Info
Warning
Danger

Study Resources (Accounting)

34.Which consolidation concept mainly underlies the approach adopted in AASB 10?   A. proprietary concept B. accrual concept C. entity concept D. parent-entity concept 35.AASB 10 defines control as:   A. governing the financial, operating and sustainability policies of an entity so as to benefit from its activities. B. the capacity of an entity to dominate the decision making of another entity by virtue of.
3 Views
View Answer
74.Discuss the performance conditions utilised in the compensation plans for key management personnel. 75.Discuss the main features of the recently reissued policy statement on director and executive pay by the Australian Shareholders' Association. 77.Discuss the objective of AASB 124 Related Party Disclosures. .
7 Views
View Answer
54.Which of the following statements is not correct?   A. A group comprises a parent and all of its subsidiaries. B. Consolidated financial statements are financial statements of a group of entities presented as if that group was acting as a single economic entity. C. A subsidiary is an entity that is controlled by another entity. D. A parent.
5 Views
View Answer
41.Disclosure information under AASB 124 is aggregated by:   A. forex currency base, size of the transaction and class of related party. B. size of the transaction, type of transaction and frequency of the transaction. C. type of transaction, nature of terms and conditions and class of related party. D. nature of terms and conditions, class of related party.
5 Views
View Answer
1.AASB 10 Consolidated and Separate Financial Statements prescribes that non-controlling interests be presented in the consolidated statement of financial position as a liability. 2.Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit.
13 Views
View Answer
21.How is a related party defined for accounting purposes?   A. Parties are considered to be related if they have a regular set of transactions and a history of trading together. B. Parties are deemed to be related if they are a financial institution that has regular loan business with the entity. C. Related parties are those.
4 Views
View Answer
61.In accordance with AASB 8 Operating Segments, which of the following statements is incorrect?   A. The standard requires an entity to report financial and descriptive information about its reportable segments. B. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria. C. The standard requires an entity to report a measure of.
4 Views
View Answer
24.One important aim of releasing AAS 24 in 1991 and amendments made to The Corporations Law in the same year was to:   A. require parent entities to consolidate companies that they controlled into one set of financial statements for the first time. B. change the treatment of non-controlling interests to be reflected in the.
2 Views
View Answer
72.What are the effects of discontinued operations in the reporting of earnings per share? 73.If an entity has both convertible preference shares and convertible notes outstanding at year-end paying the same amount of cash payment and convertible to equal numbers of ordinary shares, which security will cause the greater reduction in.
4 Views
View Answer
77.Discuss, and provide an example of the 'partition' effect that existed under the previous Corporations Law, prior to 1991. 78.Briefly outline the three main concepts of consolidation and how they differ. Identify the concept used in Australia and the implications this has for the consolidation accounting process. .
6 Views
View Answer
11.AASB 133 requires entities to disclose earnings per share and diluted earnings per share in the notes to the accounts. 12.AASB 133 requires an entity to disclose basic earnings per share for discontinued operations on the face of the statement of comprehensive income. 13.AASB 133 adopts a substance over form.
9 Views
View Answer
21.Which of the following entities is not in the scope of AASB 133 Earnings per Share?   A. partnerships B. reporting entities in the process of listing on the Australian Stock Exchange C. entities that voluntarily disclose earnings per share D. reporting entities with listed ordinary shares 22.The earnings per share figure is likely to be of interest to shareholders.
5 Views
View Answer
1.As prescribed in AASB 3 Business Combinations, when an acquirer makes a bargain purchase, the acquirer recognises the excess as goodwill on acquisition date.  2.When an acquirer makes a bargain purchase in a business combination, the excess that remains is recognised in profit or loss of the acquirer on acquisition.
12 Views
View Answer
19.Examples of intragroup transactions include:   A. dividends payable to group members. B. the payment of taxation. C. the recognition of minority interests. D. the sale of inventories to external parties. 20.Intragroup transactions that are to be eliminated in the consolidated accounts include:   A. inter-entity loans. B. inter-entity sales of non-current assets. C. the payment of management fees to a member of the group. D. all of the.
5 Views
View Answer
