International Financial Reporting Standards forCompensation Professionals Exam
Last exam update: Jul 20 ,2024
Page 1 out of 6. Viewing questions 1-15 out of 89
Question 1
Which of the following plans obliges an employer to pay a specified amount of benefits to the employee?
A. Post-employment plan
B. Defined contribution plan
C. Defined benefit plan
D. Bonus plan
Answer:
C
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Question 2
In a defined contribution benefit plan, who assumes risk?
A. Employees
B. Employers
C. Both employees and employers
Answer:
A
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Question 3
The profit-sharing plan of Company ABC requires the company pay a specified proportion of its profit for the year to employees who serve throughout the year. If no employees leave during the year, the total profit-sharing payments for the year will be 3% of profit. The company estimates that staff turnover will reduce the payments to 2.5% of profit. What does Company ABC recognize as a liability and an expense?
A. 0.5% of profit
B. 2.5% of profit
C. 3% of profit
D. 5.5% of profit
Answer:
B
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Question 4
What is a constructive obligation?
A. When a company recognizes the expected cost of profit-sharing and bonus payments
B. When a company has no realistic alternative but to make payments
C. When a change in the companys informal practices would cause unacceptable damage to its relationship with employees
D. The required accounting entry for liabilities or accrued expenses or cash paid
Answer:
C
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Question 5
When does a present obligation exist?
A. When the employee renders service
B. When the company has no realistic alternative but to make the payments
C. When a change in the companys informal practices would cause unacceptable damage to its relationship with employees
D. When the company recognizes the expected cost of profit-sharing and bonus payments
Answer:
B
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Question 6
Why is accounting for short-term employee benefits generally a straightforward process?
A. Because no actuarial assumptions are required to measure the obligation or cost and there is no possibility of any actuarial gain or loss
B. Because short-term employee benefit obligations are measured on a discounted basis
C. Because short-term employee benefits are not provided in exchange for the service of the employee
D. Because the employer is required to incorporate actuarial assumptions into measurement of the obligation and the expenses
Answer:
A
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Question 7
Profit-sharing and bonuses are an example of which kind of employee benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
D
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Question 8
Defined contribution plans are an example of which kind of employee benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
B
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Question 9
Paid annual leave and paid sick leave are examples of which kind of employee benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
A
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Question 10
An offer of redundancy is an example of which kind of employee benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
C
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Question 11
Employee benefits provided in exchange for the end of an employees employment are considered what kind of benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
C
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Question 12
Employee benefits that are not short-term, post-employment or termination benefits are considered what kind of benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
D
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Question 13
Employee benefits that are payable after the completion of employment are considered what kind of benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
B
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Question 14
Employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting people in which the employee rendered the related service are considered what kind of benefits?
A. Short-term benefits
B. Post-employment benefits
C. Termination benefits
D. Long-term benefits
Answer:
A
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Question 15
IAS 19 classifies employee benefits into four main categories. Which of the following best represent those categories?
A. Wages, short-term benefits, long-term benefits, termination benefits
B. Wages, profit-sharing, bonuses, non-monetary bonuses
C. Short-term benefits, post-employment benefits, long-term benefits, termination benefits
D. Wages, short-term benefits, bonuses, termination benefits