DIPLOMA IN INTERNATIONAL FINANCIAL

REPORTING (IFR - INT) SAMPLE

QUESTIONS - DECEMBER 2022
 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

Question 1
Alpha, a parent company with one subsidiary, Beta, is preparing the consolidated
statement of financial position (SOFP) as at 30 September 20X2.

The following exhibits, available on the left-hand side of the screen, provide information
relevant to the question:

SOFP of Alpha and Beta – draft statements of financial position for Alpha and Beta
1.
as at 30 September 20X2.
2. Alpha’s investment in Beta – provides details of Alpha’s investment in Beta.
3. Intra-group trading – provides details of intra-group trading between Alpha and Beta.
4. Investment in Drax – provides details of an investment in Drax on 1 October 20X1.
5. Restoration costs – provides details of costs relating to the extraction of minerals.

This information should be used to answer the question requirement within

the response option provided.

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

Question 2
Gamma, a listed entity, prepares financial statements to 30 September each year. You
are a trainee accountant employed by Gamma and report to the finance director (FD) of
Gamma. You also own a small number of equity shares in Gamma. One of your key
responsibilities is to prepare the first draft of Gamma’s published financial statements.
You have recently received an email from the FD regarding the financial statements for
the year ended 30 September 20X5.

The following exhibits, available on the left-hand side of the screen, provide information
relevant to the question:

1. Email – an email from the FD.

Attachment 1 to the email – provides details relating to a sale of goods with a two-
2.
year repair service.
Attachment 2 to the email – details the valuation of a property which is being rented
3.
out on short-term leases.

This information should be used to answer the question requirements within your
chosen response option(s).

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

(a) Using the information in exhibits 2 and 3, explain and show how the transactions
described there should be accounted for in the financial statements of Gamma for
the year ended 30 September 20X5.

Notes:
• The mark allocations are indicated in each exhibit.
• Marks will be awarded for BOTH figures AND explanations.
• Ignore taxation.
• Your answer to part (a) should NOT discuss any ethical issues.
(17 marks)

(b) Using the information in exhibit 1, and your answer to part (a) of this question,
compute the earnings per share of Gamma for the year ended 30 September 20X5.

Note: Explanations are NOT required for part (b).

(3 marks)

(c) Using the information in exhibit 1, explain the ethical issues which confront you
as a result of the email sent to you from the finance director.
(5 marks)

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

Question 3
Delta prepares financial statements to 30 September each year.

The following exhibits, available on the left-hand side of the screen, provide information
relevant to the question:

Purchase of assets – provides details of the purchase of a brand name and

1.
inventory during the period.
Interest free loans – provides details of loans to employees made in the year ended
2.
30 September 20X5.
Manufacturing process – provides details of a project to improve a manufacturing
3.
process.

This information should be used to answer the question requirements within your
chosen response option(s).

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

(a) Using the information in exhibits 1 and 2, explain and show how the transactions described there should
be accounted for and reported in the financial statements of Delta for the year ended 30 September 20X5.
(16 marks)

(b) Using the information in exhibit 3, explain and show how the transactions described there should be
accounted for and reported in the financial statements of Delta for the years ended 30 September 20X4 and
20X5.
(9 marks)

Notes:
• The mark allocations are indicated in each exhibit.
• Marks will be awarded for BOTH figures AND explanations.

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

Question 4
You are the financial controller of Omega. The consolidated financial statements of
Omega for the year ended 30 September 20X5 were authorized for issue on 31 October
20X5. These statements were further discussed at a directors’ meeting held on 15
November 20X5. One of the directors, who is not an accountant, has approached you
with some queries relating to these financial statements.

The following exhibits, available on the left-hand side of the screen, provide information
relevant to the question:

Assets of subsidiary – details the assets of a subsidiary of Omega operating in the

1.
farming sector.
Post year end – details of events occurring after the year end and discussed at a
2.
board meeting on 15 November 20X5.
3. Inventory – details of inventory bought from a foreign supplier.

This information should be used to answer the question requirement within

the response option provided.

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

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 Diploma in International Financial Reporting (IFR - INT) Sample Questions - December 2022

Provide answers to the queries raised by one of Omega’s directors detailed in

exhibits 1, 2, and 3, relating to the consolidated financial statements for the year
ended 30 September 20X5.

Note: The mark allocations are indicated in each exhibit.

(25 marks)

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