Question 1

Which of the following is not a feature of the entity concept?

Accepted Answer

A) That the group is accounted for as a unit,and makes no distinction between shareholders 
B) That the Consolidated financial statement is prepared to be primarily of use to the shareholders of the parent entity 
C) Non-controlling interests are part of equity 
D) Net comprehensive income includes the net income attributable to all shareholders 
A) That the group is accounted for as a unit,and makes no distinction between shareholders 
B) That the Consolidated financial statement is prepared to be primarily of use to the shareholders of the parent entity 
C) Non-controlling interests are part of equity 
D) Net comprehensive income includes the net income attributable to all shareholders B

Question 2

IAS 28 and 31 both apply to Equity Accounting

Accepted Answer

A) True 
 B)False  True

Question 3

Which is NOT true about pooling of interests accounting for business combinations?

Accepted Answer

A) IFRS 3 which replaced IAS 22 confirmed use of pooling of interests for true mergers 
B) The assets and liabilities of entities are combined on the basis of their book values 
C) It was identified by IAS 22 
D) It is required in a situation of ' uniting of interests' 
A) IFRS 3 which replaced IAS 22 confirmed use of pooling of interests for true mergers 
B) The assets and liabilities of entities are combined on the basis of their book values 
C) It was identified by IAS 22 
D) It is required in a situation of ' uniting of interests' A

Question 4

IFRS 3 is more recent than IAS 22

Accepted Answer

A) True 
 B)False

Question 5

Which of these is NOT a difference between carry over accounting and acquisition accounting?

Accepted Answer

A) Carry over accounting requires an acquisition date,acquisition accounting doesn't 
B) Carry over accounting does not recognise goodwill,acquisition accounting does 
C) Carry over accounting does not require revaluation of items at fair value,but acquisition accounting does 
D) Carry over accounting involves combining items at book value,whereas acquisition accounting requires combining at fair values. 
A) Carry over accounting requires an acquisition date,acquisition accounting doesn't 
B) Carry over accounting does not recognise goodwill,acquisition accounting does 
C) Carry over accounting does not require revaluation of items at fair value,but acquisition accounting does 
D) Carry over accounting involves combining items at book value,whereas acquisition accounting requires combining at fair values.

Question 6

The IFRS allows use of all alternative concepts of accounting for business combinations

Accepted Answer

A) True 
 B)False

Question 7

Which of these is not an alternative to acquisition accounting?

Accepted Answer

A) Entity accounting 
B) Pooling of interests accounting 
C) Equity accounting 
D) Carry over accounting 
A) Entity accounting 
B) Pooling of interests accounting 
C) Equity accounting 
D) Carry over accounting

Question 8

An advantage of pooling of interests accounting is that it provides superior quality information when compared to acquisition acounting

Accepted Answer

A) True 
 B)False

Question 9

IFRS 3 applies the parent concept when preparing consolidated financial statements

Accepted Answer

A) True 
 B)False

Question 10

Which is NOT true about proportional consolidation?

Accepted Answer

A) There is no non- controlling interest 
B) It is allowed under IFRS 11 for a parent - subsidiary relationship 
C) it is not allowed under IFRS 11 for a parent- subsidiary relationship 
D) It is a traditional option in accounting for joint ventures. 
A) There is no non- controlling interest 
B) It is allowed under IFRS 11 for a parent - subsidiary relationship 
C) it is not allowed under IFRS 11 for a parent- subsidiary relationship 
D) It is a traditional option in accounting for joint ventures.

Exam 28: Alternative Concepts on Consolidation and Business Combinations

Which of the following is not a feature of the entity concept?

IAS 28 and 31 both apply to Equity Accounting

Which is NOT true about pooling of interests accounting for business combinations?

IFRS 3 is more recent than IAS 22

Which of these is NOT a difference between carry over accounting and acquisition accounting?

The IFRS allows use of all alternative concepts of accounting for business combinations

Which of these is not an alternative to acquisition accounting?

An advantage of pooling of interests accounting is that it provides superior quality information when compared to acquisition acounting

IFRS 3 applies the parent concept when preparing consolidated financial statements

Which is NOT true about proportional consolidation?

Basics of Financial Reporting

International Accounting Differences

The Process of Harmonization

Economic Valuation Concepts

Current Entry Value

Current Exit Value and Mixed Values

Current Purchasing Power Accounting

Fair Values

Accounting Theory and Conceptual Frameworks

Structure of Published Financial Statements

Corporate Governance, corporate Social Responsibility and Ethics

Basics of Interpretation of Financial Statements

Fixed Non-Currenttangible Assets

Intangible Assets

Impairment and Disposal of Assets

Leases

Inventories and Construction Contracts

Accounting for Financial Instruments

Revenue

Provisions, contingent Liabilities and Contingent Assets

Income Taxes

Employee Benefits

Changing Prices and Hyperinflationary Economies

Statements of Cash Flows

Disclosure Issues

Business Combinations

Consolidated Financial Statements

Accounting for Associates, joint Arrangements and Related Party Disclosures

Foreign Currency Translation

Interpretation of Financial Statements

Techniques of Financial Analysis

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