917.

Which of the following is not a valid condition that will exempt an entity from preparing
consolidated financial statemets.
a. The ultimate parent entity produces consolidated financial statements available for public use that
comply with PFRS.
b. The parent entitys debt or equity capital is not traded on the stock exchange.
c. the parent entity is in the process of filing its financial statement with a securities commission.
d. the parent entity is a wholly owned subsidiary if another entity.
918. The cost of an item of property, plant, and equipment that is acquired through the issuance of
capital stock or bonds payable is measured at
a. The fair value of the property received
b. The fair value of the capital stock or bonds payable issued
c.Par value of capital stock or face value of bonds payable issued
d. Cost of the asset to its owner
919. Which of the following statements is correct?
a. An asset that is sold for less than book value at the end of a project's life will generate a loss for the
firm and will cause an actual cash outflow attributable to the project
b. Only incremental cash flows are relevant in project analysis and the proper incremental cash flows
are the reported accounting profits because they form the true basis for investor and managerial
decisions.
C. It is unrealistic to expect that increases in net operating working capital required at the start of an
expansion project are simply recovered at the project's completion. Thus, these cash flows are included
only at the start of a project
d. Equipment sold for more than its book value at the end of a project's life will increase income and,
despite increasing taxes, will generate a greater cash flow than if the same asset is sold at book value.
920. What factor must be present to use the units of production method of depreciation?
a. Obsolescence is expected
b. Total units to be produced can be estimated
C Production is constant over the life of the asset
d. Repair costs increase with use
921. Spontaneously generated funds are best defined as:
a. The amount of assets required per peso of sales.
B A forecasting approach in which the forecasted percentage of sales for each item is held constant
C. Funds that a firm must raise externally through borrowing or by selling new common or preferred
stock.
d. Funds that are obtained automatically from routine business transactions.
922. It is defined as property held for use in the production or supply of goods or services or for
administrative purposes; or sale in the ordinary course of business.

a. Business property
b. b. Investment property.
C. Owner-occupied property
d. Rental property
923 Which of the following statements is most correct?
a. One of the key steps in the development of pro forma financial statements is to identify those
assets and liabilities that increase spontaneously with net income.
b. The first, and most critical, step in constructing a set of pro forma financial statements is
establishing the sales forecast
c. . cPro forma financial statements as discussed in the text are used primarily to assess a firm's
historical performance.
d. d. The capital intensity ratio reflects how rapidly a firm turns over its assets and is the reciprocal
of the fixed assets turnover ratio.
924. How should an entity recognize the change in the fair value of the liability in respect of a cash-
settled share-based payment transaction?
a. Should not recognize in the financial statements but disclose in the notes
b. Should recognize in the statement of changes in equity
C. Should recognize in other comprehensive income
d. Should recognize in profit or loss
925. Which of the following methods is used in PFRS to account for defined benefit pension plans?
a. accumulated benefits method
b. benefit-years-of-service method
c. projected-unit-credit method
d. vested years of service method
926. The overall principles of statement presentation include all of the following, except
A. Financial statements should be prepared on a going concern basis unless management either intends
to liquidate the enterprise or to cease trading has no realistic alternative but to do so
b. Each material item should be presented separately in the financial statement and immaterial amounts
should be aggregated with amounts of a similar or function
C. An enterprise should prepare its financial statements, including for cash flow information, under the
accrual basis accounting
D. Inappropriate accounting policies are not rectified either by disclosure of the accounting policies used
or by notes or explanatory material
926. Which of the following components of other comprehensive income should not be recycled to
profit or loss?
i. Changes in revaluation surplus.
Ii Changes in the fair value of "AFS" financial assets.
Iii Actuarial gains and losses on defined benefit plans.
Iv Gains and losses arising from translating the financial statements of foreign operations.
a. I and II only. b. I and iii only. C I,ll and Ill only. d. ii, il, lll and IV only.
