PAS-37 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

1. Are not Recognized because they do not meet all of the assets.

- CONTINGENT ASSETS

2. Give 2 types of Present Obligation.

- CONSTRUCTIVE OBLIGATION
- LEGAL OR CONTRACTUAL OBLIGATION

3. Is a liability of uncertain timing or amount.

- PROVISIONS

4. Potential outflow is payable in 1 year or more.

- TIME VALUE OF MONEY

5. Incurred by an entity depending on the outcome of an uncertain future event.

- CONTINGENT LIABILITIES

PAS 38: Intangible Assets

1-3. What are the 3 critical attributes of an intangible asset?

• must be identifiable
• controllable by entity
• have expected future benefits
4. Which of the following is NOT an intangible asset?
a) Good Relationship with customers
b) A Patent
5. Research activities do not meet the criteria for recognition under PAS 38.
a) true
b) false
6. The design, construction, and testing of chosen alternative materials, processes or systems is
an example of
a) research
b) development
PAS40 (INVESTMENT PROPERTY)

1.) Which of the following terms best describes property held to earn rentals or for capital
appreciation?

a. Freehold Property

b. Leasehold property

c. Owner-occupied property

d. Investment property

2.) Under PAS40 Investment property which one of the following additional disclosures must be
made when an entity chooses the cost model as its accounting policy for investment property?

a. The fair value of the property

b. The present value of the property

c. The value in use of the property

d. The net realisable value of the property

3.) PAS40 Investment property gives a choice between two different model as the accounting
policy to be used in relation to investment property. Which of the following disclosures should be
made when the fair value model has been adopted?

a. Depreciation methods used

b.The amount of impairment losses recognized

c.Useful lives or depreciation rates used

d. Net gains or loses from fair value

4.) How would you recognize the property as an investment property?

A property will be recognized as Investment Property if it meets the

following criteria:

*The definition of Investment Property.

*It is probable that future economic benefits ill flow to the entity.
 *The cost is reliably measurable. (Ket future economic benefits and cost
reliably measure lang isagot nyo pwede na:))

5.)What are examples of investment property? At Least 2 examples.

* land held for long-term capital appreciation.

* land held for a currently undetermined future use.

* building leased out under an operating lease.

* vacant building held to be leased out under an operating lease.

PAS 41 Agriculture

MULTIPLE CHOICE

1. Unprocessed harvest produce is under what type of asset?

a. Inventory
b. Agricultural Produce
c. Biological Asset
2. Which of the following is not a purpose of agricultural activity?
a. For land expansion
b. For conversion into agricultural produce
c. For sale

TRUE or FALSE; if false, defend your answer.

3. A biological asset shall be measured at fair value less costs to sell. - TRUE

4. Turon shall be accounted for under PAS 41. Therefore, it is a biological asset.

-FALSE. Turon shall be accounted for under PAS 20, and therefore is an
inventory.

5. Landscaping is an agricultural activity.

-FALSE. Landscaping is not an agricultural activity; it’s the enhancement of

the PPE. Therefore, the costs of the plants for beautification shall be accounted for under
PAS 16 PPE.

Situational
6. Romina owns mango trees within her property. Her neighbor, Danigurl, picks mango regularly
for her mango shake business. Danigurl accounts the mango as her cost to make mangoes as
part of her business’ profit or loss. What makes Danigurl’s act wrong?

- Danigurl’s act is not an agricultural activity (picking the mango from Romina’s
property), because harvesting from unmanaged sources is not agricultural
activity. Therefore, she has no right to account for those mangoes, as it is not her
biological asset.

It depends on the situation. It would be better if Danigurl asked for Romina’s

consent or if not, she may ask if she can purchase the harvested mangoes for her
business.