FAR

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. An entity had a plantation forest that is likely to be harvested and sold in 30 years. The income should be
accounted for in which of the following way?
a. Income should be measured annually and reported using a fair value approach that
recognizes and measures biological growth.
b. No income should reported annually until first harvest and sale in 30 years.
c. The eventual sale proceeds should be estimated and matched to the profit and loss account
over the 30 year period.
d. The plantation forest should be valued every 5 years and the increase in value should be
shown in the statement of recognized gains and losses.
____ 2. Inventories are defined as
I Assets held for sale in the ordinary course of business, in the process of production for
such sale, or in the form of materials or supplies to be consumed in the production process
or in the rendering of services
II Assets held for sale, in the process of production, or in the form of materials or supplies to
be consumed in the production process
III Tangible assets held for sale in the ordinary course of business, in the process of
production, or in the form of materials or supplies to be consumed in the production
process or in the rendering of services

a. I, II and III
b. I and II only
c. I only
d. II and III only
____ 3. When an entity makes a voluntary change in its accounting policy that has an effect on the current period, it is
required to disclose all of the following, except
a. The nature of the change
b. The amount of the adjustment for each financial statement line item affected
c. The reasons why the change will provide more relevant information
d. The reasons why the previous policy no longer provides reliable information
____ 4. Mario Company has P500,000 of notes payable due June 15, 2019. The entity signed an agreement on
December 1, 2018 to borrow up to P500,000 to refinance the notes payable on a long-term basis with no
payments due until 2020. The financing agreement stipulated that borrowings may not exceed 80% of the
value of the collateral. At the date of the issuance of 2018 financial statements, the value of the collateral was
P600,000 and is not expected to fall below this amount during 2018. On December 31, 2018, what amount of
the notes payable should be classified as noncurrent?
a. 500,000
b. 480,000
c. 20,000
d. 0
____ 5. Which of the following statements correctly refers to the provisions of PAS 28 Investments in Associates?
 I If an investor acquires additional shares sufficient to give him significant influence, a
retrospective adjustment should be made on the financial statements to recognize
share in profits and losses of the investee not previously recognized.
II No adjustment to the investment account is made when changing from the fair value
method to the equity method.

a. I and II
b. neither I and II
c. I
d. II
____ 6. On November 30, 2015 accounts receivable in the amount of P900000 were assigned to Jolly Finance Co.
by Bee as a security for a loan of P750, 000. Jolly charged a 3% commission on the accounts; the interest rate
n the note is 12%. During the December 2015, Bee collected P350, 000 on assigned accounts after deducting
P560 of discounts. Bee wrote off a P530 assigned account. On December 31, 2015, Bee committed to Jolly
the amount collected plus one monts interest on the note.

How much is Bees equity in the assigned accounts receivable as on December 31, 2015?
a. 141,410
b. 148,910
c. 149,470
d. 141,970
____ 7. On January 1, 2014, Ken Company's allowance for doubtful accounts had a credit balance of P300,000.
During 2014, Ken charged P640,000 to doubtful accounts expense, wrote off P460,000 of uncollectible
accounts receivable, and unexpectedly recovered P 1 20,000 of bad debts written off in the prior year. The
allowance for doubtful accounts at December 31, 2014 should be
a. 600,000
b. 640,000
c. 940,000
d. 480,000
____ 8. The unadjusted current assets section and shareholders' equity section of John Company on December 31,
2014 are as follows:

Current assets
Cash 600,000
Available for sale securities (including cost of P300,000 of John
Company's shares) 1,000,000
Trade accounts receivable 3,500,000
Inventory 1,500,000
Total 6,600,000

Shareholders' equity
Share capital 5,000,000
Share premium 2,000,000
Retained earnings 500,000
Total 7,500,000

