Pas 19 20

11/4/23, 10:37 AM PAS 19 & 20
PAS 19 & 20
PAS 19 & 20
Course/section *
BSA 2013
BSMA 2104
BSMA 2105
BSMA 2106
Other:
Name( Last Name, First Name, Middle Initial) *
Ecija, Daniella Mae M.
multiple choice
choose the best answer
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11/4/23, 10:37 AM PAS 19 & 20
Government grant related to non-depreciable asset that requires fulfillment of *

certain conditions.
Should not be recognized as income.
Should be recognized as income immediately.
Should be recognized as income over the periods which bear the cost of meeting the
conditions.
None of the above.
Imagine you are an employer. When should you recognize short-term employee *
benefits
Never
Every 15th and 30th of the month
When the employees have rendered service in exchange for the employee benefits
Every 1st day of the month
Which of the following is within the scope of PAS 20 *
Free technical and marketing advice
Forgivable loan for the government
Public improvements that benefits the entire community
Government assistance provided in the form of tax benefits
11/4/23, 10:37 AM PAS 19 & 20
Entity A has 20 employees who are entitled to one day paid vacation leave for *
each month of service rendered. Unused vacation leaves cannot be carried
forward and are forfeited when employees leave the entity. All the employees
have rendered service throughout the current year and have taken a total of 150
days of vacation leaves. The average daily rate of the employees in the current
period is ₱1,000. However, a 5% increase in the rate is expected to take into effect
in the following rate is 20%. How much will Entity A accrue at the end of the
current year for unused entitlements?
150,000
90,000
94,500
Repayment of government grants are accounted for *
Retrospectively
Prospectively
Not accounted for
Prospectively & Retrospectively
11/4/23, 10:37 AM PAS 19 & 20
The components of defined benefit cost include all, except *
Service cost
Contribution to the plan
Remeasurement
Net interest
When an Entity pays insurance premiums to find a postemployment benefit plan *

and the Entity has no legal or constructive obligation on the policy, the
postemployment benefit plan shall be treated as
Either defined contribution plan or defined benefit plan
Defined benefit plan
Multiemployer plan
Defined contribution plan
Which of the following statements define “the net defined benefit liability”? *
The change during the period in the net defined benefit liability that arises from the
passage of time
The present value, without deducting any plan assets, of expected future payments
required to settle the obligation resulting from employee service in the current and
prior periods
The deficit or surplus, adjusted for any effect of limiting a net defined benefit asset
to the asset ceiling
The present value of any economic benefits available in the form of refunds from the
plan or reductions in future contributions to the plan
11/4/23, 10:37 AM PAS 19 & 20
You are a business owner of Entity A with 10 employees. Each earning ₱20,000 *
per month. You pay salary on a bi-monthly basis. During the month of April 2021,
none of your employees were absent, late or have rendered overtime service.
When will you recognize the salaries expense and what amount for the first
payday in the month of April 2021?
April 15 ₱20,000
April 15, ₱20,000
April 15 ₱100,000
April 1 ₱100,000
An employee may provide services to an entity on a____?
full-time or part-time
permanent or temporary basis
casual basis
All of the above
11/4/23, 10:37 AM PAS 19 & 20
Actuarial gains and losses are changes in the present value of the defined benefit *
obligation resulting from:
Experience adjustments and any costs of managing plan assets
Actuarial gains and losses and any change in the effect of the asset ceiling
Experience adjustments and the effects of changes in actuarial assumptions
Actuarial gains and losses and the return on plan assets, excluding amounts
included in net interest on the net defined benefit liability
In the case of grants related to asset, which of these accounting treatments is *

prescribed by PAS 20?
Record the grant at a nominal value in the first year and write it off in the subsequent
year
Take it to the income statement and disclose it as an extraordinary gain
Either set up the grant as deferred income or deduct it in arriving at the carrying
amount of the asset.
Record the grant at fair value in the first year and take it to income in the subsequent
year
11/4/23, 10:37 AM PAS 19 & 20
In the case of grant related to income, which of these accounting treatment is *

