Problem 2.9:In a joint operation, each party recognizes:a) Their share of assets, liabilities, revenues andexpensesb) Only their share of profitsc) Only their investment at costd) Nothing until profits are distributed

Explanation of Their share of assets, liabilities, revenues and expenses:In a joint operation, each…

Answered: Problem 2.9: In a joint operation, each…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 12GI

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In a business combination, an acquirer's interest in the fair value of the net assets acquired exceeds the consideration transferred in the combination. Under PFRS 3 Business Combinations, the acquirer should A. recognize the excess immediately in profit or los B. recognize the excess immediately in other comprehensive income C. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in other comprehensive income D. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in profit or loss
Unconditional transfers of cash or other resources to an entity in a voluntary, nonreciprocal transaction should be recognized as Select one: a.non-operating gains. b. revenue. c.other comprehensive income. d. liabilities.
In a business combination, an acquirer's interest in the fair value of the net assetsacquired exceeds the consideration transferred in the combination. Under PFRS3 Business Combinations, the acquirer should A. reassess the recognition and measurement of the net assets acquired and theconsideration transferred, then recognize any excess immediately in othercomprehensive income B. recognize the excess immediately in other comprehensive income C. recognize the excess immediately in profit or loss D. reassess the recognition and measurement of the net assets acquired and theconsideration transferred, then recognize any excess immediately in profit or loss
2 points mcq general accounting
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20
14
Which of the following is not an advantage of establishing a special purpose entity (SPE)? O a. avoiding consolidation O b. low cost of financing O c. use of governing agreements to restrict the SPE's activities O d. can currently be used as a way to provide off balance sheet financing
2. In defined benefit plans no separate investment accounts exist for each participant but rather they are commingled together with each having a certain right to a portion of the pooled funds. a. True b. False
Under PFRS 15, in which of the following instances will the revenue from contracts with customers be recognized at a point in time instead of over time? Group of answer choices When the entity’s performance creates or enhances an asset that the customer controls as the asset is created. When the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs. When the entity has transferred physical possession and legal title to the asset to the customer When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
Which of the following statements about joint arrangements is/are incorrect: (i) Whenever a joint arrangement is structured through a vehicle that is separate from the parties, the arrangement is classified as a joint venture (ii) Whenever the contractual arrangements give the parties rights to the assets and obligations for the liabilities of the arrangement, the arrangement is classified as a joint operation (iii) Joint operations are reported in the consolidated statement of financial position of the joint operator by recognising the share of assets and liabilities attributable to the joint operator (iv) Joint ventures are reported in the consolidated statement of financial position of the joint venturer using the equity method of accounting a. (i) only b. (ii) only c. (iii) only d. (iv) only e. (i) and (ii)
15 All financial assets are initially measured at fair value plus transaction costs, except Group of answer choices Fair value through OCI Fair value through profit and loss Amortized cost None of these

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Problem 2.9: In a joint operation, each party recognizes: a) Their share of assets, liabilities, revenues and expenses b) Only their share of profits c) Only their investment at cost d) Nothing until profits are distributed