Afar
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afar...
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NATIONAL FEDERATION OF JUNIOR PHILIPINNE INSTITUTE OF ACCOUNTANTS – NATIONAL CAPITAL REGION ADVANCED FINANCIAL ACCOUNTING & REPORTING (AFAR)
1.
Certa Certain in bal balanc ance e shee sheet t acco account unts s of a forei foreign gn subs subsidi idiar ary y of Rose Rose Com Compan pany y have have been stated in Philippine pesos as follows: Stated Curr Curren ent t Rat Rates es Hist Histor oric ical al Rate Rates s Accounts receivable current P !""""" P !!"""" Accounts receivable long#term 1""""" 11"""" Prepaid insurance $"""" $$""" %oodwill &"""" &$""" P '("""" P ')"""" *. +he subsidiary,s subsidiary,s functional functional currency is the local currency unit. -hat amount should Rose,s balance sheet include for the preceding items a. P'("""" b. P'($""" c. P''"""" d. P'$"""" **. +he subsidiary,s subsidiary,s functional functional currency is peso. -hat total amount Rose,s balance sheet include for the preceding items a. P'("""" b. P'($""" c. P''"""" d. P'$"""" A. * / c0 ** / a C. I – a; II – c B. * / a0 ** / d . 2one of the above
!.
A part partner nersh ship ip begi begins ns its its fir first st yea year r with with the the fol follow lowing ing capit capital al bal balanc ances es: : Arthur capital P 3"""" 4a5ter capital &"""" Cartwright capital 1""""" +he articles of partnership stipulate stipulate that profits and losses be assigned in the following manner: 6ach partner is allocated interest e7ual to 1" percent of the beginning capital balance. 4a5ter is allocated compensation of P!"""" per year. Any Any rema remain inin ing g prof profit its s and and loss losses es are are allo alloca cate ted d on a (:(: (:(:' ' basi basis s respectively. 6ach partner is allowed to withdraw up to P$""" cash per year.
Assuming that the net income is P$"""" and that each partner withdraws the ma5imum amount allowed what is the balance in Cartwright,s capital account at the end of that year A. P1"$&"" C. P1"38"" 4. P1"3!"" D. P107,400 (.
'.
9nder PAS !8 one of the following is an indicator of hyperinflation. a. People People prefer prefer to eep eep thei their r wealt wealth h in mone monetar tary y asset assets s b. People prefer to keep their wealth in relativel !table forei"n forei"n c#rrenc c. *ntere *nterest st rates rates wages wages and and prices prices are are not not lined lined to to a price price inde5 inde5 d. +he cumul cumulati ative ve inflat inflation ion rate rate over over three three ;(< years years e5ceed e5ceeds s or is approach approaching ing $"=
+he follo followi wing ng are infor informat matio ion n reg regard ardin ing g par partne tners rship hip busin business ess: : *. A partnership has the following capital balances: Allen capital P3"""" 4urns capital ("""" Costello capital 8"""" Profits Profits and losses losses are split as follows follows: : Allen Allen ;!"=ay 1 !""& Par advanced Sub P)"""" in cash which was still outstanding at ecember (1 !""&. -hat portion of this advance should be eliminated in the preparation of the ecember (1 !""& consolidated balance sheet a. P)"""" b. P'!""" c. P!&""" d. P " A. I – c; II – a 4. * / d0 ** / d 1".
11.
C. * / c0 ** / d . 2one of the above
he modi)ed accrual &asis in accounng #or government transacons means a. *ncome is recogniDed when received while e5penses are recogniDed when incurred b. *ncome is recogniDed when earned while e5penses are recogniDed when paid c. *ncome is recogniDed when received while e5penses are recogniDed when paid e5cept for transactions that are re7uired by law to be accounted for under another basis %. Inco&e i! reco"ni*e% when earne% while e+pen!e! are reco"ni*e% when inc#rre%, e+cept for tran!action! that are re#ire% b law to be acco#nte% for #n%er ca!h or another ba!i! o &e highly e*ecve, the actual results o# the hedge must &e within a range o# a. 100- 1/0b. 1""= # 1!$= c. &"= # 1""= d. &"= # 1!$=
1!. Under PFRS +, it re#ers to a %arty that has a right to receive com%ensaon under an insurance contract i# an insured event occurs a. Ce%ant b. *nsurer c. Reinsurer d. Policyholder 1(.