927. An entity purchase a building and the seller accepts payments partly in equity shares and partly in
debentures of the entity. This transaction should be treated in the cash flow statement as follows:
a. This does not belong in a cash flow statement and should be disclosed only in the notes to the
financial statements.
b. The purchase of the building should be investing cash outflow and the issuance of shares and the
debentures financing cash outflows.
c. ignore the transaction totally since it is a non-cash transaction. No mention is required in either
the cash flow statement or in the notes to the financial statements
d. The purchase of the building should be investing cash outflow and the issuance of debentures
financing cash outflows while the issuance of shares investing cash outflow.
928. Provisions shall be recognized for all of the following except:
a, rectification costs relating to defective products already sold.
b. cleaning up costs of contaminated land when an oil entity has a published policy that it will undertake
to clean up all contamination that it causes.
C. future refurbishment costs due to introduction of a new computer system.
D. restructuring costs after a binding sale agreement has been signed
929. In 2014, after an entity's 2013 financial statements were approved for issue, the entity discovered
an error in the calculation of depreciation expense. The error occurred during 2012. The entity presents
comparative figures among several years. The effect of the correction in the entitys financial statements
will be recognized.
a. in the entitys profit or loss for the year ended December 31, 2013
b. in the entitys profit or loss for the year ended December 31, 2014.
c. Outside of total comprehensive income, in the statement of changes in equity as an adjustment to
retained earnings at January 1, 2013.
d. Outside of total comprehensive income, in the statement of changes in equity as an adjustment to
retained earnings at January 1, 2014.
930. Which statement is iincorrect concerning the treatment of residual value of the leased asset in the
sales type lease?
a. The unearned finance income will be identical whether the residual value is guaranteed or
unguaranteed.
b. The gross profit will be the same whether the residual value is guaranteed or unguaranteed.
c. The sales price includes the present value of the unguaranteed residual value.
D. The present value of the unguaranteed residual value is deducted to determine the cost of sales.
931. To be highly effective, the actual results of the hedge must be within a range of
a. 80% - 100%
b. 80% - 125%
C 100% - 125%
d. 100% - 150%
932. How is the compensation expense measured for equity settled share-based payments?
a. Use the normal hourly rate of the employees.
b. Measure the fair value of share options using an option pricing model.
c. Measure the difference between the market price and the fair value of the share options.
d. Measure the intrinsic value of share options as the difference between market price and exercise
price at measurement date.
933. Under IFRIC 17, an entity shall measure a noncurrent asset classified as held for distribution to
owners at
a. carrying amount
b. fair value less cost to distribute
c. lower between choices (A) and (B)
d. higher between choices (A) and (B)
934. in arriving at the gross profit during the first year using the percentage completion method of
accounting for a long term construction contract, the estimated total gross profit from the contract is
multiplied by
a. The percentage of the cost incurred during the year to the total contract price
b. The percentage of the cost incurred during the year to the total estimated cost
c.The percentage of the cost incurred during the year to the total cost incurred to date.
d. The percentage of the cost incurred during the year to the unbilled portion of the total contract price.
935. The milestone method of revenue recognition provides that if substantive milestone is achieved,
what amount of revenue is recognized?
a. Revenue is recognized up to the amount of cash collected
b. A prorate revenue based upon the percentage delivered to date
c. Contingent revenue is recognized in its entirety.
d. A percentage of total revenue based on the separate units delivered.
936. On the disposal of a foreign operation, the cumulative amount of the exchange differences
deferred in the separate component of equity relating to that foreign operation shall be recognized
a. as additional paid in capital.
b. as an adjustment to the beginning balance of retained earnings.
C. in profit or loss when the gain or loss on disposal is recognized.
d. separately as income or loss from discontinuing operations.
