QUESTIONS!

1. It is the price that would be received to sell and asset in an orderly transaction between market participants at the
measurement date.
2. PAS 29 on financial reporting in __________________does not establish an absolute rate at which hyperinflation is
deemed to arise.
3. It is a transfer of resources or obligations between related parties regardless of whether a price is charged
4. When an associate has outstanding______________ preference shares, the investor shall compute its share of earnings or
losses after deducting the preference dividends, whether or not such dividends are declared.
5. The traditional concept of preparing financial statements based on historical cost is known as ___________.
6. It is an example of related parties meaning the parent, the subsidiary and fellow subsidiaries.
7. The equity method is based on________________ the between the investor and the investee.
8. The essential feature of a ____________ is a right to receive or an obligation to deliver a fixed or determinable amount of
money.
9. Parties are considered to be related if one party has the ability to control the other party, to exercise significant influence
over the other party and joint control over the reporting period.
10. Simply defined as an entity over which the Investor has Significant Influence.
11. An increase in the general price index means that the purchasing power of money has decreased
12. The contractually agreed sharing of control over an economic activity
13. It is the power to participate in the financial and operating policy decisions of the associate but not control or joint control
over those policies.
14. These items are not restated anymore because they are automatically stated in terms of current purchasing power of the
peso?
15. Power to govern the financial and operating policies of an entity Significance influence 5.)it is the power to participate in
the financial and operating policy decision of an entity but not control of those policies
16. It is the present value of the estimated future cash flows expected to arise from the continuing use of an asset and from
the ultimate disposal.
17. It means the goods and services that money can buy.
18. It is an example of related parties meaning the entities over w/c one party exercises significant influence
19. It is the power to participate in the financial and operating policy decisions of the associate but not control or joint control
over those policies.
20. 10. In a period of deflation or failing prices, a purchasing power gain is realized on monetary___________, and a
purchasing power loss is incurred on monetary___________.
21. Those persons having authority and responsibility for planning, directing and controlling the activities of the entity ,directly
or indirectly including any executive director or nonexecutive director.
22. The investment in associate is measure using the____________ of accounting.
23. Only____________ items are restated when preparing constant peso financial statements.
24. In Equity Method, the investment is initially recognized at________.
25. Index number used for restatement is known as_______________ constructed by government like Bangko Sentral ng
Pilipinas.
26. It is measured as the higher between fair value less cost of disposal and value in use.
27. When an associate has outstanding______________ shares, the investor shall compute its share of earnings after
deducting the preference dividends only when declared.
28. Are those family members who may be expected to influence or be influenced by that individual in their dealings with the
entity
29. It is the restatement of conventional or historical financial statements in terms of the current purchasing power of the
peso through the use of index number.
30. It requires________ of related party relationships where control exists irrespective of whether there have been
transactions between the related parties.
ANSWER KEY!
1. FAIR VALUE
2. HYPERINFLATIONARY ECONOMY
3. RELATED PARTY TRANSACTION
4. CUMULATIVE
5. NOMINAL PESO ACCOUNTING
6. AFFILIATES
7. ECONOMIC RELATIONSHIP
8. MONETARY ITEMS
9. RELATED PARTY
10. ASSOCIATES
11. INFLATION
12. JOINT CONTROL
13. SIGNIFICANT INFLUENCE
14. MONETARY
15. CONTROL
16. VALUE IN USE
17. PURCHASING POWER
18. ASSOCIATES
19. SIGNIFICANT INFLUENCE
20. ASSET, LIABILITIES
21. KEY MANAGEMENT PERSONNEL
22. EQUITY METHOD
23. NON-MONETARY
24. COST
25. GENERAL PRICE INDEX
26. RECOVERABLE AMOUNT
27. NONCUMULATIVE
28. CLOSE FAMILY MEMBERS OF AN INDIVIDUAL
29. CONSTANT PESO ACCOUNTING