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PAS34 Questio N& Answer!: Welcome To..

This document contains a quiz on interim financial reporting standards. It includes 8 multiple choice questions about requirements for interim financial reports, such as how soon after the end of an interim period a publicly traded entity must provide an interim financial report, and which accounting principles interim financial reports must conform with. The document provides the questions, multiple choice answers, and reveals the correct answer for each question.

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1K views18 pages

PAS34 Questio N& Answer!: Welcome To..

This document contains a quiz on interim financial reporting standards. It includes 8 multiple choice questions about requirements for interim financial reports, such as how soon after the end of an interim period a publicly traded entity must provide an interim financial report, and which accounting principles interim financial reports must conform with. The document provides the questions, multiple choice answers, and reveals the correct answer for each question.

Uploaded by

Faker Mejia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Welcome to...

PAS34
QUESTIO
N&
ANSWER!
SLIDESMANIA
#1
Publicly traded entities are encouraged to
provide interim financial reports

A. At least at the end of the half year and


within 60 days of the end of the interim
period.
B. Within a month of the half year-end.
C. On a quarterly basis
D. Whenever the entity wishes.
SLIDESMANIA
we r
A
ans
SLIDESMANIA
#2
Which of the following statements is correct concerning interim financial
reporting?
I. PAS34 mandates which entities are required to publish interim financial
reports, how frequently, or how soon after the end of an interim period.

II. Entities that provide interim financial reports in conformity with


generally accepted accounting principles shall conform to the
recognition, measurement and disclosure principles set out in the
standard.

A. I only C. Both I and II


B. II only D. Neither I and II
SLIDESMANIA
we r
B
ans
SLIDESMANIA
#3
For interim reporting, an inventory loss from a market
decline in the second quarter shall be recognized as a
loss

A. In the fourth quarter.


B. Proportionately in each of the second, third and
fourth quarters
C. Proportionately in each of the first, third and
fourth quarters
D. In the second quarter.
SLIDESMANIA
we r
D
ans
SLIDESMANIA
#4
If an entity does not prepare interim financial reports

A. The year-end financial statements are deemed not


to comply with PFRS.
B. The year-end financial statements’ compliance with
PFRS is not affected.
C. The year-end financial statements will not be
acceptable under local legislation
D. Interim financial reports shall be included in the
year-end financial statements.
SLIDESMANIA
we r
B
ans
SLIDESMANIA
#5
Which of the following statements in relation to an
interim financial reports is true?

I. An interim financial reports may consist of a


complete set of financial statements.
II. An interim financial report may consist of a
condensed set of financial statements

A. I only C. Both I and II


B. II only D. Neither I and II
SLIDESMANIA
we r
C
ans
SLIDESMANIA
#6 The terms and conditions of employment with Pauline Company
include entitlement to share in the staff bonus system, under which
5% of the profit for the year before charging the bonus is
allocated to the bonus pool, provided the annual profit exceeds
P50,000,000.

The profit before accrual of any bonus for the first half of 2010
amounts to P40,000,000 and latest estimate of the profit before
accrual of any bonus for the year as a whole is P60,000,000.

How much should be recognized in profit or loss in respect of the


staff bonus for the half year ended June 30,2010?

A. 1,500,000
B. 3,000,000
C. 2,000,000
SLIDESMANIA

D. 0
Answer: C
Bonus for half year ended June 30, 2010

= (5% x 40,000,000)
= 2,000,000
SLIDESMANIA
#7 Farr Company had the following transactions during the quarter
ended March 31, 2010.

Loss from typhoon 700,000


Payment of fire insurance premium
for calendar year 2010 100,000

What amount should be included in the income statement for the


quarter ended March 31, 20120?

Casualty Loss Insurance Expense


A. 700,000 100,000
B. 700,000 25,000
C. 175,000 25,000
D. 0 100,000
SLIDESMANIA
Answer: B
Casualty Loss 700,000

Insurance Expense
(100,000/4) 25,000
SLIDESMANIA
#8 Wilma Company experienced a P500,000 decline in the market
value of its inventory at the end of the first quarter. Wilma had
expected this decline to reverse in the second quarter, and in
fact, the second quarter recovery exceeded the previous decline
by P100,000. What amount of gain or loss should Wilma report in
its interim statements for the first and second quarters?

First Quarter Second Quarter


A. 500,000 loss 500,000 gain
B. 500,000 loss 600,000 gain
C. 500,000 loss 100,000 gain
D. 0 0
SLIDESMANIA
Answer: A
SLIDESMANIA
THANK YOU
FOR
PARTICIPATIN
G!
SLIDESMANIA

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