Accounting Standards Quiz

What is the scope of PAS 27 Separate FS regarding which entities should produce separate financial statements?

• It does not mandate which entities should produce separate financial statements

• It mandates only publicly traded entities to produce separate financial statements

• It mandates only private entities to produce separate financial statements

• It mandates all entities to produce separate financial statements

How are investments in subsidiaries, associates, and joint ventures accounted for in separate financial statements under PAS 27?

• Using the equity method

• Using the cost method

• At historical cost

• At fair value

What is the definition of 'associate' as per PAS 28 Investments in Associates and Joint Ventures?

• An entity over which the investor has joint control

• An entity over which the investor has significant influence

• An entity over which the investor has minority ownership

• An entity over which the investor has control

What is the presumed percentage of voting power that indicates significant influence over an investee according to PAS 28?

• 20%

• 25%

• 15%

• 10%

Under the equity method, how is the investment in an associate initially recognized?

• At amortized cost

• At net realizable value

• At historical cost

• At fair value

What is the core principle for financial statements of an entity in a hyperinflationary economy according to PAS 29?

• Stated in terms of the measuring unit current at the beginning of the reporting period

• Stated in terms of the measuring unit current at the highest inflation rate period

• Stated in terms of the measuring unit current at the end of the reporting period

• Stated in terms of the measuring unit current at the midpoint of the reporting period

When are financial assets and financial liabilities offset and presented as a net amount in the statement of financial position?

• When there is a legal right of setoff only

• When there is an intention to settle the amounts on a net basis only

• When there is both a legal right of setoff and an intention to settle the amounts on a net basis or simultaneously

• When there is no legal right of setoff

What is the computation made for ordinary shares to represent how much was earned by each ordinary share during the period?

• Earnings per Share (EPS)

• Earnings per Stock (EPS)

• Earnings per Equity (EPE)

• Earnings per Unit (EPU)

When preparing interim financial reports, what is the treatment of gains and losses arising in an interim period?

• Recognized immediately and not deferred

• Deferred and recognized at the end of the year

• Recognized immediately and deferred

• Not recognized at all

What is the term used to describe a financial instrument that contains both a liability and an equity component?

• Mixed financial instrument

• Compound financial instrument

• Dual financial instrument

• Hybrid financial instrument