Hartwell Company distributes the service department overhead costs to producing departments and the following information for the month of anuary is presented as follows: >aintenance 9tilities verhead costs incurred P1&)"" P 8""" Services provided to: >aintenance department # 1"= 9tilities department !"= # Producing department A '"= ("= Producing department 4 '"= 3"= Hartwell Company distributes service reciprocal method what would be maintenance costs A. > I P1&)"" J .1"9 C. > 4. P 2,000 3 .05 . >
1'.
department overhead costs based on the the formula to determine the total I P1&)"" J .("9 J.'"A J .'"4 I P!))"" J .'"A J .'"4
Financial statement o# not-#or-%ro)t organi'aon #ocuses on a. 4asic information for the organiDation as a whole b. 'tan%ar%i*ation of f#n%! no &enclat#re c. *nherent differences of not#for#profit organiDation reporting presentations d. istinctions between current fund and noncurrent fund
AFAR – NCR Frontliners 2017
that
impact
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1$. Pistahan Corporation is a manufacturing company engaged in the production of a single special product nown as K>arvelL. Production costs are accumulated with the use of a ?ob#order#cost system. +he following information is available as of une 1 !"1!: -or#in process.........................................P 1")1" irect materials inventory.............................. '&3"" *n analyDing the ?ob#order cost sheets the records disclosed that the compositions of the wor#in#process inventory on une 1 !"1! were as follows: irect materials used...................................P (83" irect labor ;8"" hoursanufacturing overhead applied d. >anufacturing overhead control -hat is the correct accounting for oint Arrangements a. All ?oint arrangements are accounted for under PAS !&. b. oint arrangements classified as ?oint ventures are accounted for under PRS 11. c. 9oint arran"e&ent! cla!!ifie% a! :oint vent#re! are acco#nte% for #n%er PA' 6. d. oint arrangements classified as ?oint operations are accounted for under PAS !&.
!!. %ains or losses that arise as a result of translating foreign currency denominated operations into the reporting currency are recogniDed in income: a. only if they are material items b. onl when the are !ettle% in ca!h c. in the reporting period in which they arise d. only when the interest in the foreign operation is sold
Under PAS , !hen it is probable that total contract costs on a fi"ed price construction contract !ill e"ceed total contract revenue, the e"pected loss should be
!(.
a. b. c. d.
Set off against profit of other construction contract where available RecogniDed as an e5pense immediately unless revenue to date e5ceeds costs to date Apportioned to the years of the contract according to the percentage of completion method eco"ni*e% a! an e+pen!e i&&e%iatel
!'. @ucille *nc. manufactures a product that gives rise to a by#product called Robon. +he only costs associated with Robon are additional processing costs of P1."" for each unit. @ucille accounts for Robon sales first by deducting its separable costs from such sales and then by deducting this net amount from the cost of sales of the ma?or product. or the past year !""" units of Robon were produced which were sold for P(."" each. Sales revenue and cost of goods sold from the main product were P$""""" and P'""""" respectively. Compute the gross margin after considering the by# product sales and costs. *f @ucille changes its method of accounting for Robon sales by showing the net amount as ther *ncome the effect on the gross margin would be: C. P4,000 A. P " 4. P!""" . P3"""
AFAR – NCR Frontliners 2017
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A lumber company produces t!o-by-fours and four-by-eights as #oint products and sa!dust as a by-product. $he pac%aged sa!dust can be sold for P& per pound. Pac%aging costs for the sa!dust are P.' per pound and sales commissions are '( of sales price. $he by-product net revenue serves to reduce #oint processing costs for #oint products. )oint products are assigned #oint costs based on board feet. *ata follo!s+ oint processing costs . . . . . . . +wo#by#fours produced ;board feet< . our#by#eights produced ;board feet< Sawdust produced ;pounds and P)$" to 2 pays P13$" to > and pays P8"" to 2 pa! P200 to $ an% $ pa! P7/0 to 8
he cost %er e.uivalent unit under the a. Current cost only b. Current cost plus cost c. C#rrent co!t pl#! co!t d. Current cost less cost
weighted average method o# %rocess cosng considers of ending wor in process inventory of be"innin" work in proce!! inventor of beginning wor in process inventory
+he wor#in#process account of the >alinta Company which uses a ?ob order cost system follows: >orkinproce!!