In the statement of shareholders' equity, the total equity at December 31, 2014 is
 a. 7,500,000
b. 7,200,000
c. 7,800,000
d. 5,200,000
____ 9. On January 1, a store had inventory of P55,000. January purchases were P46,000 and January sales were
P105,000. On February 1, a fire destroyed most of the inventory. The rate of gross profit was 25% of cost.
Merchandise with a selling price of P7,500 remained undamaged after the fire. Compute the amount of the
fire loss, assuming the store had no insurance coverage.
a. 11,000
b. 9,500
c. 14,750
d. 16,625
____ 10. Sabrina Corp. pays commissions to its sales staff at the rate of 3% of net sales. Sales staff are not paid salaries
but are given monthly advances of P30,000. Advances are charged to commission expense and reconciliations
against commissions are prepared quarterly. Net sales for the year ended March 31, 2013 were P30 million.
The unadjusted balance in the commissions expense account on March 31, 2013 was P800,000. March
advances were paid on August 3, 2013. In its income statement for the year ended March 31, 2013, what
amount should Sabrina report as commission expense?
a. P830,000
b. P930,000
c. P900,000
d. P800,000
____ 11. Which depreciation method provides higher depreciation expense during the early years of asset life?
a. Units of production method
b. Sum of years digits method
c. Straight line method
d. Service hours method
____ 12. In which of the following does X have significant influence?
a. X owns 80% of Y, and Y owns 40% of Z. In Ys separate financial statements, the
investment in Z is classified as held for sale in accordance with PFRS 5.
b. X owns 30% of the preference shares of Z Co.
c. X owns 30% of the voting shares of ABC Co., the other 60% is held by Y and all seats on
the board of directors are appointed by Y.
d. X owns 15% of the voting shares of ABC Co., all other shares are held in very small
blocks and therefore X has representatives in the board of directors.
____ 13. Which of the following statements are in accordance with PAS 28?

I When the associate has cumulative preference shares, the investor computes its share
in the profit or loss of the investee after deducting the preferred dividends, only when
such dividends are declared.
II When the associate has non-cumulative preference shares, the investor computes its
share in the profit or loss of the investee after deducting the preferred dividends,

a. true, true
b. false, true
c. true, false
d. false, false
____ 14. When a public shareholding company changes an accounting policy voluntarily, it has to
a. treat the effect of the change as an extraordinary item
b. account for it retrospectively
c. treat it prospectively and adjust the effect of the change in the current period and future
periods.
d. inform shareholders prior to taking the decision
____ 15. At December 31, 2015, Espresso Company had 1, 000 gift certificates outstanding which had been sold to
customers during 2015 for P75. Espresso operates on a gross margin of 60%. How much revenue pertaining
to the 1, 000 outstanding gist certificates should be deferred at December 31, 2015?
a. 45,000
b. 0
c. 75,000
d. 30,000
____ 16. Roan Company uses the allowance method of accounting for bad debts. The following summary schedule was
prepared from an aging of accounts receivable outstanding ori December 31 of the current year:

Number of days Probability of

Amount
outstanding collection
0-30 days 5,000,000 .98
31-60 days 2,000,000 .90
Over 60 days 1,000,000 .80

The following additional information is available for the current year

Net credit sales for the year 40,000,000

Allowance for doubtful accounts:
Balance, January 1 450,000 (cr)
Balance before adjustment, Dec 31 20,000 (dr)

If Roan Company bases its estimate of bad debts on the aging of accounts receivable, doubtful accounts
expense for the current year should be
a. 500,000
b. 520,000
c. 470,000
d. 480,000
____ 17. Tina Company has four manufacturing divisions, each of which has been determined to be a reportable
segment. Common costs are appropriately allocated on the basis of each division's sales in relation to Tina's
aggregate sales. Tina's Delta division accounted for 40% of Tina's total sales in the current year. For the
current year ended December 31, Delta had sales of P8,000,000 and traceable costs of P4,800,000. In the
current year, Tina incurred costs of P800,000 that were not directly traceable to any of the divisions. In
addition, Tina's Delta division incurred interest expense of P640,000.

It is an entity policy that interest expense is included in the measure of profit or loss that is reviewed by the
chief operating decisionmaker.

