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WorksheetsPSAK 110, 227, 234 Quiz
Total questions: 10
Worksheet time: 5mins
What is the correct definition of a Consolidated Financial Statement?
A report that shows only the parent company’s financial position.
A financial report that presents a business group’s assets, liabilities, equity, income, expenses, and cash flows as a single economic entity.
A statement prepared for each subsidiary individually.
A report that only includes investment entities’ assets.
What is the main purpose of a consolidated financial statement according to PSAK 110?
To show only the financial position of the parent company
To combine the financial results of the parent and subsidiaries as one entity
To report transactions between unrelated companies
To separate the results of each subsidiary
Control in PSAK 110 exists when an investor has:
Only voting rights in a subsidiary
Power over the investee, exposure to variable returns, and the ability to use power to affect returns
A contract with another company
More than 25% of ownership
What does Non-controlling Interest (NCI) represent?
The equity in a subsidiary that belongs to other shareholders
The total retained earnings of the parent
The long-term debt of the subsidiary
The dividends paid to the parent
According to PSAK 227, separate financial statements are:
Optional and serve as supplementary information
Mandatory for all entities
Used to replace consolidated financial statements
Only used for subsidiaries
In separate financial statements, investments in subsidiaries can be recorded using:
Acquisition cost, PSAK 109 (Financial Instruments), or the equity method
Only fair value
Market value at reporting date
Only historical cost
According to PSAK 234, an interim financial statement is:
A financial report for a shorter period than a full fiscal year
The company’s annual financial report
A statement that includes only cash flows
A budget plan for the next year
The main objective of PSAK 234 is to:
Regulate tax reporting for interim periods
Define minimum content and measurement principles for interim financial reports
Replace annual reports with mid-year ones
Establish rules for mergers and acquisitions
Under the Integral Theory in PSAK 234, each interim period is considered:
A separate accounting period
An integral part of the entire fiscal year
A trial period before the main fiscal year
A forecast period with no real transactions
When a parent loses control of a subsidiary, PSAK 110 requires the parent to:
Derecognize the subsidiary’s assets, liabilities, and goodwill, and recognize any gain or loss
Continue consolidating until liquidation
Transfer all assets to the government
Revalue only the subsidiary’s liabilities
