Question

The following are not business combination transactions of entities under common control The parent company exchanges...

  1. The following are not business combination transactions of entities under common control
  1. The parent company exchanges its ownership in a portion of the net assets of its subsidiary for additional shares issued by another subsidiary.
  2. The parent company transfers a portion of the net assets of its subsidiary to the assets of the parent
  3. The parent company purchases the net assets or part of the ownership rights of non-controlling shareholders
  4. The parent company transfers part of its ownership rights in one subsidiary to another subsidiary
  1. The following factors are not relevant in determining the entity's functional currency
  1. The currency in which funding is generated
  2. The currency in which funding is generated
  3. The currency in which the proceeds from operating activities are held
  4. Currency that affects the entity's costs
  5. The most accepted international currency for trading
  1. In a joint arrangement, A has 50% of the voting rights, B has 30% and C has 20%. The arrangement provides that at least 75% of the voting rights are paid to make decisions about relevant activities. The following entities have control over the joint arrangement
  1. B
  2. A
  3. C
  4. A and B
  1. An entity imports 4 million Euros worth of merchandise from a European country. The entity's functional currency is US Dollars. Goods ordered on 31 March 2020, shipped on 7 April 2020, and received on 8 April 2020. Entity receives invoice on 28 May 2020. Terms of sale are FOB destination. The exchange rate used to record the transaction is the rate on the date
  1. March 31, 2020
  2. 7 April 2020
  3. 28 May 2020
  4. 8 April 2020
  1. Goodwill arising in the acquisition of associates
  1. Tested for impairment separately from other assets
  2. Charged in profit or loss in each reporting period
  3. Not recognized separately from the carrying amount of the investment
  4. Amortized in each reporting period including the interim period
  1. In separate financial statements, investments in subsidiaries that are not classified as held for sale are recorded in
  1. Using the equity method or PSAK 71 / IFRS 9
  2. Cost or equity method
  3. In accordance with PSAK 71 / IFRS 9 or PSAK 58 / IFRS 5
  4. Cost or in accordance with PSAK 71 / IFRS 9
  1. An investment entity is an entity that is
  1. Aim to develop a product together with the investee
  2. Have a plan to invest in unlimited
  3. Can have a strategy for investing in more than one investee
  4. Transact with investees
  1. The following statements are true
  1. Separate financial statements are the financial statements of a business group presented as a single economic entity
  2. Separate financial statements can only be presented as additional information in the consolidated statements
  3. Separate financial statements must be presented to record the investment in the subsidiary at cost
  4. Separate financial reports can be presented as general purpose financial reports
  1. The building was purchased on December 31, 2017 for MU 20 million. On that date, the consumer price index in the country was 60.1. As of December 31, 2019, the consumer price index ballooned to 240.4. What was the carrying value of the building as of December 31, 2019?
  1. MU 4,808 million
  2. MU 1,202 million
  3. MU 80 million
  4. MU 20 million
  1. A trading entity in Indonesia. After a while, the entity expanded and exported its products to Singapore. Business is conducted through a subsidiary in Singapore. The subsidiary is an extension of the entity's business and the entity's directors are also directors of the subsidiary. The functional currency of the subsidiary is.
  1. Rupiah
  2. Rupiah or Singapore Dollar
  3. Singapore Dollar
  4. Rupiah and Singapore Dollar
  1. A structured entity is an entity
  1. With broad and well-defined goals
  2. Who receive funding from third parties
  3. Which has various activities
  4. With the determination of controllers not dominated by voting rights
  1. PSAK 15 / IAS 28 does not require the application of the equity method if the associate acquired will be held for sale within a specified period of time. This time period is
  1. Six months
  2. Twelve months
  3. In the near future
  4. Two years
  1. The following assets or liabilities are non-monetary assets or liabilities
  1. Accruals and other payables
  2. Tax debt
  3. Accounts receivable
  4. Prepaid expense
  1. Joint ventures recognize its interest in joint ventures as
  1. Net assets, which include their share of any assets that are jointly owned
  2. Net assets that include all assets that are jointly owned
  3. Investments are accounted for using the equity method
  4. Investments are accounted for using the proportional consolidation method
  1. An Indonesian entity generates and receives cash from sales denominated in Singapore Dollars. The main expenses consist of raw materials which are also obtained in Singapore Dollars, however salary expenses are paid in Indonesian Rupiah. Which of the following statements is true?
  1. The entity's functional currency is Indonesian Rupiah
  2. The entity's functional currency may be selected Singapore Dollar or Rupiah
  3. The entity's functional currency is the Singapore dollar
  4. The entity's functional currency is US Dollars
  1. The difference between the consideration transferred and the carrying amount of the business combination transactions of entities under common control is recognized in
  1. Liabilities
  2. Asset
  3. Profit and loss
  4. Equity

Homework Answers

Answer #1

C...The parent company purchases the net assets or part of the ownership rights of non-controlling shareholder

E....The most accepted international currency for trading

D....A and B

C....28 May 2020

A....Tested for impairment separately from other assets

D...Cost or in accordance with PSAK 71 / IFRS 9

C....Can have a strategy for investing in more than one investee

D.....Separate financial reports can be presented as general purpose financial reports

C...MU 80 million

A...Rupiah

A...With broad and well-defined goals

B...Twelve months

A...Accruals and other payables

A...Net assets, which include their share of any assets that are jointly owned

C...The entity's functional currency is the Singapore dollar

C....Profit and loss

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