937. Units of currency held and assets and liabilities to be received or paid in a fixed or determinable
number of units of currency are
a. Financial assets and liabilities
b. Monetary items
c. Nonmonetary items
d. Functional currency
938. A parent need not present consolidated financial statements in certain instances. Which of the
following is not one of those instances?
a. The parent is itself a wholly-owned subsidiary, or is a partially-owned subsidiary of another entity and
its owners, including those not otherwise entitled to vote, have been informed about, and do not object
to the parent not presenting consolidated financial statements.
b. the presents debt or equity instruments are traded in a public market.
c The parent did not file, nor is it in the process of filing, its financial statements securities commission or
other regulatory organization for the purpose any class of instruments in a public market
D. the ultimate or any intermediate parent produces consolidated financial statements available for
public use that comply with Philippine Financial Reporting Standard
939. The existence of significant influence is not evidenced by
a. Participation in the on in the policy making process, including participation in decisions about
dividends or other distributions.
B. Presetation in the board of directors or equivalent governing body of the investee.
C. Power to cast the majority of votes at meetings of the board of directors or equivalent governing
body.
d. Provision of essential technical information.
940. Which of the following events after the balance sheet would generally result in to 940. Which one
an adjustment rather than disclosure?
a. Announcing a plan to discontinue an operation, disposing of assets or setting liabilities attributable to
a discontinued operation or entering into binding agreements to sell such assets or settle such liabilities.
b. The destruction of a major production plant by fire after the balance sheet date.
C. Abnormally large changes after the balance sheet date in asset prices or foreign exchange rates.
d. Determination after the balance sheet date of the cost of assets purchased, or the proceeds from
assets sold, before the balance sheet date.
941. Which of the following is one of the conditions that must exist for an entity to recognize revenue on
separate units under a multiple deliverable arrangement?
a. The delivered item has value on a standard alone basis and can be sold separately.
b. The delivered item is not returnable.
C. Collection has occurred for all of the separate units.
d.The separate units must be delivered within 90 days of the end of the accounting period.
942. Which of the following would be considered a Level 2 for fair value measurement?
a. Quoted market price on a stock exchange for an identical asset
b. historical performance and return on the investment.
c. Quoted market price available from a business broker for a similar asset.
d. all of these would be considered level 2 input for fair value measurement
943. When an investment in joint venture is held by a venture capital onani mutual trust fund, unit trust
and Insurance.linked fund
a. The entity must apply the equity method of accounting
b. The entity must apply the fair value method of accounting.
c.The entity may elect to measure the investment in joint venture at the fair through profit or loss.
d. The entity may elect to measure the investment in joint venture at fair value through other
comprehensive income.
944. If the payment of employees' compensation for future absences is probable the amount can be
reasonably estimated and the obligation relates to rights that accumulate, the compensation should be
a. accrued it attributable to employees' services not rendered.
b. accrued if attributable to employees' services already rendered.
c. accrued if attributable to employees' services whether rendered or not.
d. recognized only when paid.
945. Which of the following is not considered a research and development activity?
a. Laboratory research aimed at discovery of new knowledge.
b. Design, construction and operation of pilot plant.
C. Engineering follow-through in an early phase of commercial production.
d. Conceptual formulation and design of possible product or process.
946. When a debt security is transferred from IBODI (held to maturity) to available for sale, any
unrealized gain or loss at the date of transfer shall be
a. included in retained earnings.
b. reported as a component of stockholders' equity.
c. included in earnings.
d. reported as a component of stockholders' equity and subsequently amortized through interest
income over the remaining life of the debt security using the effective interest method of amortization.
947. How would you describe a fixed cost?
a. It may change in total where such change is unrelated to changes in production
b. It may change in total where such change is related to changes in production.
c. It is constant per unit change in production.
d. It may change in total where such change depends on production within the relevant range.
948 The valuation of inventories on a prime cost basis.
a. would achieve the same result as direct costing
b. would exclude all overhead from reported inventory cost
c. is always achieved when standard costing is adopted
d. is always achieved when the fifo flow assumption is adopted.
