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Study Resources (Accounting)

11.When two or more venturers combine their operations, resources and expertise to manufacture, market and distribute jointly a particular product this is likely to be categorised as a jointly controlled entity under AASB 11 Joint Arrangements. 12.As prescribed in AASB 11 Joint Arrangements, where a separate entity is formed the.
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1. The non-controlling interest in post-acquisition movement in reserves and post-acquisition profits is based on the combined sum of both direct non-controlling interest and indirect non-controlling interest.  2. The non-controlling interest in post-acquisition capital and reserves will be based on direct non-controlling interest.  3.Non-sequential acquisition is when a parent acquires.
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46.Discuss the accounting treatment for the current year's profit and loss earned by the subsidiary from the start of the financial period to the date the parent loses control of this subsidiary. 47.Explain how goodwill is determined in the case of a parent entity obtaining control over successive acquisitions of another.
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21.The body/bodies that have been proactive in providing environmental reporting guidelines/framework include:   A. the International Accounting Standards Board. B. the International Federation of Accountants. C. the Minerals Council of Australia. D. the International Oil and Gas Producers Board. 22.Factors that may influence perceptions of what the responsibility of an organisation should be include:   A. an individual's cultural background. B. the time period (generation).
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19.The 'spot rate' is:   A. the rate for delivery the next day of currencies to be exchanged. B. the exchange rate for immediate delivery of currencies to be exchanged. C. only used in relation to metals, that is, the spot metal price. D. can never be used in translating the accounts of foreign operations. 20.'Exchange rate' is:   A. not defined in.
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49.Discuss why it is necessary to differentiate between direct and indirect non-controlling interests in a group. 51.Describe a non-sequential acquisition and explain the process of consolidation for this type of business combination. 52.Discuss how it is possible for one entity to control another entity without any direct ownership interest. 1 .
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29.Under the translation method required by AASB 121, the approach to translating a foreign operation's accounts includes:    A. Non-monetary items included in the statement of financial position are translated at the rate current at reporting date. B. Equity at the date of investment is translated at the rate for the when the.
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76.How does the accounting treatment for qualifying monetary items differ from other foreign currency monetary items as prescribed under AASB 121 The Effects of Changes in Foreign Exchange Rates? 78.Discuss the situations in which the discontinuation of fair-value hedge accounting is to be done as provided for in AASB 139. .
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11.It is not possible for one entity to control another entity without any direct ownership interest. 12.In calculating indirect non-controlling interests, intragroup transactions need not be eliminated. 13.When a parent acquires its interest in an intermediate subsidiary after the intermediate subsidiary acquires an interest its own subsidiary, this is referred.
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32.AASB 121 requires that foreign currency monetary items outstanding at reporting date must be:   A. translated at the spot rate at the transaction date. B. reported at the forward-exchange rate based on the 90-day bank bill rate at that date. C. translated at the spot rate at reporting date. D. translated at the spot rate at settlement date. 33.Examples.
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41.The Shell Group of companies has developed a Social Responsibility Management system that may be described as:   A. an integrated financial reporting system designed to encourage internal decision making and reporting to incorporate the modified historical cost system's approach to environmental and social reporting into all management systems. B. an integrated means for consistently.
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62.Which of the following items is not within the scope of AASB 121 The Effects of Changes in Foreign Exchange Rates?   A. foreign currency denominated loans B. bank deposits in foreign currency C. investments in foreign operations D. foreign currency derivatives 63.Which of the following items is within the scope of AASB 121 The Effects of Changes in Foreign.
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74.Describe, with examples, the reasons why organisations would want to swap a loan denominated in one currency for another. 75.Discuss the accounting treatment required under AASB 121 The Effects of Changes in Foreign Exchange Rates when a reporting entity has a foreign currency monetary items at the reporting date. .
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32. The following is an extract from the non-controlling interest memorandum, used to calculate non-controlling interests. Both subsidiaries became members of the economic entity at the same time at the start of this current period. What is the parent's indirect equity (percentage) interest in Barbie Limited?   A. .
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21.The treatment of equity investments depends on a number of factors, including:    A. the date of purchase. B. whether the investee entity is in the life or general insurance industry. C. whether or not the investor has significant influence over the investee. D. whether the investee entity is in the life or general insurance.
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51.Global Reporting Initiative's (GRI) Sustainability Reporting Guidelines provide guidance to best practice reporting. These include defining the report quality to contain the following qualitative attributes:   A. reliability, relevance, comparability and understandability. B. inclusivity, materiality, accuracy and timeliness. C. reliability, clarity, balance, comparability, accuracy and timeliness. D. inclusivity, materiality, sustainability context and completeness 52.Global Reporting Initiative's (GRI) Sustainability Reporting Guidelines.
