.

d.

n 11'
in Im n n i 1 r p. tt .

2. An ,

an n ti
fin n?al •
A eompl te s t of
.

tne ti
of .linanci 1 •ta ol nan 1' I
d t
·

b. A cond n noed t
i or cond
·

ompl t
c. Eith r ·

ol An n
·

al
nt d • t
·

staten1
·

t ROr c0ndtn•
·

d. Neither n complete
stat menta ·

prepared ••
ment• ar
a

basic finll.ncial stat

8. Which
intel'im financial
reportinr?
minimum for
income etatement
financial positionand
a. Statement of income statement all\(I
Statementof financial position,
b.
comprehensivein?me
s?11tem?ntof statement of
Cinanei•l position,
c. Statement of and .stat.,ni?Dtof
caeb fl.OW•
comprehensiveiJlcome of
. positiOll,statement
Of financial
d. Statement of ca1h flOW• and
comprehensive income, 1tatem4'nt. ·

in equity
statement of ch•ngea
encou.raf!td to provide
4. fub??clytrad?clentities are
·

1n
financial reports
ter1m .

half year and within 60 deiY•

a. At 1,ast at the end of .th? ,

of the end of the interim period.

b. Within a ?onth of the half year?end.
c. On a quart.erlybuia; .

d. Wheneye? the e?.ti? wiabea.

 5, An entity i ·

prqi rin, interim fin ncinl

·

six m nth· md .d Jun ijtr t Ill nt for ·

stateru
30; ?lO18. In tho in r· m fiucu1cfol
·nta for six
month Jt tern ,nt f fin11ncrnJ
position o?
·

?une 30/ ,

2018 an tat merit of

compreh-..naive incom,
for eix month nd d June 30, 2018
shall be presented.
In additio]l,all
be presented, of the followin hil]l
except ·

a. Statement of fino.ncinl
b. Sta tern position on June 30, 2017
en t of financial
Statement position on ec mber 31, 2017
c. of
ended June 30,
comprehensive income for ix months
2017
d. Statement of c
sh flows for six
30,2017 month ended June

ANSWER 11 10
..

1. C

2 .. c

3. d
'
.

4. a

5. a

245
I
 17-11 Multiple choice
(IFRS)
QtJE.C,TION
lnterim fin ncial r porta shall be published
l.

On ·
year. atany
time dutjni theleat.
month of the half year-en
·

.
. ·
..

h. W1thu1
quarterly basis.
.

c. On .

wishes.
d. When ver the entity
finllJlcial
reports
2 If an entity does not prepare interim
deemed· not to
financial statenielitB are.
a. The year-end ·
·

with
·
.

comply with IFRS. compliance

· · · ·

·
·

,
statements
.

b The vear-end financial .

·
·

·
·

be
·

IFRS is not affected. shall not

.. ·
.

financial statemerits
.

The year-end
·

.·
c.
acceptable under local
iurisdictiOn. .

the
shall be included
m
·

.
..

d. Interimfinancial reports-- ·

statements.
·

year-endfinancial .
.

includeas minimum
shall a:
3. Interim financi?l reports ·. ·
·

set- financial starements. ·

a. A.complete of financial statements and selected

of
b. A condensed set
·

notes.
statement of financial
position and an .

c. A condenAed. .

; .

statement.
.

fiMncial position,·income
. .

income
d.'
.

A condeiised
statement.cOf ·

of cash flows;
statement and statement
minimum
shall include as· a
4. An interim financial" report
all of the following comp9rtents, except
and
a.: Condensed statem!lnt :of ·fin·aii.cial position ·
·
·

of col'.Dprehensiveincome· ·

.
.

statement
flows
b. Condensed statement of cash
c. ?ta??e·nt of changes in equity
C?nden?e.d
Accounting and explanatory notes
policies
d.
reading interim
5. There. is· a presumption that anyone · ·

financial reports shall

·

.
·

nderstand all International Financial Re·porting·

a.
·8U
tandards. .
·
·

o. Have accesa to the

recordsof the entity. .

c. Have access' t<;> ?he most recent annual re?? ....v .. "

d. Not make decisione based on the· report. .

.
; 2481
6. An entity owns a numb r of farms that harvest
prod ice
seasonally. App.coxim tely 80% of the a lea are in the
period Augu t to October. Because the business is
seasonal, what does the standard su11e1t?
· Add1tionnl be written
notes in the interim reports
about seasonal nature of the business.
b. Disclosure of financial information for the latest and
comparative 12-month period in addition to the
_interim report. .
·

c. Additional disclosure in. the

d. No additional
accounting policy now.
disclosure.
7. Which statement is true regarding interim financial
statements?

a. Interim financial statements required. are

b. If interim. financial statements are presented, four
: ···
basic financial statements
are required.
c. If interim financiaf"statements are presented, only a
statement. of financial position and a statement of
comprehensive income are required.
d. Interim financial statements· with
must be presented ..

the most recent annual financial statements.

8. Which statement in relation to an interim financial report

is true?

a. An interim financialreport must consist of a complete

set of financial statements.
·

b. An. i.nt'erim financial report must consist· of a

condensed set of financial statements.
c. An in te rim financial report may consist of a
condensed set or complete set of financial statements.
d. All of these· statements are true.

ANSWER 17-11 ,

1. d 5. C

2. b 6. b

3. b. 7. b

4. d 8. C

247
 Multiple choice (AICPA Adapted>
QUESTION 1H2

l statements are usually p,eeent.ed

on a

1. Interim finonci

a. Mon .hly basis

b. Quarterly basis
c. Semiannual basis
d. Nine-month basis
from ? market
reporting, i,nventol'Y loss
2. For interim .an
shall be recogruzedas a

decline in the second quarter

loss
.

quarter
·

third and fourth

.

