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Aec 11
Aec 11
Problem 2-9
Going concern 1. The operations of a saving bank are being evaluated by the
Bangko Sentral ng Pilipinas.
Accounting entity 2. The parent entity in Manila has a subsidiary in Japan. The
financial statements of the subsidiary are translated to pesos for
consolidation with the financial statements of the parent entity at
year-end.
Monetary unit 3. A machinery was imported from USA at a certain cost five years
ago. Because of inflation, the machinery has now a current
replacement cost which is very much higher than the historical cost.
Accounting entity 5. A subsidiary was exhibiting poor financial statements for the
current year.
Going concern 2. An entity reported inventory, property, plant and equipment and
intangible assets at current value at year-end.
Problem 2-11
Monetary unit 3. The pesos of today can buy as much goods and services as the
five pesos five years ago.