949 Deferred tax assets appearing in the balance sheet shall be reduced by a valuation allowance if its is
a. Probable that some portion will be realized.
b. Reasonably possible that some portion will not be realized.
C More likely than not that some portion will not be realized.
d. Likely that some portion will not be realized.
950. Which of the following is not a category of financial assets defined in PAS 39?
a. Available-for-sale financial assets
b. Financial assets at fair value through profit or loss
C. Loans and receivables
d. Held-for-sale investments
951. All of the following statements regarding derivatives are correct, except
a. The derivatives should be recognized as assets and liabilities.
b. The derivatives should be reported at fair values.
C. Gains and losses resulting from speculation should be deferred.
d. Gains and losses resulting from fair value hedge are reported immediately.
952. Under PFRS 9, "Financial instruments", what is the principle for recognition of a financial asset?
a. A financial asset is recognized when it is probable the future economic benefits will flow to the entity
and the cost of the instruments can be measured reliability
b. A financial asset is recognized when the entity obtains control of the instrument.
C. A financial asset is recognized when the entity obtain the risk and rewards of ownerships of the
financial asset and has the ability to dispose the financial asset.
d. A financial asset is recognized when the entity becomes a party to contractual provisions of the
instrument.
953. Depreciation of an asset begins when it is available use for location and condition necessary for it to
be capable of operating in intended by management. Depreciation of an asset ceases when
a. the asset becomes idle.
b. the asset is retired from active use and held for disposal.
c. the asset is derecognized.
d. the asset incurs major repairs and maintenance during the year.
954. The depreciable amount of an asset is the
a. the amount of cash and cash equivalent paid or the fair value of the other consideration given to
acquire an asset at the time of its acquisition construction.
b. is the cost of an asset, or other amount substituted for cost, less its residual value.
c is the amount at which an asset is recognized after deducting any accumulated depreciation and
accumulated impairment losses.
d. amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's
length transaction.
955. Which statement is incorrect concerning the situations that would lead to a lease being classified as
a finance lease?
a. The lease transfers ownership of the asset to the lessee by the end of the lease term.
b. The lessee has the option to purchase the asset at a price that is sufficiently lower than the fair value
at the date of the inception of the lease.
C.The lease term is for the major part of the economic life of the asset even if the title is not transferred.
d. At the inception of the lease, the present value of the minimum lease payments amounts to at least
substantially all of the fair value of the leased asset.
956. Which of the following is a characteristic of a change in accounting estimate?
a. It usually need not be disclosed.
b. It does not affect the financial statements of prior periods.
c. It should be reported through the restatement of financial statements.
d. It will affect all periods following the period of change.
957. Under PRFS 6, "Exploration and evaluation of mineral resources", an entity is required to consider
which of the following in developing accounting policy for the recognition of exploration and evaluation
asset?
a. The requirements and guidance in PFRS dealing with similar and related issues.
b. the definitions, recognition criteria, and measurement concepts for assets, liablities, income and
expenses in the Conceptual Framework.
C. Recent pronouncement of standards-setting bodies.
d. Whether the accounting policy results in information that is relevant and reliable.
958 which of the following has been outflowed in relation to insurance contracts?
a. Shadow accounting
b. Catastrophe provisions
c. A test for the adequacy of recognized insurance liabilities.
d. An impairment test for reinsurance assets.
959. The following statements relate to cash. Which statement is false?
A. Cash equivalents are short-term highly liquid investments that are readily to cash and so near their
maturity that they represent insignificant risk of changes in value because of changes in interest rates.
B. Redeemable preferred share may qualify as a cash equivalent if purchased three months before the
specified redemption date.
C. Legally restricted compensating balances are excluded from cash but are presented as current assets
if the related loan is less than one year
D. A six-month BSP treasury bill with remaining maturity of three months on balance sheet date may be
classified as cash equivalent provided this is disclosed.
