Question bank — IAS 1 — Presentation of Financial Statements
65 questions in FR/EN/ES, scored by the real scoring engine.
The complete set of financial statements and its components1 question
Fair presentation of position, performance and cash flows1 question
The explicit and unreserved statement of compliance with IFRS1 question
Departure from a requirement, an extremely rare case1 question
Management's going concern assessment3 questions
- An entity that made a profit for the year is exempt from assessing its ability to continue as a going concern when it prepares its financial statements.True / falseL1
- When finalising the accounts for 2026, the management of Aube SA decided to liquidate the entity in the first half of 2027 and acknowledges that there is no realistic alternative (case facts). How must the financial statements for 2026 be prepared?Single choiceL2
- Which statements about the going concern assumption are correct? More than one answer is possible.Multiple choiceL1
The accrual basis, except for cash flow information3 questions
- Which of the statements in a complete set of financial statements is not prepared on the accrual basis of accounting?Single choiceL1
- Under IAS 1, an entity recognises its income in the statement of profit or loss when it receives the cash, the cash basis applying to all of the financial statements.True / falseL1
- Orion SA closes its books on 31 December 2026. It delivered goods in December 2026 (the income is earned in 2026 under the standard that governs it, case fact) and will collect the invoice only in February 2027. An analyst summarises the treatment; which of her sentences is wrong?Single choiceL1
Materiality and aggregation of similar items3 questions
- Items of a dissimilar nature or function are presented separately in the financial statements, unless they are immaterial.True / falseL1
- In its statement of profit or loss, Vega SA presents rent of EUR 410,000, which is material. It also has three small expenses of different natures: subscriptions (EUR 5,000), donations (EUR 4,000) and stamp duties (EUR 3,000). Case convention: none of these three expenses is material, individually or together. How may Vega present these items?Single choiceL2
- Lumen SA presents an "Other income" line of EUR 150,000, made up of scrap sales (EUR 70,000, every year), operating grants (EUR 60,000, every year) and an insurance indemnity (EUR 20,000, exceptional). Profit for the year is EUR 700,000. Case convention: the analysts who follow Lumen ask for scrap sales and grants separately (case data, not a threshold of the standard). Write a short note stating whether Lumen may keep a single line, distinguishing rule, case facts and professional judgement.JudgmentL3
Offsetting of assets and liabilities, income and expenses1 question
Reporting frequency: at least annual2 questions
Comparative information for the previous period3 questions
- The comparative information for the preceding period may be limited to the totals and subtotals of each financial statement of the period.True / falseL1
- Nova SA prepares its financial statements for 2026. What comparative information must it present as a minimum for the amounts in those statements?Single choiceL2
- In its 2025 notes, Orme SA described a dispute with a supplier, with a claim of EUR 300,000. In 2026 the dispute is still ongoing, with no new ruling. Management proposes not to repeat the 2025 narrative description in 2026, on the grounds that "the amount has not changed". Write a short justification stating whether this proposal complies with the requirement for comparative information.JudgmentL2
Consistency of presentation and classification2 questions
- An entity may change the presentation and classification of items in its financial statements every year, according to the preference of its management.True / falseL1
- Taurus SA used to classify its transport costs among administrative expenses. After reviewing its financial statements, its management concludes, following a documented analysis, that classification among distribution costs is more appropriate; no standard requires this change (case facts). Is this change of classification possible?Single choiceL2
The minimum line items of the statement of financial position4 questions
- The statement of financial position presents line items separately when the items concerned are sufficiently different in nature or function.True / falseL1
- Which statements about the structure of the statement of financial position are correct? More than one answer is possible.Multiple choiceL1
- A trainee summarises the requirements of IAS 1 on the statement of financial position of Argan SA. Which of the trainee's sentences is wrong?Single choiceL1
- Kappa SA is preparing its statement of financial position. Which statements are consistent with IAS 1? (Several answers.)Multiple choiceL1
Current and non-current, or order of liquidity4 questions
- A deferred tax liability expected to reverse within 12 months after the closing date is classified as a current liability.True / falseL1
