Updates in Financial Reporting Standard

Accounting Standards Council was created in what year?

• 1971

• 1981

• 1982

• 1961

It was formed last 2001 which replaces the International Accounting Standards Committee.

• ASC

• FRSC

• IASC

• IASCB

Replaced the interpretations committee.

• IFRIC

• PIC

• PFRS

• PAS

Has full discretion in developing and pursuing the technical agenda for setting accounting standards in the Philippines.

• IASB

• IAS

• IFRS

• FRSC

In preparing opening statement of financial position, an entity is required to:

• Recognize all assets and liabilities

• Derecognize all assets and liabilities required by PFRS.

• Measure all recognized assets and liabilities in compliance with PFRS.

• All of the above.

Intrinsic value is?

• The difference of market value of share option over the option price.

• The excess of market value over the nominal value.

• The difference between the market value and the fair value

• None of the above.

If an entity adopts PFRS for the first time in the current year, its first PFRS financial statements include the following:

• Two statement of comprehensive income

• Two statement of financial position

• Three statement of cash flows

• None of the above

An entity granted a share appreciation right to the CEO on January 1, 2022. After a 3-year service, the employee is entitled to receive a cash equal to the appreciation in share price over the market value on January 1, 2022. The market value on January 1, 2020 is the predetermined price for the purpose of determining the compensation. The share option right has the following terms:

Service period - January 1, 2022 - December 31, 2024

Number of shares - 100,000

Exercise date - January 1, 2025

The quoted prices of the entity's share are:

January 1, 2022 - 150

December 31, 2022 - 155

December 31, 2023 - 152

December 31, 2024 - 160

What is the debit entry on December 31, 2023?

• Salaries Expense 200,000

• Salaries Expense 33,333

• Salaries Expense 166,667

• Salaries Expense 500,000

An entity granted a share appreciation right to the CEO on January 1, 2022. After a 3-year service, the employee is entitled to receive a cash equal to the appreciation in share price over the market value on January 1, 2022. The market value on January 1, 2020 is the predetermined price for the purpose of determining the compensation. The share option right has the following terms:

Service period - January 1, 2022 - December 31, 2024

Number of shares - 100,000

Exercise date - January 1, 2025

The quoted prices of the entity's share are:

January 1, 2022 - 150

December 31, 2022 - 155

December 31, 2023 - 152

December 31, 2024 - 160

What is the debit entry on January 1, 2025?

• Accrued Salaries Payable 800,000

• Salaries Expense 1,000,000

• Accrued Salaries Payable 1,000,000

• Salaries Expense 800,000

An entity granted a share appreciation right to the CEO on January 1, 2022. After a 3-year service, the employee is entitled to receive a cash equal to the appreciation in share price over the market value on January 1, 2022. The market value on January 1, 2020 is the predetermined price for the purpose of determining the compensation. The share option right has the following terms:

Service period - January 1, 2022 - December 31, 2024

Number of shares - 100,000

Exercise date - January 1, 2025

The quoted prices of the entity's share are:

January 1, 2022 - 150

December 31, 2022 - 155

December 31, 2023 - 152

December 31, 2024 - 160

What is the journal entry on December 31, 2022

• Debit - Salaries Expense 500,000

  Credit - Accrued Salaries Payable 500,000

• Debit Salaries -Expense 166,667

  Credit - Accrued Salaries Payable 166,667

• Debit - Salaries Expense 200,000

  Credit - Accrued Salaries Payable - 200,000

• None of the above