1. Under PFRS 3, the goodwill will be reduced by the impairment in getting the amount of goodwill to be presented in the consolidated financial statement for the subsequent reporting date after the date of acquisition.

True

or

False?

2.In computation of the Non-Controlling Interest in the Net Income of the Subsidiary, the over and under valuation of inventories and depreciable assets are considered.

True

or

False

3.If the carrying value of the net assets of the subsidiary is equal to its fair value, there will be no adjustments in the reported net income of the subsidiary when computing the net income share of the parent from subsidiary.

True

or

False?

4.Dividends received by the parent from the subsidiary is eliminated only if the parent is not an SME.

True

or

False

5.Consolidated net income is the sum of the net income attributable to the parent and non-controlling interest in the net assets of the subsidiary.

True

False

6.Undervaluation of inventories is deducted in the net income of the subsidiary in computing the consolidated net income.Required to answer.

True

or

False

7.To get the Non-Controlling Interest in the Net Assets Subsidiary, dividends declared by the subsidiary to the NCI is added.

True

or

False

8.Non-Controlling Interest in the Net Assets Subsidiary is a component of the equity of the consolidated entity.

True

or

False

9.When the equipment of the subsidiary is identified to be undervalued at the date of acquisition, the net income of the subsidiary is not anymore adjusted for such effect in calculating the consolidated net income.

True

or

False

10.Goodwill is amortized for ten years under both the PFRS 3 and PFRS for SMEs.

True

or

False