84.Discuss the treatment as required in AASB 10 Consolidated Financial Statements for potential voting rights when considering whether one entity controls another entity. 86.AASB 3 requires entities to account for business combinations using the acquisition method. Describe the steps required to implement the acquisition method. 87.Discuss how the subsidiary's post-acquisition earnings are.
5 Views
View Answer
31.The commentary to AASB 124 identifies factors that would normally indicate the existence of control. These factors include:   A. the capacity to withdraw a material amount of loan capital. B. the power to dominate the composition of the board of directors or governing body. C. the authority to determine the outcome of significant local council decisions.
6 Views
View Answer
71.What is the rationale for disclosing related-party transactions with key management personnel regardless of its materiality? 72.The Business Council of Australia (BCA) is opposed to the extensive disclosure requirements of directors' and executives' remuneration. Discuss the unintended consequences put forward by BCA in their submission to the Parliamentary Joint Committee on.
6 Views
View Answer
59.Discuss the reasoning behind the elimination all dividends receivable/payable between entities within the group during the consolidation process. 60.Explain why gains recognised on sale of assets between entities within a group are reversed on consolidation. .
6 Views
View Answer
64.When group members do not apply the same accounting methods, the consolidation process requires which of the following to be done?   A. All group members must change their accounting policies to be consistent. B. Adjustments must be made on consolidation to remove the effects of the different policies. C. Two sets of consolidated accounts need to.
3 Views
View Answer
1.AASB 10 Consolidated Financial Statements prescribes that intragroup balances, transactions, income and expenses be eliminated in full on consolidation. This requirement is consistent with the parent entity concept of consolidation.  2.AASB 10 Consolidated Financial Statements prescribes that intragroup balances, transactions, income and expenses be eliminated in full on consolidation even.
11 Views
View Answer
39.Which of the following statements describes the reasons why tax adjustments may be required when eliminating the unrealised profit from intragroup sales of inventory?    A. Tax is paid on a group perspective and therefore one taxable income figure must be derived for the group. B. Tax will be adjusted at the request.
6 Views
View Answer
70.What is the rationale for including a final threshold test where entities are required to include in their reportable segment at least 75 per cent of the entity's total external revenues? What action must an entity take if this threshold is not achieved? 74.Discuss the concerns raised about competitive disadvantage to.
4 Views
View Answer
1.Disclosing entities are within the scope of AASB 124 Related Party Disclosures. 2.Disclosure of related-party transactions is required because knowledge of related-party transactions, outstanding balances and relationships may affect assessments of an entity's operations by users of financial reports. 3.The Corporations Act requires shareholder approval for any agreement to pay.
14 Views
View Answer
15.Where the parent entity holds less than 100 per cent interest in a subsidiary, AASB 10 requires the remaining shareholders' interests in what items to be disclosed?   A. the subsidiary's share capital and reserves B. the subsidiary's profit or loss C. the subsidiary's current and non-current assets D. the subsidiary's share capital and reserves and the subsidiary's profit.
22 Views
View Answer
11.A subsidiary is an entity that is controlled by a parent entity. 12.The consolidation concept adopted in AASB 10 is to include all the assets and liabilities of the parent entity and subsidiaries in the consolidation and to treat non-controlling interests as part of the equity of the group. 13.Non-controlling.
5 Views
View Answer
51.Which of the following disclosures on key management personnel is/are required in AASB 124 for disclosing entities?   A. name of the person B. position held C. qualification(s) of the person D. name of the person and position held 52.AASB 124 requires disclosure of:   A. all material related-party transactions only. B. all material transactions with directors and its close family members. C. all material related-party transactions.
7 Views
View Answer
74.To maximise the dilution of basic earnings per share, discuss the requirements of AASB 133 Earnings per Share in determining whether potential ordinary shares are dilutive or antidilutive. 75.Discuss what is referred to in AASB 133 Earnings per Share as antidilutive security and illustrate a potential ordinary share that is considered.
6 Views
View Answer
51.Consider the following list of operating segments and segment results for the current reporting period relating to Legolas Ltd, and answer the question below. What is the minimum loss (rounded to the nearest $1000) that the publishing segment could have made for that segment to be considered.
4 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Thank You For Registering

Please Vreify Your Email Address

Resend Link
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!