Financial Accounting and
Corporate Reporting (FACR)
DESCRIPTIVES and MTQs
Note: These questions are from different students so
multiple questions can be repeated too.
OCT AND EARLIER (2022)
Descriptive:
• IFRS held for sale
• inventory valuation
• temporary difference
• adjusting event
• increase in technology what impact on non current
assets and company report in the financial statement.
Descriptives:
• Define grant related to assets and grant related to
income?
• List factors for the impairment of financial instrument
• inventory ki NRV testing
McQ:
• treatment for accounting estimate IAS 8
• Multiple Numerical question
• borrowing cost,
• PPE
• deferred tax,
• leases
• intangibles
• Consolidation
Descriptives:
• 3 question ifrs 15 s th
• lease k 1 sawal th
• temporary difference
• ppe s boht th
• ias 40 or ias 2 k ek sawal th
• ifrs 5 k ek sawal th
• finance cost k ajeeb question aye th boht
MTQ:
• A company borrowed 7.5 million from local bank at
interest rate of 10% on January 1 the construction also
started at January 1 2019 . The company paid evenly 6
million from 1st march to December and no remaining
loan were paid during the year.excess amount were
invested at 6% return from July 2019 what will be the
amount of borrowing cost to be capitalized at Dec
2019 ?
Descriptive
• Ifrs held for sale
• inventory valuation
• temporary difference
• adjusting event
• increase in teachnology what impact on non current
asset and company report in the financial statement
MCQS
• operating segment external revenue 75%
• lease k intial cost
• borrowing cost 2 mcqs each 4 marks
• impairment recoverable amount
DEC (2022)
• An entity purchased a property 15 years ago at a cost
of Rs. 100000 and have been depreciating it at a rate
of 2% per annum, on the straight line basis. The entity
has had the property professional revalued at Rs.
500,000 . What is the revaluation surplus that will be
the recorded in the financial statements in respect of
this property?
• An entity purchased property for Rs. 6 million on 1 July
1 2013. The land element of the purchase was Rs 1
million. The expected life of the building was 50 years
and its residual value nil. On June 30 2015 the property
was revalued to Rs 7 million, of which the land element
was Rs. 1.24 m and the buildings Rs 5.76 m . On 30
June 2017, the property was sold for Rs 6.8 million.
What is the gain on disposal of the property that would
be reported in SOPL for the year ended 30 June 2017?
• Waris Co. purchased a machine on 1st july 2014 for
Rs .500000. It is being depreciated on a straight line
basis of ten years. Residual value is estimated at
Rs.20000. On 1st January 2015, following a legislation
change in , Waris Co. fitted a safety guard to the
machine . The safety guard cost 25000 and has a useful
life of five years with no residual value. What amount
will be charged to Profit and Loss Statement ?
• Cool Limited accquired a building with a 40 year life for
its investment potential for Rs.8 million on 1 January
2013. At Dec 13 2013, the fair value of property was
estimated at Rs.9 million with costs to sell estimated at
Rs.200000 . If Cool limited uses the fair value model for
investment properties, what gain should be recorded
in SOCI ?
• An 8% convertible loan note was issued on 1st April
2005 at par. Interest is payable in arrears on 31 March
each year. The loan note is redeemable at par on 31st
March 2008 or convertible into equity shares at the
option of the loan notes holders on the basis of 30
shares for each 100 of loan. A similar instrument
without the conversion option would have an interest
rate of 10% per annum.The present value of 1
receivable at the end of each year based on discount
rates of 8% nd 10% are: Refer the tables. What amount
will be credited to equity on 1st April 2005 in respect
of financial instrument?
FEB (2023)
Descriptives:
• A damage that impact asset
• Change in legal and economic conditions
• Situations in which there are changes in deferred tax
asset and liability even if there are no changes in
taxable temporary difference
• Intangible assets recognized in business combination
(ifrs 3)
• Condition of contract being recognized as asset
• Lease
• Impairement
• Limitations of retrospective change
Mcqs:
• Tax
• Intangible assets
• Leases
• Impairment
• cash flows from investing activities
• revenue from customers
Descriptives
• 1 sawal es tara be aya tha k intangible assets ka
upward revalidation hota hai ya nahi?
• Explain how the terms 'Provision' and 'Contigent
Liability' can distanguish from each other?
• If government grant becomes repayable than account
for as a a change in?
Descriptives:
• accounting policies
• Estimate
• Material error
• Immaterial error
MCQS:
• When a gain on a bargain purchase (Negative goodwill)
arises,Ifrs 3 Business Combination requires an entity to
first of all review the measurement of the assets,
liabilities and consideration transferred in respect of
the combination. When a bargain purchase is
confirmed, how is it then recognised?
• What is the primary reason why discontinued
operations are presented separately within financial
statement.
• Which of the following explains the value that relevant
information contains?
• A company receives a grant of 1 M toward the
purchase of a machine on January 2003. The grant will
be repayable if the entity sells the asset within 4 yrs,
which it does not intend to do so. The asset has a life
of 5 yrs. What is deferred income liability balance at 30
June 2003.
• Which of the following statements about provision is
correct.
A) Future operating losses cannot be provided for
B) Provision should be accounted for prudently,
reflecting the maximum that could possibly be paid out
C) Changes in provision should be applied
retrospectively, adjusting the prior years financial
statement
MTQs
• Cost which does not include in the cost of inventory.
• Criteria for the non current assets held for sell
• Deffered tax solve question
• Ways to reduce taxable profits
• Conceptual framework
• Financial liabilty,assets and equity instruments
defination.
• Cash flow items diye hoe thy batana tha konsi activity
ma aty hain for ex investing activities etc.
• Humza ka sale and lease back aya tha.
Descriptive:
Mr zahid is currently selling 400000 units into the market
and operating at 80% capacity! Zahid bhai is now want to
sell access capacity through supermarket but super
market will use its own label to sell product! Comment
on decision which will be taken by MR zahid (
Descriptive:
• aapka intangible asset ka Aaya hua tha intangible asset
ki patni kaun kaun se point puche gaye the
• value in use ka tha
• ek goodwill ka thaa
Descriptives:
• Temeporay difference kya arise hota ha aur uski 3
example
• Aik provision ka case aya tha kae company nae fault
product sold ki ha aur customer nae case kardya ha
company kae lawyer bol rahae han kae 80% chance
han kae customer jeet jye ga batna tha kae kya amount
recognize hoga SOFP mae
• Aik ifrs 3 kae aya tha Kae categorize karo ye Intangible
Asset kyn ha aur kha record hoga
• impairment
• financial instrument ka tha finance cost ki amount
batni thi
For any other Study material (PDFs of notes, past
papers, MCQs) of any course from OL-1 to SL-2,
contact on:
Name: Arib Sarfaraz
Phone: 03352232888
