Answer only

Question 151 pts

All of the following are true with regard to impairment testing of long-lived assets except:

Group of answer choices

If either the fair value less cost to sell or the value-in-use is higher than the carrying amount, no impairment loss will be recorded.

The impairment test compares the asset's carrying value with the lower of its fair value less cost to sell and its value-in-use.

If the recoverable amount is lower than the carrying value, an impairment loss will be reported on the period's income statement.

If impairment indicators are present, the company must conduct an impairment test.

Question 161 pts

A liability shall be classified as a current liability when it satisfies any of the following criteria, except

Group of answer choices

The entity has an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period.

It is expected to be settled in the entity's normal operating cycle.

It is due to be settled within twelve months after the end of the reporting period.

It is primarily held for the purpose of being traded.

Question 171 pts

For a share-based payment transaction in which the terms of the arrangement provide an entity with the choice of whether to settle in cash or by issuing equity instruments, the entity shall determine whether it has ____________ to settle in cash and account for the share-based payment transaction accordingly.

Group of answer choices

A present obligation

A deferred liability

A future obligation

A contingent liability

Question 181 pts

Held for trading is a financial liability that:

Group of answer choices

On initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking

Any of the choices

Is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.

Is incurred principally for the purpose repurchasing it in the near term.

Question 191 pts

Which of the following information shall be disclosed in relation to biological asset and agricultural produce?

Group of answer choices

Separate disclosure of the gain or loss relating to biological asset and agricultural produce.

There is no requirement in the standard to disclose separately any gain or loss.

The aggregate gain or loss arising on the initial recognition of biological asset and agricultural produce and from the change in fair value less cost of disposal of biological asset.

The total gain or loss from biological asset, agricultural produce, and from changes in fair value less cost of disposal of biological asset.

Question 201 pts

IFRS 2 applies to share-based payment transactions in which an entity __________ goods or services

Group of answer choices

B. Receives

A. Acquires

C. Transfers

D. Delivers

A and B

Question 211 pts

In a review of its provision for the year ended 31 March 20x5, Culpa's assistant accountant has suggested the following accounting treatments:

I.Based on past experience, a P20,000 provision for unforeseen liabilities arising after the year end.

II.The partial reversal (as a credit to the statement of profit or loss) of the accumulated depreciation provision on an item of plant because the estimate of its remaining useful life has been increased by three years.

III.Providing P1 million for deferred tax at 25% relating to a P4 million revaluation of property during March 20x5 even though Culpa has no intention of selling the property in the near future.

Which of the above suggested treatments of provisions is/are permitted by IFRS Standards?

Group of answer choices

III only

I and II

II and III

I only

Question 221 pts

A building contractor decides to construct an office building to be occupied by his own staff. Tangible non-current assets are initially measured at cost. Which TWO of the following expenses incurred by the building contractor cannot be included as a part of the cost of the office building?

A. Interest incurred on a specific loan taken out to pay for the construction of the new offices.

B. Direct building labor costs.

C. A proportion of the contractor's general administration costs.

D. Hire of plant and machinery for use on the office building site.

E. Additional design work caused by initial design errors.

F. Delivery costs in getting the raw onto site.

Group of answer choices

E and F

A and B

C and E

B and C

Question 231 pts

A competitor has sued an entity for unauthorized use of its patented technology. The amount that the entity may be required to pay to the competitor if the competitor succeeds in the lawsuit is determinable with reliability, and according to the legal counsel it is less than probable (but more than remote) that an outflow of the resources would be needed to meet the The entity that was sued should at year end:

Group of answer choices

Make a disclosure of the possible obligation in footnotes to the financial statements.

Recognize a provision for this possible obligation.

Set aside, as an appropriation, a contingency reserve, an amount based on the best estimate of the possible liability.

Make no provision or disclosure and wait until the lawsuit is finally decided and then expense the amount paid on settlement, if any.

Question 241 pts

In respect of loans classified, as current liabilities, which of the following events that occur between the end of the reporting period and the date the financial statements are authorized for issue, should be disclosed as non-adjusting events in accordance with PAS 10?

Group of answer choices

a. Refinancing on a long-term basis.

c. The granting by the lender of a period of grace to rectify a breach of a long-term loan arrangement ending at least twelve months after the reporting period.

a, b and c

b. Rectification of a breach of a long-term loan arrangement.

Question 251 pts

Which of the following factors shall not be taken into account when applying option pricing models?

Group of answer choices

Expected volatility of the share price

Risk-free interest rate for the life of the option

Life of the option

Vesting conditions

Dividends expected on the shares