April 1 balance irect materials irect labor verhead applied
P!$""" $"""" '"""" (""""
inished goods
P1!$'$"
verhead is applied to production at a predetermined rate based on direct labor cost. +he wor#in#process on April (" represents the cost of ob 2o. '$3 which has been charged with direct labor cost of P(""" and ob 2o. )&8 which has been charged with applied overhead of P!'"". +he cost of direct materials charged to ob 2os. '$3 and )&8 amounted to: C. P7,/00 A. P'!"" 4. P'$"" . P&)"" ((.
+he 2atural Company ac7uired &"= of +he @oco Company for a consideration transferred of P1"" million. +he consideration was estimated to include a control premium of P!' million. @ocoQs net assets were P&$ million at the ac7uisition date. Are the following statements true or false according to PRS( Business combinations? (1) %oodwill should be measured at P(! million if the non#controlling interest is measured at its share of @ocalQs net assets. (2) %oodwill should be measured at P(' million if the non#controlling interest is measured at fair value. Statement (1)
A. B.
('.
Statement (2)
alse alse
alse +rue
Statement (1)
C. .
?r#e +rue
Statement (2)
)al!e +rue
+he >oon Company ac7uired a )"= interest in +he Swan Company for P1'!"""" when the fair value of SwanQs identifiable assets and liabilities was P1!""""". >oon ac7uired a 3$= interest in +he Homer Company for P(""""" when the fair value of HomerQs identifiable assets and liabilities was P3'"""". >oon measures non#controlling interests at the relevant share of the identifiable net assets at the ac7uisition date. 2either Swan nor Homer had any contingent liabilities at the ac7uisition date and the above fair values were the same as the carrying amounts in their financial statements. Annual
AFAR – NCR Frontliners 2017
NFJPIA-NCR impairment reviews recogniDed.
Page 8 of 14 have
not
resulted
in
any
impairment
losses
being
9nder PRS ( 4usiness combinations what figures in respect of goodwill and of gains on bargain purchases should be included in >oonQs consolidated statement of financial position A. @oo%will P/60,000; @ain! on the bar"ain p#rcha!e! P11,000 4. %oodwill: 2il or Dero0 %ains on the bargain purchases: P113""" C. %oodwill: 2il or Dero0 %ains on the bargain purchases: 2il or Dero . %oodwill: P$&""""0 %ains on the bargain purchases: 2il or Dero ($.
A 4 and C are partners in an accounting firm. +heir capital account balances at year#end were A P8""""0 4 P11"""" and C P$"""". +hey share profits and losses on a ':':! after the following special terms: 1. Partner C is to receive a bonus of 1"= of net income after the bonus. !. *nterest of 1"= shall be paid on that portion of a partners capital in e5cess of P1""""". (. Salaries of P1"""" and P1!""" shall be paid to partners A T C respectively. Assuming a net income of P''""" for the year the total profit share of partner C was: A. P 7,600 C. P18'"" 4. P13&"" . P18&""
"tems 3% and 3& are based on the following information +he income statement submitted by the Pampanga 4ranch to the Home ffice for the month of ecember !"1" is shown below. After effecting the necessary ad?ustments the true net income of the 4ranch was ascertained to be P1$3""". Sales OOOOOOOOOOOOOOOOOOOOOOOOOOOOO P 3""""" Cost of sales: *nventory ecember 1OOOOOOOOOOOO P &"""" Shipments from Home fficeOOOOOOO ($"""" @ocal purchasesOOOOOOOOOOOOOOOOOO ("""" +otal available for saleOOOOOOOOO P'3"""" *nventory ecember (1OOOOOOOOOOO 1""""" (3"""" %ross margin OOOOOOOOOOOOOOOOOOOOOO P!'"""" perating e5penses OOOOOOOOOOOOOOOO 1&"""" 2et income P 3"""" +he branch inventories were: 12'01'201 12'31'201 0 0 >erchandise from home officeOOOOOOO P )"""" P &'""" @ocal purchasesOOOOOOOOOOOOOOOOOOOO 1"""" 13""" +otal OOOOOOOOOOOOOOOOOOOOOOOOOOOOO P &"""" P1""""" (3. +he billing price based on cost imposed by the home office to the branch and C. 40A. 1'"= 4. 1""= . !8= ().
(&.
+he balance of allowance for overvaluation of branch ecember (1 !""& after ad?ustment. A. P1"""" C. P1,000 4. P!'""" . 2one of the above
$he partners of the Partnership started liquidating their business on )uly , &'', at !hich time the partners !ere sharing profits and losses /'( to and 0'( to . $he balance sheet of the partnership appeared as follo!s+ !ssets
Cash Receivable *nventory 67uipment P3$!"" Accumulated epreciation ("&"" +otal
P
&&"" !!'"" (8'""
(''"" P1"$"""
(iabilities ) Capital Accounts payable > capital > drawing 2 capital 2 drawing 2 loan +otal
P (!'"" P(1""" BB$'"" P((!"" BBB!""
