Scribd Logo
Upload

Welcome to Scribd!

  • Quiz Pas 28 Investments in Assoc. JV

    Uploaded by

    Llyana paula Suyu
    1K views2 pages

    Original Title

    QUIZ_PAS_28_INVESTMENTS_IN_ASSOC.___JV.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    1K views2 pages

    Quiz Pas 28 Investments in Assoc. JV

    Uploaded by

    Llyana paula Suyu

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    Page | 1

    PAS 28 Investments in Associates and Joint Ventures


    QUIZ:
    1. Which of the following best describes the term ‘significant influence’ as used under
    PAS 28?
    a. The holding of 20% interest in an investee.
    b. The ability to control an investee’s relevant activities through holding of
    significant portion of the investee’s voting rights.
    c. The power to participate in the financial and operating policy decisions of an
    entity.
    d. The contractually agreed sharing of profits and losses in an investee.

    2. Entity A owns 25% of the voting rights in Entity B. However, Entity A has no
    representation on the board of directors of Entity B. Which of the following
    statements is correct?
    a. Entity A cannot be presumed to have significant influence over Entity B because
    Entity A does not have board representation.
    b. Entity A is presumed to have signification influence over Entity B because it
    holds 25% or more of the voting rights in Entity B.
    c. Entity A is presumed to have signification influence over Entity B because it
    holds 20% or more of the voting rights in Entity B.
    d. Representation on an investee’s board of directors is never considered when
    determining the existence of significant influence.

    3. On January 1, 20x1, Entity A acquires 25% interest in Entity B for ₱800,000. Entity
    B reports profit of ₱1,000,000 and declares dividends of ₱100,000 in 20x1. How
    much is the carrying amount of the investment in associate on December 31, 20x1?
    a. 800,000
    b. 1,250,000
    c. 1,000,000
    d. 1,025,000

    4. The Hanwell Company acquired a 30% equity interest in The Northfield Company
    for CU400,000 on 1 January 20X6. In the year to 31 December 20X6 Northfield
    earned profits of CU80,000 and paid no dividend. In the year to 31 December 20X7
    Northfield incurred losses of CU32,000 and paid a dividend of CU10,000. In
    Hanwell's consolidated statement of financial position at 31 December 20X7, what
    should be the carrying amount of its interest in Northfield, according to IAS 28
    Investments in associates?
    a. CU438,000
    b. CU411,400
    c. CU414,400
    d. CU400,000
    (Adapted)

    “The Spirit of the Lord will rest on him— the Spirit of wisdom and of understanding, the
    Spirit of counsel and of might, the Spirit of the knowledge and fear of the Lord.“ (Isaiah
    11:2)
    - END –

    SOLUTION:
    3. Solution:
    This study source was downloaded by 100000815093086 from CourseHero.com on 06-06-2023 21:03:03 GMT -05:00

    https://www.coursehero.com/file/44843457/QUIZ-PAS-28-INVESTMENTS-IN-ASSOC-JVdocx/
    Page | 2

    Investment in associate
    1/1/x1 800,000
    Sh. in profit (1M x 25%) 250,000 25,000 Dividends (100K x 25%)
    1,025,000 12/31/x1

    4. Solution:
    Investment in associate
    1/1/x6 400,000
    Sh. in P (80K x 30%) 24,000 - Dividends
    9,600 Sh. in L (32K x 30%
    3,000 Dividends (10K x 30%)
    411,400 12/31/x2

    This study source was downloaded by 100000815093086 from CourseHero.com on 06-06-2023 21:03:03 GMT -05:00

    https://www.coursehero.com/file/44843457/QUIZ-PAS-28-INVESTMENTS-IN-ASSOC-JVdocx/
    Powered by TCPDF (www.tcpdf.org)

    You might also like