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Quiz Bee - Pa1 & Toa - Average
Quiz Bee - Pa1 & Toa - Average
Statement (1)
False
False
True
True
Statement (2)
False
True
False
True
Question 2 - C
IAS20 para 20 requires grants for expenditure already incurred to be
recognized immediately. Para 12 requires grants such as that for the software
to be matched against the related costs, so that grant would be recognized
over the five-year period.
c
d
PHP81,750
PHP75,000
PHP6,750
PHP13,500
Question 5 - A
Carrying amount PHP75,000, Deferred income PHP6,750 is the correct answer.
See IAS20 para 26, where the grant is recognized as income on a systematic
and rational basis over the life of the asset. The deferred income in the
statement of financial position is reduced each year by the amount credited to
profit or loss.
The asset is depreciated over its useful life per IAS16.
6. The Coral Company accounts for non-current assets using the cost model. On
20 July 20X7 Coral classified a non-current asset as held for sale in
accordance with IFRS5 Non-current assets held for sale and discontinued
operations. At that date the asset's carrying amount was PHP14,500, its fair
value was estimated at PHP21,500 and the costs to sell at PHP1,450. The
asset was sold on 18 October 20X7 for PHP21,200. In accordance with IFRS5,
at what amount should the asset be stated in Coral's statement of financial
position at 30 September 20X7?
A PHP20,050
B PHP21,500
C PHP21,200
D PHP14,500
Question 8 - D
IFRS5 para 15 requires that a non-current asset held for sale should be
stated at the lower of (i) the carrying amount and (ii) the fair value less costs
to sell.
8. The Dipper Company operates chemical plants. Its published policies include
a commitment to making good any damage caused to the environment by its
operations. It has always honored this commitment. Which ONE of the
following scenarios relating to Dipper would give rise to an environmental
provision as defined by IAS37 Provisions, contingent liabilities and contingent
assets?