!$3"" ((""" 1'""" P1"$"""
uring the month of uly the partners collected P3"" of the receivables with no loss. +he partners also sold during the month the entire inventory on which they realiDed a total of P(!'"". How much of the cash was paid to >,s capital on uly (1 !"1" A. P!$3"" C. P(!" B. P /,400 . P "
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ollowing data pertain to >atiisin Company which sells appliances on an installment basis: 006 002 010 *nstallment sales P(8"""" P'!"""" P'&"""" Cost of sales !()8"" !'(3"" !&&""" )ro& 'ale! a%e in
*nstallment accounts receivable balances: anuary 1 !"1" ecember (1 !"1"
006 P !'""" #
002 P (""""" P 3""""
010
P (!""""
Repossessions on defaulted accounts were made during !"1" as follows:
Account balance 2et resale value of repossessed merchandise
)ro& 'ale! a%e in !""8 !"1" P 1"""" P $"""
'$""
($""
+he total realiDed gross profit in !"1" on the collections of !""& !""8 and !"1" sales was: A. P 8(3" C. P 833"" 4. P,000 . P13)83" '".
+he net gain ;loss< on repossession on defaulted sales of !""8 and !"1" was: C. P 600 A. P $"" 4. P;&""< . P;1(""<
'1.
Pasig %arment Company operates a branch in Cabanatuan City. At the end of the year the 4ranch account in the boos of the home office at >anila shows a balance of P1$"""". +he following information are ascertained: 1. +he home office has billed the branch the amount of P()$"" for the merchandise which was in transit on ecember (1. !.
A home office accounts receivable for P1"$"" was collected by the branch. Said collection was not reported to the home office by the branch.
(.
Supplies of P'$"" was returned by the branch to the home office but the home office has not yet reflected in its records the receipt of the supplies. +he branch made profit of P1"1"" for the month of ecember but the home office erroneously recorded it as P111&". +he branch has not received the cash in the amount of P!$""" sent by home office on ecember (1. +his was charged to %eneral 65pense account.
'. $.
All transactions are presumed to have been properly recorded. -hat is the balance of the Home ffice account on the boos of the branch as of ecember (1 before ad?ustments A. P1!18!" C. P11)'!" 4. P1(,000 . P1"38!" '!.
'(.
-hat is the ad?usted balance of the reciprocal accounts C. P117,40 A. P 83'!" 4. P1"38!" . P1)88!" +he Carly Company owns )$= of +he Halley Company. +he following figures are from their separate financial statements: Carly: +rade receivables P1"'"""" including P("""" due from Halley. Halley: +rade receivables P!1$""" including P'"""" due from Carly. According to PAS !) Consolidated and separate financial statements what figure should appear for trade receivables in CarlyQs consolidated statement of financial position A. P1!1$""" C. P1!$$""" D. P1,16/,000 4. P1!!$"""
''.
+he -hite Company ac7uired an &"= interest in +he Pulley Company when PulleyQs e7uity comprised share capital of P1""""" and retained earnings of P$""""". PulleyQs current statement of financial position shows share capital of P1""""" a revaluation reserve of P'""""" and retained earnings of P1'""""". 9nder PAS !) Consolidated and separate financial statements what figure in respect of PulleyQs retained earnings should be included in the consolidated statement of financial position
AFAR – NCR Frontliners 2017
NFJPIA-NCR A. P )!"""" B. P1''""""
'$.
Page 10 of 14 C. P1"'"""" D. P1,/0,000
+he Snipes Company owns 3$= of +he %enie Company. n the last day of the accounting period %enie sold to Snipes a non#current asset for P!""""". +he asset originally cost P$""""" and at the end of the reporting period its carrying amount in %enieQs boos was P13"""". +he groupQs consolidated statement of financial position has been drafted without any ad?ustments in relation to this non#current asset. 9nder PAS!) Consolidated and separate financial statements what ad?ustments should be made to the consolidated statement of financial position figures for non#current assets and retained earnings A. B. C. D.
'3.
