Which of the following statement is true regarding the net approach of presenting government grants? A. Government grant related to income has a deferred income from government grant account. B. Government grant related to asset has a deferred income from government grant account. C. For grants related to asset, depreciation expense is higher as compared to gross approach (unearned income from government grant approach). D. Government grant related to asset has to recognize an income from government grant.
Which of the following statement is true regarding the net approach of presenting
government grants?
A. Government grant related to income has a deferred income from government
grant account.
B. Government grant related to asset has a deferred income from government grant
account.
C. For grants related to asset,
gross approach (unearned income from government grant approach).
D. Government grant related to asset has to recognize an income from government
grant.
From the below statements, which of them is a false statement regarding FSRSC?
A. The chairman should be a senior practitioner of any scope of the accountancy
profession.
B. FSRSC members serve without compensation for a term of three years, which can
be renewed for another three years.
C. Not all members of FSRSC should be CPAs.
D. FSRSC is the current standard setting-body in the Philippines. Its current
pronouncements are PASs.
Which of the following statements is correct concerning the accounting for
investment in associate using equity method?
A. The investment in associate is initially measured at fair value less cost to
sell.
B. The investor's share in the investee’s profit or loss is recognized in the
investor's profit or loss.
C. Dividends received from the associate are accounted for as a return on
investment rather than return of investment.
D. The investment in associate is increased or decreased by the investor's share
of the profit or loss of the investee before and after the date of
acquisition.
Which of the following statement is incorrect regarding depreciation?
A. Depreciation commences when the asset is actually used and brought into
operations.
B. Depreciation of an item of PPE ceases when it is derecognized or becomes
available for sale whichever is earlier.
C. When there is a change either in the asset’s useful life, residual value or
depreciation method, future depreciation changes.
D. PAS 16 requires management to choose the method that best reflects the
expected pattern of consumption of the future economic benefits embodied on
the asset.
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