CFAS REVIEWER PRE-FINALS

QUIZ 1 PAS 23

1. A company has the following loans in the place throughout the year ended Dec. 31, 20X8

- 2.2 million

2. Which of the following costs may not be eligible for capitalization as borrowing costs under
PAS 23?

- Imputed cost of equity

3. Capitalization of borrowing costs

- Shall be suspended only during extended periods of delays in which active

development is delayed.

4. An assets that necessarily takes a substantial period of time to get ready for its intended use
or sale is called?

- Qualifying assets

5. Which of the following may not be considered a “qualifying asset” under PAS 23?

- An expensive private jet that can be purchased from a local vendor

6. Depending on circumstances which of the following may be NOT be a qualifying assets

- None

7. An asset is being constructed for an enterprise’s own use.

- A part of the historical cost of acquiring the asset to be written off over the
estimated useful life of the asset

8. On January 1, 20X1, Entity A obtained a 10%, P5,000,000 loan, specially to finance the
construction of a building

- 7,320,000

9. Charles has borrowed P2.4 million to finance the building of a factory.

- 140,000

10. Interest and other cost incurred by an entity in connection with the borrowing of funds.

- Borrowing Cost
QUIZ 2 PAS 24

1. Which of the following is not required to be disclosed under PAS 24?

- The name of the parent of the entity’s associate

2. An entity has co-signed the mortgage note on the home of its president guaranteeing the
indebtedness in the event that the president should default.

- Disclosed only

3. The minimum disclosure about related parties transaction include all of the following except.

- Nature of the relationship

4. A related party transaction is transfer

- Between related parties, regardless of whether a price is charged

5. PAS 24 requires the disclosure of key management personnel compensation. Which of the
following is not included in this disclosure?

- Reimbursement of officers’ out-of-pocket expenses

6. Related parties include all of the following, except

- Two ventures simply because they share joint control over a joint venture

7. All of the following are related party transaction, except

- Took out a huge bank loan

8. Related party transaction includes all, except

- Sold a car to the uncle of the entity’s finance manager

9. Which of the following is/are basis for parties to be considered related

- All of the given

10. Which of the following is NOT a required minimum disclosure about related party
transaction?

- The amount of similar transaction with unrelated parties to establish that

comparable related party
QUIZ 3 PAS 26

1. Which of the following statement it true regarding the creation of separate funds,

- IAS 26 applies regardless of whether a separate fund is created and regardless of

whether there are trustees

2. The amount of benefits to be received by employee enrolled in defined contribution plan is

- Dependent on the contributions and investment income of the fund

3. The objective of IAS 26.

- Is to specify measurement and disclosure principles for the reports of retirement

benefit plans.

4. According to PAS 26, a hybrid plan is accounted for as

- Defined benefit plan

5. In a defined benefit plan, if the actuarial present value of promised retirement benefit
exceeds the net assets

- Deficit

6. An arrangement by which an entity provides benefit (annual income or lump sum)

- Retirement benefit plan

7. A retirement benefit plan by which employees receive benefits based on a formula usually
linked

- Defined benefit plan

8. A retirement benefit plan by which benefits to employees are based on the amount of funds
contributed to the plan

- Defined contributed plan

9. The financial statements of a retirement benefit plan, whether defined contribution plan or
defined benefit plan.

- Statement of cash flow

10. “Retirement benefit plans under which amounts to be paid as retirement benefits are
determined by contributions to a fund together with investment earnings thereof “

- Defined contribution plan

QUIZ 4 PAS 27

1. Consolidated financial statements are the financial statements of a group in which the assets,
liabilities, equity, income

- A. As those of a single economic entity

2. IAS 27 mandates which entities shall produce separate financial statements

- False

3. The financial statement of entity that does not have a subsidiary, associate, or joint venturer’s
interest

- True

4. Entity A, acquired an investment for P1M many years ago. At the end of the current reporting
period

- Any of these, as a matter of an accounting policy choice

5. These are those presented in addition to consolidated financial statements or the financial
statement of an entity with an investment

