10. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? a.   Reclassification   of   financial   assets   out   of   the amortized cost measurement category to FVTPL.  b.   Reclassification   of   financial   assets   out   of   the FVTOCI measurement category to FVTPL. c.   Reclassification of financial assets out of the FVTPL measurement category. d.   None of these. 11. In  accordance  with  PAS  1,  which  of  the  following expenses  need  not  be  presented  separately  in  the profit or loss section or the statement of profit or loss?  a.   Finance costs b.   Share of loss of associates  c.   Tax expense d.   Depreciation expense

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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10. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss?
a.   Reclassification   of   financial   assets   out   of   the amortized cost measurement category to FVTPL. 

b.   Reclassification   of   financial   assets   out   of   the
FVTOCI measurement category to FVTPL.
c.   Reclassification of financial assets out of the FVTPL
measurement category.

d.   None of these.

11. In  accordance  with  PAS  1,  which  of  the  following expenses  need  not  be  presented  separately  in  the profit or loss section or the statement of profit or loss? 

a.   Finance costs
b.   Share of loss of associates 

c.   Tax expense
d.   Depreciation expense

12. You are preparing the income statement of Anonymous Company for the year ended December 31, 2020.  You determine  that  company's  income  from  continuing operations before income taxes is P2,400,000.  At this point, you are considering the proper treatment of the items   listed   below.      Unless   otherwise   indicated, assume  that  none  of  the  items  listed  are  included  in the P2,400,000 income figure.
a.   Because   of   changes   in   technology,   inventory costing  P100,000  was  written  off  as  obsolete  in
2020.   The company had never recorded this type
of loss before.
b.   An  unusual  earthquake  damaged  the  company's plant  on  January  10,  2021  resulting  in  a  loss  to
Anonymous of P400,000.
c.   A loss of P360,000 was sustained on April 5, 2020 as  a  result  of  typhoon  damage  to  the  company's warehouse  in  Davao.    Typhoons  rarely  occur  in that area.
d.   Prior  to  2020,  Anonymous  used  an  accelerated depreciation  method  for  its  plant  equipment.   In
2020,  Anonymous  changed  to  the  straight-line method  for  previously  acquired  equipment  and new  acquisitions.    At  December  31,  2019,  the carrying    amount    of    plant    equipment    was P7,000,000.     If   the   straight-line   method   had previously been used, the carrying amount would have been P7,500,000 on December 31, 2019.
e.   In   2020,   Anonymous   changed   its   method   of accounting for inventory from direct costing, which was used in previous years, to absorption costing.
The 2020 ending inventory has been recorded on the  absorption  cost  basis,  but  no  adjustment  has been  made  to  beginning  inventory,  which  has  a total  cost  of  P2,300,000,  made  up  of  P1,400,000 direct  materials  and  P900,000  direct  labor.   The manufacturing overhead application rate is 75% of direct labor cost.
f.    On  July  1,  2020,  Anonymous  paid  bondholders P1,200,000  to  retire  its  bonds  payable  with  a carrying amount of P950,000.

How   much   should   be   reported   as   income   from continuing operations before income taxes for the year ended December 31, 2020?
a.   P1,690,000                           

b.   P1,115,000  

c.   P1,290,000                             

d.   P1,015,000

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