T7 International Financial Reporting Standards for Compensation Professionals Exam Questions and Answers

Past service cost

Current service cost

Net interest on the net defined benefit liability (asset)

Time value of money

Cash inflows, cash outflows, payment of dividends

Operating activities, cash inflows, cash outflows

Cash sales, investing activities, payment of dividends

Operating, investing, and financing activities

It ensures neutrality on the part of the company’s accounting department

It guarantees that all information is free from error

It is useful if information represents what it purports to represent

It indicates that accountants have confirmed all of the data

A residual interest in the assets of the entity after deducting all its liabilities

Faithful representation of the amount paid for a given item

Amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction

Quality of information that confirms users’ earlier expectations

Comparability

Verifiability

Relevance

Timeliness

Net defined benefit liability (asset)

Asset ceiling

Fair value

Net present value

Re-measurement method

Fair value method

Net present value method

Projected unit credit method

Comparability

Relevance

Faithful representation

Verifiability

Neither the recognition of revenue nor the recording of expense necessarily involves the receipt or payment of cash

It rests on a primary guiding principle, which is recognition

The recognition of revenue involves the receipt or payment of cash, while the recording of expense does not

It entails recording income or expenditure only when money comes into or leaves the company

Complete, neutral, freedom from error

Assets, liabilities, equity

Predictive value, confirmatory value, relevance

Comparability, verifiability, timeliness