60 Which of the following would not contribute to negative goodwill?
a. Errors in measuring the fair value of the acquiree's net identifiable assets
b. b. A bargain purchase.
c. A requirement to measure net assets acquired at a value other than fair value.
d. d. Making acquisitions at the top of a "bull" market for shares.
961. The deferred tax consequence attributable to a deduction temporary difference and operating loss
carry-forward is known as a deferred
a. Tax expense
b. Tax asset
C. Tax benefitd
D. Tax liability
962 sh discounts permitted on purchased raw materials should be
A. added to other income, whether taken or not
B. added to other income, only if taken
C. deducted from inventory, whether taken or not
D. deducted from inventory, only if taken
963. It is a contractual agreement whereby two or more parties undertake an economic activity which is
subject to joint control,
a. Jointly controlled operation
b. Joint venture
c. Partnership
d. Joint undertaking
964. Which of the following falls within the definition of "related parties" as defined by PAS 24?
a. government department and agencies
. b. a supplier with whom eth reporting entity has a one-year contract for the supply of raw materials.
c. providers of finance in the course of their normal dealings with an enterprise by virtue only of those
dealings.
d. the wife of a key management personnel who has the authority to plan, direct and control the
activities of the reporting enterprise.
965. Under PAS 24, all of the following are not necessarily considered related parties of the reporting
entity, except
a. post-employment benefit plans.
b. providers of finance.
C. public utilities.
d. trade unions.
966. Which of the following situations will require disclosures as a related party?
a. In consolidated financial statements in respect to intra-group transactions.
b. In parent separate financial statements when they are made available to published with the
consolidated financial statements.
C. In the financial statements of state-controlled enterprise of transactions with other state-controlled
enterprises.
d. In related party relationships where control exists, irrespective of whether there have been
transactions between related parties.
967. Part of the notes to financial statements are events after the reporting period which pertain to
those events both favorable and unfavorable that occur.
a. After balance sheet date.
b. After issuance of the statements
. C. After the balance sheet date prior to issuance of financial statements.
d. Between the balance sheet date and the date when the financial statements are authorized for issue.
968. Adjustment of financial statements are required for those events after balance sheet date which
a. Are unusual and material.
B. Occurred prior to issuance of the financial statements,
C. Have a material effect or a user's evaluation of the information presentation in the financial
statements
D. Provide additional information for determining amounts relating to conditions existing in the balance
sheet date.
969. Type 1 event that provide evidence of conditons existing at the balance sheet data are given the
following treatment.
a. adjusting in the cash flow statements
b. recognition in the financial statements
c. disclosures in the notes to the financial statements.
D. ratification by shareholders at an annual meeting.
970. Which is usually considered as a type 1 events (i.e., adjustin event) under PAS 10?
a. a decline fair value of investment
b. Abnormally large change in asset prices or foreign exchange rate.
c. Receipts of information indicating that an asset was impaired at the end of reporting period.
d. Enactment of tax laws that significantly affect current and deferred tax assets and liability.

971. Under PAS 10, which of the following is classified as an adjusting event rather than non-adjusting
event?
A. The entity announced the discontinuance of its assembly operation
b. The entity entered into an agreement to purchase the freehold of its currently
leased office building.
c. Destruction of major production plant by fire.
d. A mistake was discovered in the calculation of the allowance for uncollectible trade receivables
resulting to an understatement of the trade receivables.
972. Type ll events that are indicative of conditions that arose after the balance sheet date are given the
following treatment
a. Recognition in the balance sheet.
b. Recognition in the income statement.
c Recognition in the cash flow statement.
d. Note disclosure in the financial statements.
973. Which measures requires the use oof future salaries in the computation of pension obligation?
a Accumulated benefit obligation
b. Defined benefit obligation
c. Restructured benefit obligation
d. Vested benefit obligation
974. The interest on the defined benefit obligation component of pension expense
A. s the same as the expected return on plan assets
b. May be stated implicitly or explicitly when reported.
c Reflects the incremental borrowing rate of the employer
d. Reflects the rate at which pension benefits could be effectively settled
975. Which of the following is taken into account when determining the discount rate?
a. Investment or actuarial risk
b. Specific risk associated with the entity's business
c. Risk that future experiences may differ from actuarial assumptions
d. Market yields at the end of reporting period on high quality corporate bonds.
