MCQ Quiz

Question 1 of 21

The primary objective of lease disclosures under both IFRS and US GAAP is to enable users to assess:

The tax implications of lease arrangements.
The amount, timing, and uncertainty of cash flows from leases.
The legal enforceability of lease contracts.

id: 1 model: Grok topic: Lease Disclosure Objective

Question 2 of 21

Lease-related items on a lessee's balance sheet typically appear as:

Right-of-use assets in non-current assets and lease liabilities split between current and non-current.
Only lease liabilities in current liabilities regardless of maturity.
Operating leases solely in footnotes with no balance sheet recognition.

id: 2 model: Grok topic: Lease Balance Sheet Presentation

Question 3 of 21

Under IFRS 16, lessee disclosures for the current period must include all except:

Carrying amount of ROU assets by class.
Total cash outflows for leases.
Expected future contributions to lessors.

id: 3 model: Grok topic: Lessee Quantitative Disclosures

Question 4 of 21

Lessee lease liability maturity analysis must be disclosed:

Combined with other financial liabilities like bonds.
Separately from maturity of bonds and loans.
Only for finance leases, not operating leases.

id: 4 model: Grok topic: Lease Maturity Analysis

Question 5 of 21

In Apple's 2021 lease note, right-of-use assets for operating leases are reported under:

Other non-current assets at $10,087 million.
Property, plant, and equipment for operating leases.
Current assets due to short-term lease terms.

id: 5 model: Grok topic: Apple Lease Disclosure Example

Question 6 of 21

Lessors with finance leases must disclose at minimum:

Selling profit/loss and finance income on net investment.
Only maturity analysis for first five years.
Depreciation on underlying assets.

id: 6 model: Grok topic: Lessor Finance Lease Disclosures

Question 7 of 21

For operating leases, lessors disclose:

Disaggregated PPE classes and maturity analysis.
Net investment in leases by category.
Sensitivity to discount rate changes.

id: 7 model: Grok topic: Lessor Operating Lease Disclosures

Question 8 of 21

Under IAS 19, disclosures for defined contribution plans require:

Amount recognized in income statement.
Full actuarial sensitivity analysis.
Plan asset composition by category.

id: 8 model: Grok topic: Defined Contribution Disclosures

Question 9 of 21

IAS 19 DB plan disclosure objectives include explaining all except:

Characteristics and risks of plans.
Amounts in financial statements from plans.
How plans affect future cash flow uncertainty.

id: 9 model: Grok topic: Defined Benefit Disclosure Objectives

Question 10 of 21

IAS 19 requires DB disclosures including:

Reconciliation of net asset/liability with service cost, interest, remeasurements.
Only total employer contributions annually.
Projected benefit obligation without assets.

id: 10 model: Grok topic: DB Plan Reconciliation Disclosure

Question 11 of 21

DB disclosures must include sensitivity analysis for:

Changes in significant assumptions like discount rate.
Future contribution rate changes.
Plan participant demographics.

id: 11 model: Grok topic: DB Sensitivity Analysis

Question 12 of 21

Disclosures for DB plan assets include breakdown by:

Equity, debt, real estate categories.
Geographic regions only.
Employer stock percentage.

id: 12 model: Grok topic: DB Plan Assets Composition

Question 13 of 21

Roche's 2021 DB net liability primarily arises from:

Unfunded plans DBO CHF 5,582M.
Funded plans overfunding CHF 1,208M.
Asset limit recognition CHF 3M.

id: 13 model: Grok topic: Roche DB Funding Status

Question 14 of 21

IFRS 2 requires share-based disclosures including:

Description of arrangements, vesting terms, settlement method.
Only total unrecognized compensation cost.
Fair value at exercise date.

id: 14 model: Grok topic: Share-Based Compensation Disclosures

Question 15 of 21

Apple's 2021 RSU disclosure shows balance decreasing from 310M to 240M despite grants because:

Vesting exceeded grants (146M vested vs 89M granted).
Fair value increased significantly.
ESPP shares diluted RSUs.

id: 15 model: Grok topic: Apple RSU Activity Disclosure

Question 16 of 21

Apple discloses lease discount rate as:

Incremental borrowing rate 2.0% since implicit not readily determinable.
Implicit rate in leases.
Weighted average cost of capital.

id: 16 model: Grok topic: Lease Discount Rate Disclosure

Question 17 of 21

Apple discloses $1.1B future payments for leases not yet commenced because:

They represent off-balance-sheet commitments affecting future cash flows.
They are signed executory contracts requiring recognition.
They adjust current ROU assets.

id: 17 model: Grok topic: Future Lease Commitments

Question 18 of 21

Roche's DC expense CHF 419M reflects:

Contributions to third-party funds; no BS impact.
Net of employee contributions.
Defined benefit approximation.

id: 18 model: Grok topic: Roche DC Plan Expense

Question 19 of 21

Roche discloses expected 2022 DB contributions CHF 411M to show:

Future cash outflow impact on liquidity.
Past settlement gains/losses.
Remeasurement volatility.

id: 19 model: Grok topic: DB Cash Flow Disclosures

Question 20 of 21

Apple RSUs under 2014 Plan vest over 4 years and settle in:

Common stock shares one-for-one with DERs.
Cash equivalent to market value.
Options exercisable post-vesting.

id: 20 model: Grok topic: Share Plan Vesting and Settlement

Question 21 of 21

Apple discloses $13.6B unrecognized RSU/stock option cost over 2.5 years weighted average because:

Remaining vesting period requires future expense recognition.
Forfeitures realized post-grant.
Tax withholdings deferred.

id: 21 model: Grok topic: Unrecognized Compensation Cost