In reporting supplementary segment information, how much should be shown as Delta's profit for the current
year?
 a. 2,880,000
b. 8,000,000
c. 3,200,000
d. 2,240,000
____ 18. The cost of an item of property, plant and equipment acquired in a nonmonetary exchange is measured at the
a. Carrying amount of the asset given up
b. Fair value of the asset given up
c. Fair value of the asset received
d. Carrying amount of the asset received
____ 19. On January 1, 2012, an entity issued bonds at a discount. The bonds mature on December 31, 2017. The entity
incorrectly used the straight line method instead of the effective interest method to amortize the discount.
How is the carrying amount of the bonds affected by the error?
a. December 31, 2012 (Overstated); December 31, 2017 (Understated).
b. December 31, 2012 (Understated); December 31, 2017 (No effect).
c. December 31, 2012 (Understated); December 31, 2017 (Overstated).
d. December 31, 2012 (Overstated); December 31, 2017 (No effect).
____ 20. When land and building are acquired for a lump sum price and the building is demolished, the materials
salvaged from the building that were used in the construction of a new building should be
a. Deducted from the cost of the land and added to the cost of the building.
b. Included as income from continuing operations.
c. Ignored when the demolition costs, net of actual sale proceeds of salvaged materials, are
capitalized as cost of the new building.
d. Added to the cost of the new building.
____ 21. On May 1, 2013, a flash flood caused damage to the merchandise stored in the warehouse of Rafael Company.
The following data were established:

Net sales for 2012 were P800,000 matched against cost of P560,000
Merchandise inventory, January 1, 2013 was P200,000, 90% of which was in the
warehouse and 10% in downtown showrooms.
From January 1, 2013 to date of flood, the invoice value of purchases (all stored in
the warehouse) is ascertained to be P100,000; freight inward, P4,000; and purchase
return, P6,000
Cost of merchandise transferred from the warehouse to showrooms was P8,000 and
net sales from January 1 to May 1, 2013 (all warehouse stock) amounted to
P320,000.

What is the estimated cost of merchandise destroyed by the flood?

a. 50,000
b. 66,000
c. 80,000
d. 46,000
____ 22. Under PAS 28, adjustments to share in profit or loss of an associate may differ if the transaction is
downstream or upstream. Which of the following statements is true?

I Jack Co. owns 20% interest in Old Man, Inc. During the year Old Man sold magic
beans to Jack. This is an upstream transaction.
 II Goldilocks Co. owns 20% interest in Papa Bear, Inc. During the year Goldilocks
purchased porridge from Papa Bear. This is a downstream transaction.

a. false, false
b. false, true
c. true false
d. true, true
____ 23. Which of the following statements relating to the FRSC and standard setting process in the Philippines is (are)
true?
I Members of the FRSC who are recommended by PICPA as the representatives of the four
sectors of the accountancy profession should ne CPAs.
II The Financial Reporting Standards Council (FRSC), Board of Accountancy (BOA), the
Philippine Institute of CPAs (PICPA), the Philippine Interpretations Committee (PIC) and the
Professional Regulations Commission (PRC) are all involved in the standard setting process
with PRC as the final approving authority.
III Members of the accountancy profession may participate in the accounting standard-setting
process by responding to invitations to comment on the Exposure Drafts issued by the
accounting standard-setters

a. I and II are true

b. I and III are true
c. I is true
d. I,II and III are true
____ 24. Plant assets purchased on long-term credit contracts should be accounted for at
a. the future amount of the future payments
b. the present value of the future payments
c. the total value of the future payments
d. none of these
____ 25. Victor Company, an entity listed on a recognized stock exchange, reports operating results from its North
American division to its chief operating decision maker. The segment information for the current year is as
follows:

Revenue 3,675,000
Profit 970,000
Assets 1,700,000
Number of employees 2,500

Victor's results for all of its operating segments in total are:

Revenue 39,250,000
Profit 9,600,000
Assets 17,500,000
Number of employees 18,500

Which piece of information determines for Victor that the North American division is a reportable operating
segment?
a. Revenue
 b. Assets
c. Profit
d. Number of Employees
____ 26. Revenue from an artistic performance is recognized once
a. Cash has been received from the ticket sales,
b. The event takes place.
c. The tickets for the concert are sold
d. The audience register for the event online
____ 27. An entity issues bonds that pay interest each March 1 and September 1, The entity's December 31 adjusting
entry may include
a. Credit to discount on bonds payable
b. Debit to cash
c. Debit to interest payable
d. Credit to interest expense
____ 28. The general ledger trial balance of W Corporation includes the following statement of financial position
accounts at December 31, 2015:

