Question

68                Which of the following is classified as an equity instrument rather than a financial liability?
		a)	a financial liability	c)	a or b
		b)	an equity instrument	d)	neither a nor b
PAS #33- Earnings Per Share
69	PAS 33 is intended to apply to which of the following?
		a)	Financial institutions	c)	Publicly-listed entities
		b)	Non-publicly listed entities	d)	All entities using PFRSs

Which of the following does not result to a retrospective adjustment of prior-period EPS information?
a)	share dividends	c)	issuance of shares for cash
b)	share split	d)	issuance of stock rights

71                Entity is computing for its basic EPS, and has gathered the following information
			Loss for the year = (P800,000)
			Preferred dividends = P50,000
			Outstanding ordinary shares = 100,000
What is the basic earnings per share (EPS)?
		a)	-7.5                                                                                   c)    -8.5
		b)	7.5                                                                                    d) 8.5
PAS #34- Interim Financial Reporting
72	Which of the following is correct regarding the provisions of PAS 34?
		a)	All entities should publish quarterly interim reports
		b)	All publicly-listed entities should publish quarterly interim reports.
		c)	All publicly-listed entities should publish semi-annual interim reports.
		d)	PAS 34 does not require any entity to publish interim reports, and how often.

Answer 1

Answer to Question No 68 is   (C).

Because an equity instrument is classified as an equity instrument and a financial liability further can be reclassified as as an equity instrument, hence either (a) or (b) can be classified as an equity instrument.

Answer to Question No 69 is (D).

As per PAS 33 (Earnings per share), the standard applies to the entities whose ordinary shares or potential ordinary shares are publicly traded and it is to the option of non public entities to present EPS in their financials.

Answer to Question No 70 is (C).

Answer to Question No 71 is (C).

Basic EPS = [(800000)-50000]/100000 = -8.5

Answer to Question No 72 is (D).