2on#current assets *ncrease by P(""""" Reduce by P'"""" e%#ce b P40,000 *ncrease by P("""""
Retained earnings *ncrease by P18$""" Reduce by P!3""" e%#ce b P40,000 *ncrease by P("""""
4onifacio contractors had a (#year construction contract in !"1! for P8""""". +he company uses the percentage#of#completion method for financial statement purposes. *ncome to be recogniDed each year is based on the ratio of cost incurred to total estimated cost to complete the contract. ata on this contract follows: Accounts receivable / construction contract billings P Construction in progressOOOOOOOOOOOOOOOOOOOOOOOOOOOOP 8()$" @ess: Amounts billedOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO &'()$ 1"= retentionOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
(""""
2et income recogniDed in !"1! ;before ta5igu a noncurrent asset for P1""". +he assetQs original cost was P!$"" and on ecember (1 !"1! its carrying amount in EirgilQs boos was P&"". +he groupQs consolidated statement of financial position has been drafted without any ad?ustments in relation to this non#current asset. 9nder PAS!) Consolidated and separate financial statements what ad?ustments should be made to the consolidated statement of financial position figures for non#current assets and non#controlling interest A. B. C. D.
2on#current assets *ncrease by P1$"" Reduce by P!"" Reduce by P!"" Increa!e b P1,/00
2on#controlling interest *ncrease by P$!$ 2o change Reduce by P)" $o chan"e
'8. +he Roel Company ac7uired e7uipment on anuary 1 !""8 at a cost of P&""""" depreciating it over & years with a nil residual value. n anuary 1 !"1! +he >uldon Company ac7uired 1""= of Roel and estimated the fair value of the e7uipment at P'3"""" with a remaining life of $ years. +his fair
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value was not incorporated into RoelQs boos and the depreciation e5pense continued to be calculated by reference to original cost. 9nder PAS !) Consolidated and separate financial statements what ad?ustments should be made to the depreciation e5pense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended ecember (1 !"1( epreciation A. *ncrease by B. *ncrease by C. ecrease by D. Decrea!e b $".
e5pense P&""" P&""" P&""" P6,000
Carrying amount *ncrease by P!'""" ecrease by P!'""" *ncrease by P!'""" Decrea!e b P4,000
%oodwill should be recorded in the accounting records only when a. *t is internally generated b. *t can be established that a definite benefit or advantage has resulted to a firm from some item such as good name capable staff or reputation c. It i! ac#ire% thro#"h the ac#i!ition of another b#!ine!! d. A firm reports above normal earnings for five or more consecutive years
"tems *1 and *2 are based on the following information Apo Supply Company is engaged in merchandising both at Home ffice in >aati >etro >anila and a branch in avao. Selected accounts in the trial balances of the Home ffice and the branch at ecember (1 !"1" follow: ebits *nventory anuary 1 !"1" avao 4ranch Purchases reight#in from home office Sundry e5penses
Home ffice P !(""" $&("" 18""""
4ranch P 11$$" 1"$""" $$"" !&"""
$!"""
Credits Home office Sales Sales to 4ranch Allowance for branch inventory anuary 1 !"1"
P1$$""" 11""""
P $(("" 1'""""
1"""
Additional information:
1. avao branch receives all its merchandise from the home office. +he Home ffice bills the goods at cost plus 1"= mar#up. At ecember (1 !"1" a shipment with a billing value of P$""" was in transit to the branch. reight on this shipment was P!$" which is to be treated as part of inventory. !. ecember (1 !"1" inventories e5cluding the shipment in transit are: Home office at costOOOOOOOOOOOOOOOOP ("""" avao branch at billed value ;e5cluding freight of P$!"anufacturing uses bacflush costing to account for an electronic meter it maes. uring August !"11 the firm produced 13""" meters of which it sold 1$&"". +he standard cost for each meter is: irect material P !" Conversion costs '' +otal P 3' Assume that the company had no inventory on August 1. +he following event too place in August: 1. Purchased P(!"""" of direct materials. !. *ncurred P)"&""" of conversion costs. (. Applied P)"'""" of conversion costs to Raw and *n Process *nventory. '. inished 13""" meters. $. Sold 1$&"" meters for P1"" each. Compute the inished %oods ending and the amount of Cost of %oods Sold after the ad?ustment of over#under applied conversion cost: inished %oods ending Cost of %oods Sold as ad?usted A. P #"# P 1"1$!"" 4. 1!&"" 1"11!"" C. #"# 1"!'""" D. 1,600 1,01/,00
