Investment in Equity

Which of the following is the first order of priority in recording acquisition of equity shares

• Fair value of the asset received

• Fair market value of the asset given

• Carrying amount of the asset given

• carrying amount of the asset received

All investments in equity instruments shall be measured at fair value?

• TRUE

• FALSE

Upon derecognition of financial assets measured at fair value through profit or loss, the difference between consideration received and the carrying amount shall be recognized in other comprehensive income

• TRUE

• FALSE

The following are dividend income except

• Property dividends

• liquidating dividends

• Shares received in lieu of cash

• Cash dividends

When to recognized dividend as income?

• Upon issuing of shares

• Upon date declaration

• Upon date of record

• Upon date of payment

A shareholder may received a share dividends which is different from the original shares?

• TRUE

• FALSE

It refers to a transaction whereby the outstanding shares are called in and replaced by a large number accompanied by a reduction in the par or stated value of each share?

• Special assessments

• Investment in unquoted equity instruments

• Split up

• Share right

Accounting for share rights may account for the following

• Accounted for separately

• No accounted for separately

• Both

• Neither of the two

Share rights accounted for separately are normally classified as

• Share capital

• Current asset

• Non-current asset

• Liability

If the shares rights were not exercised and expired, what is the journal entry?

• A credit to investment in equity instruments

• Memorandum entry

• A debit on loss on share rights

• none of the above