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

To show liability and equity and the manner in which those funds are employed

To account for changes in cash during the accounting period

To show details of the nature of a company’s operating activities

To reconcile the beginning and ending balances of stockholders’ equity

Short-term benefits

Post-employment benefits

Termination benefits

Long-term benefits

Full disclosure

Expense recognition

Going concern

Constraints

The employee value proposition

A long term benefit

A noncurrent expense

A liability

Comparability

Verifiability

Relevance

Timeliness

Re-measurement method

Fair value method

Net present value method

Projected unit credit method

A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity

A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants

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

0.5% of profit

2.5% of profit

3% of profit

5.5% of profit

When the employee renders service

When the company has no realistic alternative but to make the payments

When a change in the company’s informal practices would cause unacceptable damage to its relationship with employees

When the company recognizes the expected cost of profit-sharing and bonus payments