Credit the grant to “retained earnings” on the balance sheet
Credit the grant to “general reserve” under shareholders’ equity
Credit the grant to sales or other revenue from operations in the income statement
Present the grant in the income statement as “other income” or as separate line
item, or deduct it from the related expenses
Example of government grants *
Receipt of financial aid in case of loss from a calamity
Forgiveness of an existing loan from the government
Benefit of government loan with below-market rate of interest
All of the above
A government grant that becomes receivable as compensation for expenses or *

losses already incurred should be recognized as income
None of the above
Of the period in which it becomes payable.
When received.
Of the period in which it becomes receivable.
11/4/23, 10:37 AM PAS 19 & 20
These are employee benefits which are payable after completion of employment *
Other long-term employee benefits
Termination benefits
Short-term employee benefits
Post-employment employee benefits
in the case of nonmonetary grant, which of the following accounting treatments is *

Record both the grant and the asset at fair value of the nonmonetary asset
Record only the asset fair value; do not recognize the fair value of the grant
Record the asset at replacement cost and the grant at a nominal value.
Record the grant at a value estimated by management
Under which of the following circumstances does “present obligation” exist? *
The entity has recorded this obligation in its financial statements
The entity has no realistic alternative but to make the payments
The entity has intentions to make the payments
All of the above
11/4/23, 10:37 AM PAS 19 & 20
Which of the following statement is true regarding the accounting for government *
grant related to an asset?
Expenses will be higher and net income lower if the grant is accounted for as an
adjustment to the asset.
Depreciation expense will be higher if the grant is recorded as deferred income, but
net income will be the same under the deferred income approach and deducted from
asset approach.
Depreciation expense will be higher if the grant is recorded as an adjustment to the

asset.
Expenses will be higher and net income lower if the grant ir recorded as deferred
income
Government assistance includes all of the following except *
Provision of guarantee.
Free technical advice
Government procurement policy.
All of the above are consider as government grant
11/4/23, 10:37 AM PAS 19 & 20
Which disclosure is not required for government? *
The accounting policy adopted for the government grant including method of
presentation
The nature and extend of government grant recognized and an indication from which
the entity has directly benefited
Unfulfilled conditions and other contingencies attaching to government assistance
The name of the government agency that gave the grant along with the date of
sanction of the grant by the government agency and the date when cash received in
case of monetary grant.
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11/4/23, 10:37 AM PAS 19 & 20

Name( Last Name, First Name, Middle Initial) *

Ecija, Daniella Mae M.

Government grant related to non-depreciable asset that requires fulfillment of *

Should not be recognized as income.

Should be recognized as income immediately.

None of the above.

Every 15th and 30th of the month

Every 1st day of the month

Which of the following is within the scope of PAS 20 *

Free technical and marketing advice

Forgivable loan for the government

Public improvements that benefits the entire community

Government assistance provided in the form of tax benefits

Repayment of government grants are accounted for *

Not accounted for

Prospectively & Retrospectively

The components of defined benefit cost include all, except *

Contribution to the plan

When an Entity pays insurance premiums to find a postemployment benefit plan *

Either defined contribution plan or defined benefit plan

Defined benefit plan

Defined contribution plan

April 15, ₱20,000

An employee may provide services to an entity on a____?

permanent or temporary basis

All of the above

Experience adjustments and any costs of managing plan assets

Experience adjustments and the effects of changes in actuarial assumptions

In the case of grants related to asset, which of these accounting treatments is *

Take it to the income statement and disclose it as an extraordinary gain

In the case of grant related to income, which of these accounting treatment is *

Credit the grant to “retained earnings” on the balance sheet

Credit the grant to “general reserve” under shareholders’ equity

Example of government grants *

Receipt of financial aid in case of loss from a calamity

Forgiveness of an existing loan from the government

Benefit of government loan with below-market rate of interest

All of the above

A government grant that becomes receivable as compensation for expenses or *

None of the above

Of the period in which it becomes payable.

Of the period in which it becomes receivable.

Other long-term employee benefits

Short-term employee benefits

Post-employment employee benefits

in the case of nonmonetary grant, which of the following accounting treatments is *

Record the grant at a value estimated by management

Under which of the following circumstances does “present obligation” exist? *

The entity has recorded this obligation in its financial statements

The entity has no realistic alternative but to make the payments

The entity has intentions to make the payments

All of the above

Depreciation expense will be higher if the grant is recorded as an adjustment to the

Government assistance includes all of the following except *

Free technical advice

Government procurement policy.

All of the above are consider as government grant

Which disclosure is not required for government? *

Unfulfilled conditions and other contingencies attaching to government assistance

This form was created inside of Batangas State University.

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