976. The computation of pension expense includes all the following except
a. Past service cost
b. Interest income on plan assets
C Interest on projected benefit obligation
d. Current service cost component measured using current salary levels
977. Under PAS33 the weighted average number of shares outstanding for all periods shall be adjusted
for
a. Any prior period error
b. Any issue of shares for cash
c. Any convertible instruments settled in cash
d. Any change in the number of ordinary shares without change in resources
978. In computing weighted average shares outstanding when a stock dividend or share split occurs the
additional shares are
a. Weighted by the number of days outstanding
b. Weighted by the number of months outstanding
c. Considered outstanding at the beginning of the year
d. Considered outstanding at the beginning of the earliest year reported
979. An ordinary nonvoting share which is entitled to a fixed dividend should
a. Not be included in EPS calculation
b. Be included in the calculation of diluted EPS
c. Be included in EPS calculation after adjustment of the fixed dividend
d. Be included in EPS calculation without adjustment of the fixed dividend
980. When computing diluted EPS convertible bonds are
a. Ignored
b. Assumed converted if anti-diluted
C. Assumed converted if dilutive
d. Assumed converted whether dilutive or ant dilutive
981. When there are two dilutive convertible securities the one that should be used first to recalculate
earnings per share is the security with the
a Greater earnings adjustment
b. Smaller eamings adjustment
C Greater earnings per share adjustment
D. Smaller earnings per share adjustment.
982. Under PAS33 contingent ordinary shares are treated as outstanding and included in the
computation if the condition is satisfied for
a. Both basis and diluted EPS from date of agreement
b. Both basis and diluted EPS from the beginning of the year,
c. Both basic and diluted EPS from the date of the condition is satisfied
d. Basic EPS from the date the condition is satisfied and for diluted EPS from beginning of year date of
agreement if later.
983. Which of the following impairment losses should never be reversed?
a. Loss on goodwill
b. Loss on business segment
C. Loss on inventory
d. Loss on property plant and equipment
984. All of the following are true with regard to impairment testing of long-lived assets; except
a. If impairment indicators are present the entity must conduct an impairment test.
b. If the recoverable amount is lower than the carrying amount an impairment loss is reported
c. The impairment test compares the carrying amount with the lower of fair value less cost of disposal
and value in use,
d. If either the fair value less cost of disposal or the value in use is higher than the carrying amount, no
impairment loss is recorded
985. Under PAS36 which of the following statements is incorrect with impairment?
A. If impairment Indicators are present, the entity must conduct an impairment test.
B. If the recoverable amount is lower than carrying amount, an impairment is recognized
C. If recoverable amount is higher than carrying amount, no impairment loss is recognized
d. The impairment test compares the carrying amount with the lower of fair value less cost of disposal
and value in use.
986. Which of the following statements in relation to recovery of impairment for an intangible asset is
not true?
a. No recovery of impairment is allow for goodwill.
b. The recovery of impairment is reported as other income.
C. The amount of recovery is limited to the carrying amount of the asset that would have been reported
had no impairment occurred.
d. After a recovery of impairment has been recognized, the carrying amount of the asset reported
would be higher between fair value less cost of disposal and value in use.
987. An entity has determined that the fair value of a cash generating unit exceeds carrying amount.
which of the following statements is correct concerning this test of impairment?
a. Goodwill should be written down as impaired.
b. Goodwill should be retested at the entity level.
c. Impairment is not indicated and no additional analysis is necessary.
d. The assets and liabilities should be valued to determine if there has been an impairment of goodwill.
