3)? - ANSWER✔✔Where inputs & substantive processes
contribute to the creation of an output
Page 1/6
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
What optional test can be used to assess if acquired assets are NOT a business (IFRS3)? -
ANSWER✔✔Concentration test:
where substantially all of the FV of total asset acquired in concentrated into a single identifiable
assets/group of similar assets
What is the standard for assets held for sale and what situation does this occur? - ANSWER✔✔IFRS 5
CA will be mainly recovered through a sale and the sale is highly probable
What are the criteria to be met for an asset to be held for sale (IFRS5)? - ANSWER✔✔Asset must be
available to sell in its present condition
Must be marketed at a reasonable price
Sale is expected within 12 months
How are assets held for sale measured (IFRS5)? - ANSWER✔✔Lower of CA and FV - cost to sell
No further depreciation should be charged, and it is held under current assets
When is separate disclosure required for discontinued operations (IFRS5)? - ANSWER✔✔Component of
business has been disposed of/held for sale AND
- represents a separate major line/geographical area of business
- part of a single coordinated plan to dispose OR
Page 2/6
FIRST PUBLISH OCTOBER 2024
ACCA SBR: IFRS Standards Exam
Questions and Answers
What is the standard relating to adopting IFRS standard for the first time and from when does it apply? -
ANSWER✔✔IFRS 1
From the date of transition
What must an entity do/produce when adopting IFRS standards for the first time (IFRS1)? -
ANSWER✔✔Produce an opening SFP where they must:
- recognise, derecognise & measure assets/liabilities according to IFRS
- put any gain/losses @ transition date to RE
What standard refers to business combinations, and what is the definition? - ANSWER✔✔IFRS 3
Where an entity obtains control over another entity that is a business
What is the definition of a business (IFRS3)? - ANSWER✔✔Where inputs & substantive processes
contribute to the creation of an output
Page 1/6
, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
What optional test can be used to assess if acquired assets are NOT a business (IFRS3)? -
ANSWER✔✔Concentration test:
where substantially all of the FV of total asset acquired in concentrated into a single identifiable
assets/group of similar assets
What is the standard for assets held for sale and what situation does this occur? - ANSWER✔✔IFRS 5
CA will be mainly recovered through a sale and the sale is highly probable
What are the criteria to be met for an asset to be held for sale (IFRS5)? - ANSWER✔✔Asset must be
available to sell in its present condition
Must be marketed at a reasonable price
Sale is expected within 12 months
How are assets held for sale measured (IFRS5)? - ANSWER✔✔Lower of CA and FV - cost to sell
No further depreciation should be charged, and it is held under current assets
When is separate disclosure required for discontinued operations (IFRS5)? - ANSWER✔✔Component of
business has been disposed of/held for sale AND
- represents a separate major line/geographical area of business
- part of a single coordinated plan to dispose OR
Page 2/6