5!e the followin" infor&ation for #e!tion! /6 to /2
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NFJPIA-NCR
Page 13 of 14
n anuary 1 ac7uired &" percent of the outstanding voting stoc of SF for P!3"""" cash consideration. +he remaining !" percent of SF had an ac7uisition# date fair value of P3$""". n anuary 1 SF possessed e7uipment ;$#year life< that was undervalued on its boos by P!$""". SF also had developed several secret formulas that assessed at P$"""". +hese formulas although not recorded on SF,s financial records were estimated to have a !"#year future life. s o# /ecem&er !1, the )nancial statements a%%eared as #ollows0 JJ Revenues P !300"000# Cos$ of goo%s so&% 140"000 '()enses 20"000 Ne$ *n+o,e P!140"000# Re$a*ne% ean*ngs 1.1 P!300"000# Ne$ *n+o,e !140"000# /*v*%en%s )a*% -0Re$a*ne% ean*ngs" 12.31 P!440"000# Cas an% e+e*va&es P210"000 Inven$o 150"000 Inves$,en$ *n JJ 260"000 'u*),en$ !ne$# 440"000 o$a& asse$s P1"060"000 *a*&*$*es P!420"000# Co,,on s$o+ !200"000# Re$a*ne% ean*ngs" 12.31 !440"000# o$a& &*a*&*$*es an% eu*$*es P!1"060"000#
SZ P!200"000# 80"000 10"000 P!110"000# P!150"000# !110"000# -0P!260"000# P90"000 110"000 -0300"000 P500"000 P!140"000# !100"000# !260"000# P!500"000#
uring the year bought inventory for P&"""" and sold it to SF for P1""""". SF had paid for only half of this purchase by the end of the year. f these goods SF still owns3" percent on ecember (1. $&. a. b.
-hat is the total of consolidated revenues P$""""" c. P'!"""" %. P400,000 P'3""""
a. b.
-hat is the total consolidated cost of goods sold P1'"""" c. P1("""" %. P1(,000 P1$!"""
$8.
3".
or which type of hedge are changes in fair value deferred and amortiDed as an equity adjustment a. Ca!h flow he%"e b. perating hedge c. air value hedge d. 2otional value hedge
31.
-hich models are allowed to be used by the private operator for build# operate#transfer ;4+< schemes under *R*C 1! * / inancial Asset model ** / *ntangible Asset model 222 3 Pro%erty, Plant 4 5.ui%ment model a. I an% II b. * and *** c. ** and *** d. * ** and ***
3!.
*f shares are issued as part of the consideration paid transactions costs such as broerage fees may be incurred. According to PRS ( 4usiness Combinations the appropriate accounting treatment for such costs in the records of the ac7uirer is a debit to: a. Cash b. *nvestments c. 'hare capital d. Ac7uisition e5penses
5!e the followin" infor&ation for #e!tion! ( to / n 1(53 Pylu5 sold e7uipment costing P1""""" to its 1""=#owned subsidiary Sylu5 for P&"""". At the time of the sale the e7uipment had been $"= depreciated ;using the straight#line method and an assigned life of 1" yearsaretable e7uity securities I P13""" and *nventory I P13""". b. >aretable e7uity securities I P1)""" and *nventory I P1)""". c. >aretable e7uity securities P18""" and *nventory I P13""". %. arketable e#it !ec#ritie! P12,000 an% Inventor P12,000. 3). Assume that the peso is the subsidiary,s functional currency. -hat balances does a consolidated balance sheet report as of ecember (1 !"5' a. >aretable e7uity securities I P13""" and *nventory I P13""". b. >aretable e7uity securities I P1)""" and *nventory I P1)""". c. arketable e#it !ec#ritie! P12,000 an% Inventor P1,000. d. >aretable e7uity securities P18""" and *nventory P18""". 3&. 9nder PRS 1" which is 2+ one of the three ;(< elements of control a. power over the investee b. hol%in" &a:orit votin" ri" ht! c. e5posure or rights to variable returns from involvement with the investee d. the ability to use power over the investee to affect the amount of the investor,s returns 38.
he test indicating that an intra-group business realied is a. the generation of profit from the transaction
b. c. d.
)".
transaction
has
been
the involve&ent of an e+ter nal part in the tran!action the presence of only within the group as parties to the transaction whether or not an operating profit or loss occurred as a result of the transaction
Under 67S, it is an authori'aon issued &y the /89 to government agencies to withdraw cash #rom the 6aonal reasury through the issuance o# 9odi)ed /is&ursement System chec:s a. Allotment b. bligation c. Appropriation %. $otice of Ca!h Allocation
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