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This Study Resource Was: Conceptual Framework and Acctg Standards 1.10
This Study Resource Was: Conceptual Framework and Acctg Standards 1.10
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1. According to PFRS 1, an entity’s first PFRS financial statements shall include, at the
minimum, at least (choose the incorrect statement)
a. three statements of financial position
b. two statements of financial position
c. two statements of comprehensive income
d. two statements of cash flows
2. On January 1, 20x4, Entity A has granted 600 share options to each of its 100
employees. The options vest in three years’ time. Each share option has a fair value
of ₱100 on grant date. Information on employee departure is as follows:
• January 1, 20x4: estimate of employees leaving the entity during the vesting
period – 4%
• December 31, 20x4: revision of estimate of employees leaving to 5% before
vesting date
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• December 31, 20x5: revision of estimate of employees leaving to 6% before
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vesting date
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• December 31, 20x6: actual employees leaving 5%
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How much is the salaries expense in 20x5?
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a. 2,000,000
b. 1,880,000 rs e
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c. 1,860,000
d. d. 0
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C (600 x 100 x 100) x 94% x 2/3) – (600 x 100 x 100) x 95% x 1/3) = 1,860,000
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4. Which of the following assets of an acquiree may not be included when computing
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5. Imagine you are an awesome auditor. Your “not-so-awesome” client does not know
when to classify assets and liabilities as current or non-current. Which of the
following standards would you suggest your client should refer to?
a. PAS 1
b. PAS 24
c. PAS 34
d. PFRS 1000
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6. Imagine you are an awesome accountant. You client, Entity A which is engaged in
farming activities, asked you for an advice on how it will account for its agricultural
land. Which of the following standards would you advise Entity A should use?
a. PAS 7
b. PAS 16
c. PAS 40
d. PAS 41
7. Provisions, contingent liabilities and contingent assets are accounted for using
a. PAS 37.
b. PFRS 6.
c. PAS 29.
d. PAS 8.
8. To account for additions and disposals of items of property, plant and equipment, a
CPA would most likely refer to the accounting and disclosure requirements of
a. PAS 2.
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b. PAS 40.
c. PFRS 5.
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d. PAS 16.
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9. Entity X acquires 90% interest in Entity Y in a business combination. The most
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relevant Standard to be applied to this transaction is
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a. PAS 28.
b. PAS 3.
c. PFRS 5.
d. PFRS 3.
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a. PAS 1.
b. PAS 2.
c. PFRS 1.
d. PFRS 2.
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11. You are a member of the board of directors of ABC Co. Your company acquired a
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building to be held solely for rentals. You are tasked in selecting an appropriate
accounting policy for the building. In this regard, you will most likely refer to which of
the following standards?
a. PAS 17
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b. PAS 39
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c. PAS 40
d. PAS 41
12. You are the sole proprietor of Entity A. As a requisite to your business loan
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application, you were required by the bank to submit audited financial statements.
During the audit of your financial statements, the auditor questioned the carrying
amount of your land. The auditor believes that the carrying amount is overstated
and needs to be written down to its recoverable amount. In your discussions with
your auditor, the auditor would most likely refer to this standard in her report?
a. PAS 36
b. PFRS 1
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c. PAS 26
d. PAS 12
13. Events after the reporting period are accounted for under
a. PAS 1.
b. PAS 10.
c. PFRS 1.
d. PAS 24.
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c. interim financial reporting.
d. the presentation of financial instruments.
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16. Which of the following is not one of the current PFRSs?
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a. PAS 2
b. PAS 3
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c. PAS 7
d. PAS 10
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This study source was downloaded by 100000827186659 from CourseHero.com on 06-03-2021 02:30:11 GMT -05:00
https://www.coursehero.com/file/75297631/CONCEPTUAL-FRAMEWORK-AND-ACCTG-STANDARDS-110docx/
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