ACCOUNTING FOR BUSINESS COMBINATION

1. According to PAS 27, which of the following should produce separate financial statements?

subsidiaries

associates

a and b

neither a nor b

2. According to PAS 27, these are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity *

Consolidated Financial Statements

Combined Financial Statements

a or b

Neither a nor b

3. According to PAS 27, these are those presented by a parent (i.e. an investor with control of subsidiary) or an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost or in accordance with PFRS 9. *

Separated Financial Statements

PFRS 9 Financial Statements

Held for trading financial statements

Historical financial statements

4. Which of the following pertains to separate financial statements as defined under PAS 27? *

The financial statements of a branch

The financial statements of an entity who does not have any investment in other entities, but is a subsidiary of another entity

The financial statements of an investor in an associate wherein the equity method is used to account for the investment

The financial statements of a parent in which the investment in subsidiary is accounted for at fair value through profit or loss.

5. Investments in subsidiaries, joint ventures and associates are accounted for in the separate financial statements

at cost

at fair value in accordance with PFRS 9

using equity method

any of these

True or False 1. Sustainable development as a concept was launched in the late 1990s. 2. Sustainability reporting started with public sector companies. 3. Sustainability information includes both financial and non-financial information. 4. Sustainability reporting can be a tool to attain cost savings 5. One of the main developers of sustainability reporting has been the Global Reporting Initiative (GRI) 6. Human rights performance indicators focus on the impacts that organizations have on the communities in which they operate, and how the organization's interactions with other social institutions are managed and mediated. 7. Social indicators reflect the inputs, outputs and modes of impact an organization has on the environment. 8. Assurance on the reliability of sustainability information can be provided by an external auditor. 9. The most widely referenced or adopted sustainability reporting standard was the Global Reporting Initiative (GRI) Standards. 10. One example of Internal Motivation for sustainability reporting is to improve stakeholder communication.