QUESTION 1 Which one of the following alternatives is correct? A. The retirement of a partner from a partnership does not require the calculation of a new profit-sharing ratio but a simple reallocation of a retired partner's share. B. Since partnerships are not governed by a law requiring that IFRS be applied, it is not possible to introduce a standardised accounting procedure according to which changes in the ownership structure of partnerships ought to be recorded. C. Since a partnership is a legal entity, the ownership of a partnership is vested in the partners, and not in the partnership. O D. When a change in the ownership structure of a partnership occurs, a new partnership agreement is entered into by the new partners which causes the existing partnership to continue with its business operations without any interruptions. E. From the legal perspective, the activities of a dissolved and a subsequent correct? A. The retirement of a partner from a partnership does not require the calculation of a new profit-sharing ratio but a simple reallocation of a retired partner's share. B. Since partnerships are not governed by a law requiring that IFRS be applied, it is not possible to introduce a standardised accounting procedure according to which changes in the ownership structure of partnerships ought to be recorded. C. Since a partnership is a legal entity, the ownership of a partnership is vested in the partners, and not in the partnership. D. When a change in the ownership structure of a partnership occurs, a new partnership agreement is entered into by the new partners which causes the existing partnership to continue with its business operations without any interruptions. E. From the legal perspective, the activities of a dissolved and a subsequent new partnership are not separately accounted for and reported on. QUESTION 2 Which one of the following alternatives is correct? A. An existing goodwill account balance is transferred to the partners' capital accounts on admission of a new partner. B. The selling price of the partnership business is determined by the value of its assets. C. When recording the valuation adjustments, if the value of a liability is decreased, the valuation account credited with the amount of a decrease. OD. To ensure that compliance is followed, the financial statements of partnerships must be prepared according to IFRS. E. The fair value of the assets of a partnership is equal to the total equity of a partnership Reset Selection