Professional Documents
Culture Documents
ND
2 Annual Regional Convention 2008
QUIZ BEE – PA1 & TOA
CLINCHER
2. The Stone Company has an account receivable from The Knowles Company of
PHP55,000. Stone also has an account payable to Knowles of PHP15,000.
Local law allows the enforceable right of set-off of the recognized amounts. It
is not normal business practice to settle the amounts net. What amount for
accounts receivable and accounts payable should be presented in Stone's
statement of financial position, according to IAS32 Financial instruments:
presentation?
Accounts receivable Accounts payable
A PHP55,000 PHP15,000
B PHP40,000 0
C PHP55,000 0
D 0 PHP15,000
Question 22 - A
IAS32 para 42 allows the offset of financial assets and financial liabilities in
restricted circumstances where there is both a legally enforceable right of setoff
and an intention to settle on a net basis.
3. In accordance with IAS7 Statement of cash flows, and treating it as a
nonrecurring event, which classification of the cash flow arising from the
proceeds from an earthquake disaster settlement would be most appropriate?
(select one answer)
A Cash flows from operating activities
B Cash flows from investing activities
C Cash flows from financing activities
D Does not appear in the cash flow statement
Question 6 - A
The definition in IAS7 para 6 of operating activities includes "other activities
that are not investing or financing", so will include disaster settlements.