- Separate Financial Statements

6. Consolidated financial statements are the financial statements of a group in which the assets,
liabilities, equity, income

- A. As those of a single economic entity

7. Dividends from a subsidiary, a joint venture or an associate are recognized in profit or loss
unless the entity elects to use

- Equity Method

8. At the date of initial application, an investment entity that previously measured its
investment

- Fair value; Fair value

9. Separate financial statement are those presented by an entity in which the entity could elect

- D. A or C

10. The objective of IAS 27 is to prescribe the accounting and disclosure requirements for
investment

-E. All of the above

QUIZ 5 PAS 28

1. Under which of the following circumstances does an entity lose significant power over the
investee?

- When it loses the power to participate in the financial and operating policy
decision of that investee

2. If an entity holds directly and indirectly, _______ of the voting power of the investee.

- 20 percent or more

3. IAS 28 shall be applied by all entities that are investors with _______ an investee.

- D. A or B

4. The Hanwell Company acquired a 30% equity interest in the Northfield Company for CU400,
000 on 1 January 20X6

- CU411, 400

5. The equity method of accounting for investment is discussed under

- PAS 28

6. On January 1, 20X1, Entity A acquires 25% interest in Entity B for P800, 000, How much is the
carrying amount of the investment in associate on December 31, 20X1?

- 1,025,000

7. Which of the following best describes the term “significant influence” as used under PAS 28?

- The power to participate in the financial and operating policy decisions of an

entity

8. Significant influence is the power to participate in the financial and operating policy decisions
of the investee

- True

9. When determining whether an investor controls an investee, the investee should refer to

- PFRS 10

10. Entity A owns 25% of the voting right in Entity B. However, Entity A has no representation
on the board of directors of entity B

- Entity A presumed to have significant influence over Entity B because it holds

20% or more of the voting rights in Entity B.
QUIZ 6 PAS 29

1. Which of the following factors is NOT a cause of hyperinflation?

- All of the given

2. When restating financial statements in accordance with PAS 29 financial reporting in

Hyperinflation economies

-Only non-monetary items, statement of financial position amounts

3. PAS 29 is generally not applied by entities unless their functional currency is that of a
hyperinflationary economy.

- Stable monetary concept

4. Which of the following is not one of the indicators of hyperinflation under PAS 29?

- The cumulative inflation rate for the current year

5. Under constant peso accounting

- All items in the statement of profit or loss

6.One of the perceived weaknesses of historical cost accounting in times

- Holding gains on inventories are not identified

7. Which of the following statement is incorrect?

- According to PAS 29, The financial statements of an entity whose functional

currency

8. An entity is trying to determine which assets and which liabilities are monetary and non-
monetary

- Prepaid assets

9. Which term describes the rate at which money loses its value and the rate which price rise?

- inflation

10. Which of the following is not regarded as an indicator of hyperinflation?

- The cumulative rate of inflation over a five year periods is approaching 100%

11. Which of the following is restated by multiplying indices under the constant peso
accounting?

- Share premium

12. The main step required in the preparation of a restated statement of financial position

- The restatement of monetary items

13. These are money held and items to be received or paid in fixed or determinable amount of
money.

- Monetary item

14. In case of hyperinflation, holding which of the following is more favorable to the entity?

- Monetary Liabilities

15. Under constant peso accounting, items are restated using the formula:

- Historical cost X (Current price index / Historical price index ) However, if it is

impracticable

OTHER QUESTION

1. Net assets available for benefits are the assets of a plan _____

- Less liabilities other than

2. Retirement benefit plan investment should be carried at

- Fair value

3. A retirement benefit plan by which employees receive benefits based on a formula usually
linked to employee earnings. (IAS 26.8)

- Defined benefit plan

4. Disclosures for defined benefit plans includes

- Actuarial present value of promised benefit obligation

5. Retirement benefit plans are sometimes referred to by

- All of the given

6. IAS 26 accounting and reporting by retirement benefit plans ___ Ias 19 employee benefits

- Complements