- Prisme SA, a financial services company, considers that presenting its assets and liabilities in order of liquidity gives reliable and more relevant information than a current / non-current classification (documented judgement, case fact). May it adopt that presentation?Single choiceL2
- Which statements about the current / non-current distinction are correct? More than one answer is possible.Multiple choiceL1
- Delta SA presents a statement of financial position with current and non-current classifications (case fact). Its deferred tax asset, which management expects to recover within the next six months, may be classified as a current asset.True / falseL1
The criteria for classifying an asset as current3 questions
- An asset held primarily for the purpose of trading is classified as a current asset.True / falseL1
- Delta SA's normal operating cycle is 18 months. At 31 December 2026, which of its assets is classified as current?Single choiceL2
- An accountant classifies four assets of Cordier SA at 31 December 2026. Which of the accountant's conclusions is wrong?Single choiceL2
The criteria for classifying a liability as current and the right to defer3 questions
- A borrowing falls due in eight months and, at 31 December, the entity has no right to postpone its repayment beyond twelve months after the period: it is presented as a current liability.True / falseL1
- Mistral SA borrowed … from a bank. At 31 December 2026, two instalments are due within 12 months: … on 30 June 2027 and … on 31 December 2027. Case facts: at the closing date, Mistral has the right to defer settlement of all the later instalments for more than 12 months. Calculate the current portion, then the non-current portion of the borrowing.CalculationL2
- At 31 December 2026, Opale SA has four liabilities. Loan A (EUR 2,000,000) is due on 31 August 2027. Loan B (EUR 3,000,000) has a contractual maturity in 2030, but the lender may demand repayment at any time. Loan C (EUR 1,500,000) has a maturity in 2030, with no early repayment clause. A trade payable of EUR 800,000 will be settled in 14 months, Opale's normal operating cycle being 16 months (case facts). What is the total of the current liabilities among these four items?Single choiceL3
The 2020 amendment: rights at the end of the period, not expectations2 questions
- Under the January 2020 amendment to IAS 1, the classification of a liability as current or non-current depends on management's intention to settle it within 12 months.True / falseL1
- At 31 December 2026, Zephyr SA must repay a loan of EUR 3,000,000 in 2029 and, at the closing date, has the right to defer that settlement beyond 12 months (case facts). Its management nevertheless considers repaying early in June 2027, without being compelled to. How is the loan classified at 31 December 2026?Single choiceL2
The right to defer settlement: substance and existence at the end of the period3 questions
- A right to defer settlement of a loan obtained after the closing date allows that loan to be classified as a non-current liability at the closing date.True / falseL2
- At 31 December 2026, Boreas SA must repay a loan of EUR 4,000,000 in 2029. The contract requires Boreas to comply, at each 31 December, with a ratio of net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) of at most 3.0. At 31 December 2026, the ratio is 3.4 (case facts). The lender will test the ratio only on 30 June 2027, using the 2026 accounts. How is the loan classified at 31 December 2026?Single choiceL3
- Cedar SA must repay a loan of EUR 6,000,000 in 2029, subject to maintaining an interest cover ratio of at least 2.5 at each 31 December (contractual condition of the case). At 31 December 2026, the ratio is 2.7. Management nevertheless forecasts a ratio of 2.1 at 31 December 2027 and is negotiating an amendment of the contract with the bank, which tests the ratio each year using the annual accounts. Write a short note concluding on the classification of the loan at 31 December 2026, distinguishing rule, case facts and professional judgement.JudgmentL3
Covenants to be met at the end of the period or before, or after3 questions
- A loan is repayable in 2029, but its covenant will only be tested at a date after the closing date: by itself, that covenant does not prevent the loan from being classified as non-current at the closing date.True / falseL2
- Cobalt SA has so far classified as a non-current liability a loan of …, repayable in 2030. The contract includes a covenant to be complied with at 31 December 2026, the closing date; it is not complied with at that date (case facts). Cobalt therefore no longer has, at the closing date, the right to defer settlement of the loan. Record the presentation entry that reclassifies the loan.Journal entryL2
