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WorksheetsCFAS Qiuz - Finals
Total questions: 19
Worksheet time: 13mins
Which of the following is considered a government grant under PAS 20?
Award of major government contracts
Cancellation of an existing loan from the government
Free technical advice
Public improvements
Which of the following is not considered a government grant under PAS 20?
Financial aid
Benefit of subsidized loans
Tax breaks
Forgivable loans
The main concept used in recognizing income from government grants is
capital approach
historical cost
matching
materiality
In 20x1, Entity A proposes an environmental clean-up project for a river. The government supports this project and gives Entity A a ₱1M monetary grant conditioned that the money will only be spent on the proposed project. The proposed project is expected to take about 2 years to complete. Entity A starts the clean-up project in 20x2. How should Entity A recognize income from the government grant?
in full when Entity A receives the grant
over 2 years starting in 20x1
over the period of the project as expenses are incurred
the grant is not recognized as income
According to PAS 20, a government grant that becomes repayable is accounted for
retrospectively.
prospectively.
a or b
not accounted for
You are an auditor. ABC Philippines Co., your client, is not sure on what to disclose in its financial statements as its functional currency. Relevant information follows: ABC Philippines Co. is a branch of ABC U.S. Co. ABC Philippines operates in a Philippine Economic Zone Authority (PEZA) Special Economic Zone. ABC Philippines is engaged in the apparel business. All of its raw materials are imported from the main office in the U.S. and all of its finished products are exported directly to U.S. customers. The U.S. customers remit payments to the U.S. main office. The U.S. main office will then provide the Philippine branch its working capital needs. None of ABC Philippines Co.s' finished products are sold in the Philippines. The raw materials imported and finished goods exported are denominated in U.S. dollars. What is ABC Philippines Co.'s functional currency?
Philippine peso
U.S. dollar
a or b
none of these
Based on the previous question, ABC Philippines Co. is required to file audited financial statements with the Philippine Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR). What is the presentation currency for the financial statements to be filed with the said government agencies?
Philippine peso
U.S. dollar
a or b
none of these
These are those which do not give rise to a right to receive (or an obligation to deliver) a fixed or determinable amount of money.
Monetary items
Non-monetary items
Financial items
Non-financial items
On December 1, 20x1, you imported a machine from a foreign supplier for $100,000, due for settlement on January 6, 20x2. Your functional currency is the Philippine peso. When preparing the December 31, 20x1 statement of financial position, which of the following will you translate to the closing rate?
machine
accounts payable
a and b
none of these
On December 1, 20x1, you imported a machine from a foreign supplier for $100,000, due for settlement on January 6, 20x2. Your functional currency is the Philippine peso.
The relevant exchange rates are as follows:
Dec. 1, 20x1 Dec. 31, 20x1 Jan. 6, 20x2
₱50:$1 ₱52:$1 ₱47:$1
How much foreign exchange gain (loss) will you recognize on December 31, 20x1?
200,000
c. 100,000
(200,000)
d. (100,000)
On January 1, 20x1, Entity A obtained a 10%, ₱5,000,000 loan, specifically to finance the construction of a building. The proceeds of the loan were temporarily invested and earned interest income of ₱180,000. The construction was completed on December 31, 20x1 for total construction costs of ₱7,000,000. How much is the cost of the building on initial recognition?
7,320,000
c. 7,500,000
7,000,000
d. 6,680,000
Which of the following may not be considered a "qualifying asset" under PAS 23?
A power generation plant that normally takes two years to construct.
An expensive private jet that can be purchased from a local vendor.
A toll bridge that usually takes more than a year to build.
A ship that normally takes one to two years to complete.
An asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred during the construction period as a result of expenditures for the asset is
a part of the historical cost of acquiring the asset to be written off over the estimated useful life of the asset.
interest expense in the construction period.
recorded as a deferred charge and amortized over the term of the borrowing.
a part of the historical cost of acquiring the asset to be written off over the term of the borrowing used to finance the construction of the asset.
Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23?
Interest on bonds issued to finance the construction of a qualifying asset.
Amortization of discounts or premiums relating to borrowings that qualify for capitalization.
Imputed cost of equity.
Exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs pertaining to a qualifying asset.
Capitalization of borrowing costs
Shall be suspended during temporary periods of delay.
May be suspended only during extended periods of delays in which active development is delayed.
Should never be suspended once capitalization commences.
Shall be suspended only during extended periods of delays in which active development is delayed.
PAS 24 requires the disclosure of key management personnel compensation. Which of the following is not included in this disclosure?
short-term employee benefits
termination benefits
share-based payment
reimbursements of officers' out-of-pocket expenses
Which of the following is not required to be disclosed under PAS 24?
A parent-subsidiary relationship when there were transactions between them during the period.
A parent-subsidiary relationship when there were no transactions between them during the period.
Loans to officers
The name of the parent of the entity's associate
These are those presented in addition to consolidated financial statements or the financial statements of an entity with an investment in associate or joint venture that is accounted for using equity method in accordance with PAS 28.
Individual financial statements
Separate financial statements
Consolidate financial statements
Equity financial statements
Entity A acquired an investment in associate for ₱1M many years ago. At the end of the current reporting period, the investment has a fair value of ₱2.9M. If the equity method is used, the investment would have a current carrying amount of ₱2.6M. In Entity A's separate financial statements, the investment should be valued at
1,000,000.
2,600,000.
2,900,000.
any of these, as a matter of an accounting policy choice