988. Which of the following is not a financial instrument?
a. Convertible bond.
b. Foreign currency contract.
c. Loan receivable.
d. Warranty provision.
989. Which of the following research and development related costs should be capitalized and
depreciated over current and future periods?
a. Inventory used for a specific research period.
b. Administrative salaries allocated to research and development.
c. Research findings purchased to aid a particular research project current in process.
d. Research and development general laboratory building which can be put to alternative use in future.
990. Which of the following costs should not be capitalized?
a. Costs incurred to file for patent.
b. costs of testing prototype before economic feasibility have been demonstrated
c. Engineering costs incurred to advance the project to the full production stage
d. Acquisition cost of equipment to be used on current and future research projects.
991Start-up cost including legal fees incurred to organize a new entity should be.
a. Expensed incurred.
b. Capitalized and never amortized.
C. Capitalized and amortized over 5 years.
d. Capitalized and amortized over 40 years.
992. Operating losses incurred during the start-up years of a new business should be
a. Written off directly against retain earnings
b. Capitalized as a deferred charge and amortized over five years.
C Accounted for and reported like the operating losses of any other business.
d. Capitalized as an intangible asset and amortized over a period not to exceed 20 years.
993. Under PAS20 a government grant should be recognized when
a. The entity has complied with all the conditions attaching to the grant.
b. The entity has complied with all the conditions attaching to the grant and the grant will be received
c. Three is reasonable assurance that the entity will comply with the conditions attaching to the
government grant.
d. There is reasonable assurance that the entity will comply with the conditions attaching to the grant
and the grant will be received.
994. Which of the following is true regarding the income approach for government grant?
a. Depreciation is higher if the grant is an adjustment of the asset
B. Depreciation is higher and net income lower if the grant is an adjustment to the asset.
C. Depreciation is higher and if the grant is a deferred revenue and net income is not affected
D. Depreciation is higher and net income is lower if the grant is recorded as deferred revenue
995 Under PFRS 3 which of the following would not contribute to negative goodwill?
A bargain purchases
b. Making acquisition at the top of a "bull" market for shares
c. Errors in measuring the fair value of the acquiree's net identifiable assets
d. A requirement to measures net assets acquired at a value other than fair value
996. In a business combination what is the accounting treatment if an acquirer's interest in the fair value
of the net assets acquired exceeds the consideration transferred?
a. Recognized the excess immediately in profit or loss
b. Recognize the excess immediately in other comprehensive income
c. Reassess the recognition and measurement of the net assets acquired and the consideration
transferred and then recognize the excess immediately in profit or loss.
d. Reassess the recognition and measurement of the net assets acquired and the consideration
transferred and then recognize the excess immediately in other comprehensive income.
997. Which costs should be included in the consideration transferred in a combination?
a Fees paid to accountants.
b. Cost of maintaining an acquisition department
c. Both cost of maintaining an acquisition department and fees paid to accountants
d. Neither cost of maintaining an acquisition department nor feeds paid to accountants
998. During the current year, an entity acquired another entity in a transaction properly accounted for
as a business acquisition. At the time of the acquisition, some of the information for valuing assets was
incomplete. How should the acquirer account for the incomplete information in preparing the financial
statements immediately after the acquisition?
a. Record the uncertain item at the carrying amount of the acquire
b. Do not record the uncertain items until complete information is available
c. Record a contra account to the investment account for the amount involved
d. Record the uncertain item at a provisional amount measured at the date of acquisition
999. When does the measurement period end for a business combination in which there incomplete
accounting information on the date of acquisition?
A. Thirty days from the date of acquisition
b. On the final date when all contingencies are resolved
C. At the end of the reporting period in the year of acquisition
D. When the acquirer receives the information or one year from the acquisition date whichever occurs
earlier
1000. The private concession operator shall recognize the infrastructure asset as
a. Financial asset
b. Intangible asset
c. Either intangible asset or financial asset
d. Neither an intangible asset or financial asset