15. If an entity gives a product warranty that has been issued directly by a manufacturer, dealer or retailer, which IFRS is likely to cover this warranty? a. IAS 32 Financial instruments - Presentation b. IAS 37 Provisions, contingent liabilities and contingent assets c. IFRS 17 Insurance contracts d. IFRS 9 Financial instruments 16. IFRS 17 provides that insurance contracts should a. Be covered by IAS 32 and IFRS 9 b. Comply with all existing IFRS c. Generally continue to be subject to existing accounting policies. d. Comply with the IFRS Framework document. 17. An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this constitutes a loan by the cedant that will be repaid in the future. IFRS 17 requires that a. Each payment by the cedant is accounted for as loan advance and as payment for insurance cover. b. The premium is not accounted for. c. The premium paid is treated purely as a loan. d. The insurance premium is accounted for a revenue. 18. An entity should apply IFRS 17 to which of the following? a. Contingent consideration receiable in business combination. b. Reinsurance contracts issued by the entity. c. Product warrantis issued by an entity which is manufacturer. d. Employer's asset and liabilities under employment benefit plans. 19. A reinsurance contract is a. An insurance contract issued by one insurer to compensate another insurer for losses on one or more contract issued by the latter. b. All of these reinsurance contract. c. A financial guaratne contract d. A direct insurance contract. 20. The cedant is a. The guaranteed benefit under a reinsurance contract. b. The insurer under a reinsurance contract. c. The policyholder under a reinsurance contract. d. The discretionary participation feature of an insurance contract. Consignment sales Problem 1 On October 20, 2016, Abrahan company consigned 40 freezers to Holden Company costing P14,000 each for sale of P20,000 each and paid P16,000 in transportation costs. On December 30, 2016, Holden reported the sale of 10 freezers and remitted P170,000. The remittance was net of the agreed 15% commission. Q1: What amount should Grimm recognize as consignment sales revenue for 2016? Problem 2 The following information was derived from the 2016 accounting records of SHARK Co.: SHARK's Central Warehouse SHARK's Goods Held by Consignees Beginning P55,000 P6,000 Inventory Purchases 240,000 30,000 Freight-in 5,000 Transportation to 2,500 consignees Freight-out 4,000 Ending inventory 10,000 Q2: What is SHARK's 2016 cost of sales?
15. If an entity gives a product warranty that has been issued directly by a manufacturer, dealer or retailer, which IFRS is likely to cover this warranty?
a. IAS 32 Financial instruments - Presentation
b. IAS 37 Provisions,
c. IFRS 17 Insurance contracts
d. IFRS 9 Financial instruments
16. IFRS 17 provides that insurance contracts should
a. Be covered by IAS 32 and IFRS 9
b. Comply with all existing IFRS
c. Generally continue to be subject to existing accounting policies.
d. Comply with the IFRS Framework document.
17. An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this constitutes a loan by the cedant that will be repaid in the future. IFRS 17 requires that
a. Each payment by the cedant is accounted for as loan advance and as payment for insurance cover.
b. The premium is not accounted for.
c. The premium paid is treated purely as a loan.
d. The insurance premium is accounted for a revenue.
18. An entity should apply IFRS 17 to which of the following?
a. Contingent consideration receiable in business combination.
b. Reinsurance contracts issued by the entity.
c. Product warrantis issued by an entity which is manufacturer.
d. Employer's asset and liabilities under employment benefit plans.
19. A reinsurance contract is
a. An insurance contract issued by one insurer to compensate another insurer for losses on one or more contract issued by the latter.
b. All of these reinsurance contract.
c. A financial guaratne contract
d. A direct insurance contract.
20. The cedant is
a. The guaranteed benefit under a reinsurance contract.
b. The insurer under a reinsurance contract.
c. The policyholder under a reinsurance contract.
d. The discretionary participation feature of an insurance contract.
Consignment sales
Problem 1
On October 20, 2016, Abrahan company consigned 40 freezers to Holden Company costing P14,000 each for sale of P20,000 each and paid P16,000 in transportation costs. On December 30, 2016, Holden reported the sale of 10 freezers and remitted P170,000. The remittance was net of the agreed 15% commission.
Q1: What amount should Grimm recognize as consignment sales revenue for 2016?
Problem 2
The following information was derived from the 2016 accounting records of SHARK Co.:
SHARK's Central Warehouse SHARK's Goods Held by Consignees
Beginning P55,000 P6,000
Inventory
Purchases 240,000 30,000
Freight-in 5,000
Transportation to 2,500
consignees
Freight-out 4,000
Ending inventory 10,000
Q2: What is SHARK's 2016 cost of sales?
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