- At 31 December 2026, Ibis SA has two loans. Loan X (…) complies with its covenant at the closing date; its next instalment, of …, is due in 2027, and Ibis has the right to defer settlement of the balance beyond 12 months. Loan Y (…), maturing in 2031, is subject to a covenant to be complied with at 31 December 2026, which is not complied with, with no waiver obtained at that date (case facts). Calculate the total of the loans classified as current, then the total classified as non-current.CalculationL3
Disclosure on non-current liabilities subject to covenants2 questions
- A liability subject to covenants to be complied with within 12 months is classified as non-current. What is the objective of the information the entity then provides in the notes?Single choiceL2
- At 31 December 2026, Eolis SA has four loans. Which one requires the note disclosure on repayment risk provided for liabilities subject to covenants?Single choiceL3
The minimum line items and subtotals of the statement of profit or loss3 questions
- Which of the following items is among the minimum line items of the statement of profit or loss under IAS 1?Single choiceL1
- Which statements about the minimum line items of the statement of profit or loss are correct? More than one answer is possible.Multiple choiceL1
- Gamma SA, which already presents the minimum line items of the statement of profit or loss, wants to add a "Gross margin" line (revenue less cost of sales) because this subtotal helps users understand its performance (documented judgement, case fact). Does IAS 1 allow it?Single choiceL2
Other comprehensive income: reclassifiable or not3 questions
- Other comprehensive income is grouped into items that will not be reclassified to profit or loss and items that will be reclassified to profit or loss when specific conditions are met.True / falseL2
- Pivoine SA made a profit of …. Its other comprehensive income, net of tax (case convention), comprises a gain on translating foreign operations of … and a cash flow hedge loss of …, which will be reclassified to profit or loss when specific conditions are met, and a remeasurement loss on a defined benefit plan of …, which will not be reclassified (classification provided by the case). Calculate the subtotal of reclassifiable items, then total comprehensive income.CalculationL2
- Érable SA holds, in its reserve of reclassifiable other comprehensive income, a cumulative gain of … relating to an item for which the relevant standard now requires reclassification to profit or loss (case fact: IAS 1 does not decide this reclassification, the standard that creates the item does). Record the entry reclassifying the gain to profit or loss.Journal entryL2
The statement of changes in equity1 question
The structure and role of the notes1 question
Material accounting policy information3 questions
- A financial statements preparer at Rubis SA summarises the requirements of IAS 1 on accounting policy information. Which of the preparer's sentences is wrong?Single choiceL2
- Quartz SA prepares its notes. For which of the following accounting policy information can it reasonably be expected that it will influence the decisions of the primary users? More than one answer is possible. Case convention: the amounts and circumstances given are those of each line.Multiple choiceL2
- Saphir SA's notes reproduce word for word, for 14 accounting policies, the text of the corresponding standards, and say almost nothing about the accounting for its multi-year maintenance contracts, which account for 45% of its revenue and rest on a management judgement (case facts). Management considers the whole "complete and compliant". Write a short justification stating whether these notes meet the requirement for material accounting policy information.JudgmentL3
Judgements made in applying accounting policies1 question
Disclosures about capital management1 question
IAS 1 until IFRS 18: annual periods beginning from 20273 questions
- An entity may apply IFRS 18 before 1 January 2027, provided it discloses that fact in its notes.True / falseL1
- Optima SA closes its books on 31 December and does not early adopt IFRS 18. For the year beginning on 1 January 2027, how does it present its 2026 comparative period?Single choiceL2
- Which statements about the replacement of IAS 1 by IFRS 18 are correct? More than one answer is possible.Multiple choiceL1
IAS 1 requirements transferred to the renamed IAS 82 questions
- Which list corresponds to the requirements of IAS 1 that IFRS 18 transfers to IAS 8, amended and renamed "Basis of Preparation of Financial Statements"?Single choiceL2
- A colleague prepares a summary note on what happens to the general requirements of IAS 1 on the move to IFRS 18. Which of the colleague's sentences is wrong?Single choiceL3
The statements whose structure is retained under IFRS 182 questions
- Under IFRS 18, the structure of the statement of other comprehensive income, with its reclassifiable and non-reclassifiable items, is unchanged from IAS 1.True / falseL1
- An analyst compares the primary statements of an entity under IAS 1 and under IFRS 18 to prepare for the transition. Which of these statements changes the most?Single choiceL2