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25.Which of the following is not one of the stages used to determine non-controlling interest?   A. the non-controlling interest in the current period's profit or loss B. the non-controlling interest in share capital at the date of acquisition of the subsidiary by the parent entity C. the non-controlling interest in the goodwill at acquisition D. the non-controlling interest.
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48.Provide reasons for not recognising any gain or loss on subsequent changes in ownership after control has been achieved as outlined in the Basis for Conclusions that accompanied the release of IFRS 10 Consolidated Financial Statements. 49.Discuss what happens when a parent loses control over a subsidiary .
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15.Two common approaches to accounting for acquisition of additional shares in a subsidiary include:   A. the combined tranche method and the single-date method. B. the step-by-step method and the combined tranche method. C. the step-by-step method and the single-date method. D. the step-by-step method and the equity method. 16.Under the single-date method goodwill would be recognised:   A. at the point in.
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22.A foreign currency transaction shall be recorded on initial recognition in the:   A. presentation currency. B. local currency. C. foreign currency. D. functional currency. 23.There are two broad categories of foreign currency issues that arise in financial reporting. They are:   A. reporting purchase price parity and reporting foreign interest rate adjustments. B. accounting for foreign currency debt and offshore financing. C. accounting for foreign currency.
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69.Explain why some opponents of the accounting prescribed in AASB 121 object to the requirement that long-term receivables and payables be translated using the reporting date spot rates. 71.What is a forward rate agreement? Explain, with an example, how such an agreement can be used as a hedging instrument. .
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41.In determining the existence of 'significant influence', and considering voting power, consideration must be given to:    A. the voting power directly related to the voting rights attaching to the equity interests. B. the distribution of the balance of the voting power. C. excluding voting power that applies only in contingent circumstances. D. the voting.
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52.Common examples of qualifying assets are assets that result from development and construction activities in:   A. agriculture; power generation facilities; investment property. B. extractive industries; general insurance; investment property. C. agriculture; general insurance; investment property. D. extractive industries; power generation facilities; investment property. 53.AASB 123 Borrowing Costs defines a qualifying asset as an asset that:   A. takes a period of greater.
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46.Summarise the calculations for recognising non-controlling interests, where both direct and indirect interests exist, in relation to: (a) pre-acquisition share capital and reserves; (b) post-acquisition profits; and (c) post-acquisition movements in reserves. 47.A acquires a controlling interest of less than 100% ownership in B, who in turn acquires a controlling interest.
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1.Under the single-date method, the aggregate costs of the investments would be eliminated against the parent's share of capital and reserves at the date control of the subsidiary has been ultimately established and only one amount of goodwill (or bargain gain on purchase) is calculated.  2.AASB 10 Consolidated Financial Statements.
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1.Monetary items are units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. 2.Inventory is an example of a monetary item. 3.Management may exercise its judgment to determine the functional currency that most faithfully represents the economic.
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1.A specific Australian requirement for companies to provide environmental information in their annual reports is available in AASB 137 Provisions, Contingent Liabilities and Contingent Assets. 2.The qualitative characteristics identified in the Global Reporting Initiatives (GRI) Guidelines are similar with those provided in AASB 101 Presentation of Financial Statements. 3.The Parliamentary.
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31.Equity accounting is argued to provide:   A. a more accurate measure of value of the associate than the market value of the shares. B. an easier to understand measure of value than the lower of cost and net realisable value method. C. a better reflection of the performance and value of the associate company than the.
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11.'Greenwash' is a term applied to environmental reports that are considered to be for the purpose of public relations rather than a balanced report of environmental impacts. 12.According to Environment Australia, public environmental reporting is the communication of environmental position information by an organisation to its shareholders. 13.Freeman and Reed.
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39.Yarra Manufacturing Ltd is an Australian registered entity that has a branch in Singapore, Kew Ltd. Kew Ltd has a foreign operation in China. The foreign operation maintains its accounting records in Chinese yuan. The functional currency of the Chinese operation is Singapore dollar. The presentation currency of Kew Ltd.
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11.In selecting the appropriate foreign currency exchange rates to apply in translating foreign currency transactions, the accountant exercises an important element of judgment about whether the rates are overvaluing or undervaluing the reporting currency. 12.If the foreign currency exchange rate between Australia and the US was A$1.00 = US$0.55 on.
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31.AccountAbility's work is the AA1000 series of standard which is based on the following principle:    A. responsiveness. B. inclusivity. C. materiality. D. all of the given answers. 32.In Australia there is a specific requirement for reporting entities in the extractive industries to disclose:   A. information about the potential environmental impacts on protected species (as specified by.
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1.AASB 121 requires foreign currency transactions to be recorded on initial recognition in the local currency, by applying to the foreign currency amount the spot exchange rate between the local currency and the foreign currency at the date of the transaction. 2.AASB 121 requires foreign currency transactions to be recorded.
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