Inventory(including inventory expected in the ordinary course of operations

to be said beyond 12 months accounting to P70, 000) 110, 000
Trade receivables 120, 000
Prepaid Insurance 8, 000
Listed investments held for trading purposes at fair value 20, 000
Available for sale investments 80, 000
Cash and cash equivalents 30, 000
Deferred tax assets 15, 000
Bank overdraft 25, 000

The amount that should be reported as current assets on Ws statement of financial position is
a. 298,000
b. 218,000
c. 368,000
d. 288,000
____ 29. Under PAS 16, revaluation of property, plant and equipment to appraised value is an acceptable alternative to
historical cost provided certain requirements are complied with. Which of the following is not one of the
requirements?
a. the revaluation surplus should be presented in equity.
b. appropriate disclosures should be made in the financial statements.
c. the appraisal should be made by a competent and independent specialist once a year at
each end of reporting period.
d. depreciation to be charged to operations should be based on appraised values or its
equivalent.
____ 30. PFRS 4 was introduced principally for what reason?
a. Because of pressure from the financial services authorities in several countries.
b. To make limited improvements to the accounting for insurance accounting.
c. To completely overhaul insurance accounting.
d. As a response to recent scandals within the insurance industry.
____ 31. The entity's current ratio is 4:1. Which of the following transactions would normally increase current ratio?
a. Purchasing inventory on account
b. Collecting an account receivable.
c. Purchasing machinery for cash.
d. Selling inventory on account
____ 32. When the equity method is used to account for investments in common stock, which of the following affects
the investors reported investment income?
a. Equipment amortization related to purchase (Yes); Cash dividends from investee (Yes)
b. Equipment amortization related to purchase (Yes); Cash dividends from investee (No)
c. Equipment amortization related to purchase (No); Cash dividends from investee (No)
d. Equipment amortization related to purchase (No); Cash dividends from investee (Yes)
____ 33. How should repayment of a long-term loan comprising repayment of the principal amount and interest due to
date on the loan be treated in a cash flow statement?
a. The repayment of the principal portion of the loan is a cash flow belonging in investing
activities section; the interest payment should be netted against interest received on bank
deposits, and the net amount of interest should be disclosed in the operating activities
section.
b. The repayment of the principal portion of the loan is a cash flow belonging in the
investing activities section, the interest payment belongs either in the operating activities
section or the financing activities section.
c. The repayment of the principal portion of the loan is a cash flow belonging in the
investing activities section; the interest payment belongs in the operating activities section
because PAS 7 does not permit any alternatives in case of interest payments.
d. The repayment of the principal portion of the loan is a cash flow belonging in the
investing section; the interest payment belongs either in the operating activities section or
the investing section.
____ 34. Nix Corp. was a development stage enterprise from October 10, 2011 (inception) through December 31, 2012.
The year ended December 31, 2013 was the first year in which Nix qualified as an established operating
enterprise. The following are among the costs incurred by Nix:

For the period For the year

10/10/11 to ended
12/31/12 12/31/13
Leasehold improvements, equipment and furniture 1,000,000 330,000
Security deposits 60,000 30,000
Research and development 750,000 900,000
Laboratory operations 175,000 550,000
General and administrative 225,000 685,000
Depreciation 25,000 115,000
2,235,000 2,530,000

From its inception through the period ended December 31, 2013, what is the total amount of costs incurred by
Nix that should be charged to operations?
a. 1,775,000
b. 1,350,000
c. 2,250,000
d. 3,425,000
____ 35. What factor must be present to use the units of production method of depreciation?
a. Obsolescence is expected
b. Total units to be produced can be estimated
c. Production is constant over the life of the asset
d. Repair costs increase with use
____ 36. Which of the following affects the total shareholders' equity?
a. Issue of warrants as evidence of preemptive rights
b. Declarations of share dividends
c. Issue of bonds with nondetachable share warrants
d. Issue of additional shares as a result of share split
____ 37. A construction company signed a contract to build a theater over a period of 2 years, and with this contract
also signed a maintenance contract for 5 years. Both the contracts are negotiated as a single package and are
closely interrelated to each other. The two contracts should be
a. Segmented and considered 2 separate contracts
b. Combined and treated as a single contract.
c. Treated differently, the building contract under the completed contract method and
maintenance contract under the percentage of completion method.
d. Recognized under the completed contracted method.
____ 38. Property, plant and equipment items which are subject to any provision for depreciation or reduction in value,
should be valued in the balance sheet by adding to the actual price paid any expenses incidental to its
acquisition. Which of the following cost items might be included in such incidental expenses and are to be
capitalized as part of machinery?

