Please check if my answers are correct.

Question 1 In a business combination where shares of stocks are issued in exchange of shares of stocks of another company, such business combination is commonly known as stock acquisition. Response: True .45\" Edit' Question 2 E If control is obtained through the purchase of shares of stocks of an investee, Goodwill or Gain on Acquisition are presented in the nancial statements ofthe _ (acquirer; acquiree, group). Response: Group // Edit _ Question 3 If a rm purchased shares of stocks which resulted to control, and there is a control premium included as part ofthe payment, the implied value of the subsidiary is the consideration transferred divided by the percentage of controlling interest. Response: False // Edit Question 4 EE When the parents interest In the subsidiary Is greater than consideration transferred to its former owners the difference IS treated as a gain on acquisition in the books of the parent. Response: True \Question 7 At every year and investment in subsidiary account is eliminated in the books of the parent. Response: True (/1 Edit Question 8 ii If Push down accounting is used by the parent, by adjusting the carrying amount of its assets and liabilities to its fair value, there's no need to repeatedly perform this procedure in the consolidation process at every reporting period. Response: True 5% Edit ' Question 9 If the accounting policies of both parent and subsidiary are different, the subsidiary is obligated to change its accounting policy to that of the parent. Response: False (1/ Edit Question 10 E} Total shareholders equity of the combined entity under asset acquisition is _ (a) similar to (b) greater than {0) less thanthat of business combination by stock acquisition it acquired shares of stocks represents all outstanding voting shares. ResponsezB ,4\" Edit-l 1 Question 11 A gain or acquisition and goodwill can be recognized in the same business combination. Response: True ,. ix Edit | Question 12 % Equity method of accounting for investment is mandatory in the books of the investor if ownership interest over the investee is _ (a) less than 20 (b) 20 to 50 (c) more than 50 percent. Write only the letter of the correct answer Response:B 1% Edit l Question 13 Only passive investments use cost model in the books of the investor, where investee's dividend declaration and operating result has no effect on its carrying amount. Response: True (,4? Edit- Question 14 Parent' s control capacity to control does not hinge alone on the 50+1 percent rule. PAS/1A8 provides that an investor might still have power or de facto control even if acquisition is 50% or less. Response: True ,/ Edit Question 15 E Full goodwill approach simply means that goodwill will be recognized only forthe (a) parent (b) parent and subsidiary, (0) parent and non-con trolling interest, (09 non- controlling interest) . Write only the letter of the correct answer Response: C y Edit Question 16 E In a business combination through the acquisition of shares of stock, control is always obtained when ownership is more than 50% of the outstanding voting shares. Response: False Edit Question 17 IFRS 10 provides that consolidated financial statements should be prepared by a parent to consolidate its investments in subsidiaries, such consolidation should be accounted for under the _ (equity, cost) method. Response: Equity Edit Question 18 E If the net assets of the subsidiary has a net decrease in fair value compared to its carrying amounts, such amount will be deducted from the allocated excess to arrive at goodwill. Response: False Edit Question 19 Noncontrolling interest shall not appear in the separate financial statements of both parent and subsidiaries. Response: TrueQuestion 20 Company A owns 60% interest in the outstanding shares of Company B. If Company B is owned by Companies A, C, D and E. Based on the same information about Company A, in the consolidated financial statements, the noncontrolling interest consists of Company(ies) _ (a) B (b) C and D (c) C, D and E (d) A. Write the only the letter of the correct answer Response: C Edit Question 21 Company A owns 60% interest in the outstanding shares of Company B. If Company B is owned by Companies A, C, D and E. Based on the same information about Company A, in the consolidated financial statements, the contributed capital in the shareholders' equity section would include only that of Company(ies) (a) B (b) C and D (c) C, D and E (d) A. Write only the letter of the correct answer_ Response: D Edit Question 22 The preparation of consolidated financial statement is based on control. Response: FalseQuestion 22 The preparation of consolidated financial statement is based on control. Response: False Edit Question 23 The purpose of consolidating the financial statements of the parent and its subsidiaries is to present their financial information as if they are one business entity. Response: True Edit Question 24 Ability to affect return is not an element of control. Response: False Edit Question 25 A business combination may involve two or more acquirers, in such a case consolidated financial statements shall be prepared for each parent. Response: True Edit