FR B Revenue, performance and earnings per share

What is the first step of the IFRS 15 five-step model?

• 1 Identify the contract with the customer
• 2 Recognise revenue
• 3 Identify the performance obligations
• 4 Allocate the transaction price

A bundle of a product (stand-alone price $600) and a service ($400) is sold for $900. How much is allocated to the product?

• 1 $450
• 2 $600
• 3 $540
• 4 $500

A contract has a price of $1,000,000. Costs to date are $300,000 and total estimated costs are $750,000. Using the cost-to-cost method, what is the revenue to date?

• 1 $300,000
• 2 $400,000
• 3 $750,000
• 4 $250,000

An entity that acts as an agent recognises revenue at:

• 1 The gross amount of the sale
• 2 Zero
• 3 The cost of the goods
• 4 The amount of its fee or commission

A non-current asset held for sale is measured at:

• 1 The higher of carrying amount and fair value
• 2 The lower of carrying amount and fair value less costs to sell
• 3 Cost
• 4 Fair value

How is a change in accounting estimate applied?

• 1 Prospectively
• 2 By restating the prior year
• 3 By adjusting opening reserves
• 4 Retrospectively

A rights issue is made at a price below the market price. Why is the earlier number of shares adjusted in EPS?

• 1 The shares are worth nothing
• 2 The company is insolvent
• 3 The shares have no voting rights
• 4 The issue contains a bonus element

A 1 for 5 rights issue is made at $2.00 when the market price is $3.00. What is the theoretical ex-rights price?

• 1 $2.5000
• 2 $3.0000
• 3 $2.8333
• 4 $2.0000

Which statement about diluted EPS is correct?

• 1 It shows the effect of potential ordinary shares such as convertible debt and options
• 2 It ignores share options
• 3 It is calculated on preference shares
• 4 It is always higher than basic EPS