I installation
II cost delivery and handling
III cost site preparation
IV professional fees

a. Yes, Yes, Yes, Yes

b. Yes, No, Yes, No
c. No, Yes, No, Nno
d. Yes, Yes, Yes, No
____ 39. Which of the following assets do not qualify for capitalization of interest costs incurred during construction of
the assets?
a. Assets under construction for an enterprise's own use
b. Assets not currently undergoing the activities necessary to prepare them for their intended
use
c. Assets intended for sale or lease that are produced as discrete projects
d. Assets financed through the issuance of long-term debt
____ 40. Which measurement model applies to exploration and evaluation assets subsequent to initial recognition?
a. recoverable amount model
b. the revaluation model
c. the cost model
d. either the cost or revaluation model
____ 41. Which of the following is not a valid condition that will exempt an entity from preparing consolidated
financial statements?
 a. The ultimate parent entity produces consolidated financial statements available for public
use that comply with PFRS.
b. The parent entitys debt or equity capital is not traded on the stock exchange.
c. The parent entity is in the process of filing its financial statements with a securities
commission.
d. The parent entity is a wholly owned subsidiary of another entity.
____ 42. Which of the following is not a category of financial assets defined in PAS 39?
a. Available-for-sale financial assets
b. Financial assets at fair value through profit or loss
c. Loans and receivables
d. Held-for-sale investments
____ 43. Economic factors that shorten the service life of an asset include
a. supersession
b. inadequacy
c. all of these
d. obsolescence
____ 44. On January 1, 2018, Toto Construction Company changed to the percentage of completion for financial
reporting but not for tax reporting. On December 31, 2017, the entity compiled data showing that income
under the cost recovery method aggregated P700,000. If the percentage of completion had been used, the
accumulated income through December 31, 2017 would have been P880,000. The income tax rate is 40% for
all years. What should be reported as a result of this accounting change?
a. An increase in the ending retained earnings of P180,000 in 2017.
b. A cumulative effect adjustment of P108,000 in the 2018 income statement.
c. An increase in construction in progress for P180,000 in 2017 statement of financial
position.
d. A decrease in beginning retained earnings for P108,000 in 2018.
____ 45. Provisions shall be recognized for all of the following except:
a. rectification costs relating to defective products already sold.
b. cleaning up costs of contaminated land when an oil entity has a published policy that it
will undertake to clean up all contamination that it causes.
c. future refurbishment costs due to introduction of a new computer system.
d. restructuring costs after a binding sale agreement has been signed.
____ 46. On January 1, 2015, Rolly Company purchased an equipment for P8, 000,000. The equipment is depreciated
using straight line method based on a useful life of 8 years with no residual value. On January 1, 2018, after 3
years, the equipment was revalued at a replacement cost of 12,000,000 with no change in residual value. On
June 30, 2018, the equipment was sold for 10,000,000. What is the effect of the June 30, 2018 transaction to
the retained earnings?
a. 5,750,000 increase
b. 5,000,000 increase
c. 2, 500,000 increase
d. 3,250,000 increase
____ 47. Which of the following is not a qualitative characteristic of financial statements according to the Framework?
a. Comparability
b. Understandability
c. Materiality
d. Relevance
____ 48. Don Company takes a full years depreciation expense in the year of an assets acquisition and no
depreciation expense in the year of disposition. Data relating to a depreciable asset on December 31, 2012 are
as follows:

Cost 1,100,000
Residual value 200,000
Accumulated depreciation 720,000
Estimated useful life 5 years