In the fourth
.

a.
each bf the second.
·
b. Proportionatelyin .

eecond, thir?,and
·

.quartera .

c.
in each Of the first,
Proportionately .-
·

fourth quarters
the; second. quarter
.

d. -
In .. ,.

·it-is appropriate, to, use

p·urp<>ses,
3 For external reporting the· cost-of goods
..

profit rate to de?r?e

estimated gross
sold for

a. Interim reporting
b, Y ear-end r?port¢g
reporting and year-end reporting.
·

c. Interim
Neither interim reporting nor year-end
repQr_ting
.

d.

&nancial reporting, .ex;propriation 8l1 gain

4. in_teri?
Fo_r the second quarter shaU be· ?
·
·

occurring 1n

ra?bly over the last three. quart,ers

a. Recog?zed all four quarters with the first
.

b. ratably over
Recognised
being restated
.

quarter .

in the second quarter

..

c .. ?co?d
d, Disclosed in the second quarter
.
,

248
 5. Adv· rti in coste in .urr \ ·

hall be deterred to provide

PJ ropri t exp ns in sch p riod fo

. Interin
reporting
b. Y ar?end·
reporting
c. Interim reporting and
y r end reporting ..

d. Neither interim
reportingnor year-end reporting
6. An inventory loss from
occurred a market price decline
in the first
However, in the third
quarter. the
inventory had a market price recoverythat quarter
exceeded the
market decline that occurred in the first quarter. For
interim financial reporting: the amount of inventory
should ··

·.
.

a, Decrease in the first quarter

by the amount of the
market price decline and
increase 'in the third quarter
by the of the market
amount
price recovery.
b. Decrease in. the first quarter
by the amount of the
market price decline 'and increass
in the third quarter
by the amount of decrease in. the first
quarter.
c. Not be affected in the first
quarter and increase in the
third quarter by the amount of the
market price recovery
that exceeded the amount of the market price decline
.

d. · Not be affected 'in either the· first

·
quarter or the third
.
·.
quarter.

·,. -Due to a. decline in .merket price in the second quarter,

an entity incurred an inventory loss. The market price is
expected to return to ·previous level by end of the the
year. At the end of the year, the decline had not reversed.
When should the loss be reportedin theinterim income
statement?

a. Ratablv ·over the second, third and fourth quarters

b. Ratably over the third· and fourth quarters
c. In· thesecond quarter
d. In the fourth quarter

--
 qit,1rter interim
,
Ho v
-'
inco ll ) tax expense fol' the third
per: d computed?
d by the third
quarter pretax
• ,
l'lu ni u .l r t 1nultiph
irnings. based
t d tax for the
first three quarters
Tho first
r,sti:!Ilate for the
·
o tirn
nnu I t less
·
similar
n n

-the· -third quarter

wo qu rter .

'I'h rute applicable during

c.
the third quarter pretax
multi lied by four times
rnings. total estimated
.

e
between
d. On i-half of the ·difference tax for the
tax expense
and the income
nnual income
first tw ·quarters.
be
financial statements can
9. Con .pt I lly, interim
d scribed as ,31nphasizing

a. Timelin ss over ·i:eliability

b. Rel' ability over releva.nce
c. Relevance over comparability
d. Comp rability over neutrality

be· viewed
10. Interim financial reporting should
that need not follow
a. As special type of reporting
a

financial reporting standards.

throughout
b. only if activity is evenly spread
As useful
unnecessary.
the year 80 that estimates are
of an anhual'period.
c. As reporting for an integral par.t
d, As reporting {or a separate
accounting period.

ANSWER 17-12

1. b 6. b
2,· d 7. C

3. a 8. b
4. C 9. a

6. d IO. C
--

250
QUE 'l'lON 17 18
..
Multi}ll ohol (IA/\)
I

1. WhL h s'tnternent int

rt out run . p rting i i ue?
tl. A\1entitio th t i u annual should issue
1nt? ·;m finan
n report
b. Tho ial roport.
1n.tegr 1 vi w the appropriate .

1a approach .
.
.

in
Pl" P ring interim
A complete
financial report.
c.
set of financial statements must he
presented for an int .dm period.
d. The same
accounting principles used £or the annual
should, be employed for
report
interim report.
2. Which statement is incorrect
reporting? regarding·interim financial ·

a. A
complete set of financial statements
at the interim
reporting date is required;
b. Interi.m .

amount like advertising that could. benefit

later interim periods is expensed immediately,
c. The integral and independent view are the two
approaches. interim financial reporting.
of
d. No accruals. or deferrals
in anticipation of future
events during the year should be reported. ·

3. Entities should disclose all of the

financial
following in interim
report, except ·

a. Basic and· diluted earnings

per share
b. ·
Change in accounting policy ·

c. Events after the end of reporting period

d. Seasonal revenue, cost or expenses
4. For interim financial rep?rting, the income tax expense
for the second quarter should be computed by using the
rate fortheyear,",
, b: Statutory
Effective
tax
tax rate expected to be applicable for the
.
.

. .
·

second quarter. .

·. .

c. Effective tax rate expected to-be ·applicable for t hee

.
'·

full year as estimated at the end of the first quarter.

d. Effective tax rate
bfethaeppsle1ccoa!aeq
exdpeetthed
tod
.

full year as estimate at .e en ° ·

'
·

ANSWER 17-13

1. d
2. a
3. C
4. a

251