The asset was acquired on July 1, 2010. Using the same depreciation method in 2010, 2011, and 2012, what
amount of depreciation should be recorded in 2013?
a. 180,000
b. 240,000
c. 220,000
d. 120,000
____ 49. What is the authoritative status of the Framework?
a. The Framework applies only when PASB develops new or revised Standards. An entity is
never required to consider the Framework.
b. If there is a Standard or Interpretation that specifically applies to a transaction, it overrides
the Framework. In the absence of a Standard or an Interpretation that specifically applies,
the Framework should be followed.
c. If there is a standard or Interpretation that specifically applies to a transaction, it overrides
the Framework. In the absence of a Standard or an Interpretation that specifically applies
to a transaction, management should consider the applicability of the Framework in
developing and applying an accounting policy that results in information that is relevant
and reliable.
d. It has the highest level of authority. In case of a conflict between the Framework and a
Standard or Interpretation, the Framework overrides the Standard or Interpretation.
____ 50. E.G. Co. exchanged similar nonmonetary assets with Example Co. and no cash was exchanged. The carrying
amount of the asset surrendered by E.G. exceeded both the fair value of the asset received and Example's
carrying amount of that asset. E.G. should: (assume exchange has commercial substance)
a. Recognize the difference between the carrying amount of the asset it surrendered and the
fair value of the asset it surrendered as a loss.
b. Recognize the difference between the carrying amount of the asset it surrendered and the
fair value of the asset it received as a gain.
c. Recognize the difference between the carrying amount of the asset it surrendered and the
carrying amount of the asset it received as a loss.
d. Recognize no gain or loss.
FAR
Answer Section

MULTIPLE CHOICE

1. ANS: A OBJ: Biological Assets

2. ANS: A OBJ: Inventories
3. ANS: D OBJ: Accounting changes
4. ANS: B OBJ: Liabilities
5. ANS: B OBJ: Investment in Associate
6. ANS: B
7. ANS: A
SOL:
Allowance for doubtful accounts - January 1 300,000
Doubtful accounts 640,000
Recovery of accounts receivable written off 120,000
Total 1,060,000
Uncollectible accounts written off ( 460,000)
Allowance for doubtful accounts - December 31 600,000

OBJ: Accounts receivable

8. ANS: B

SOL:
Share capital 5,000,000
Share premium 2,000,000
Retained earnings 500,000
Treasury shares (reacquired United Company's
shares erroneously included in available for sale
securities) ( 300,000)
Total equity 7,200,000

OBJ: Shareholders' equity

9. ANS: A OBJ: Inventory estimation
10. ANS: C OBJ: Statement of comprehensive income
11. ANS: B OBJ: Depreciation
12. ANS: D OBJ: Investment in Associate
13. ANS: D OBJ: Investment in Associate
14. ANS: B OBJ: PAS 8
15. ANS: C
16. ANS: B
SOL:
0 -30 days (5,000,000 x 2%) 100,000
31 - 60 days (2,000,000 x 10%) 200,000
Over 60 days (1,000,000 x 20%) 200,000
Required allowance - December 31 500,000
 Add: Debit balance in allowance 20,000
Doubtful accounts expense 520,000

OBJ: Accounts receivable

17. ANS: D
SOL:
Sales - Delta division 8,000,000
Expenses:
Traceable costs 4,800,000
Allocated indirect costs (40% x 800,000) 320,000
Interest expense 640,000 5,760,000
Segment profit 2,240,000

Note that the interest expense is included in the measure of profit or loss that is reviewed by the chief
operating decision maker

OBJ: Operating segment

18. ANS: B OBJ: Property, plant and equipment
19. ANS: D
20. ANS: C OBJ: Property, Plant and Equipment
21. ANS: D
Inventory 1/1/12 - warehouse (200,000 x 90%) 180,000
Net purchase (100,000 + 4,000 6,000) 98,000
GAS 278,000
Less: cost of sales (320,000 x 70%) (224,000)
Estimated ending inventory in warehouse 54,000
Less: goods transferred to showroom ( 8,000)
Flood loss 46,000

OBJ: Inventory estimation

22. ANS: C OBJ: Investment in Associate
23. ANS: B OBJ: Conceptual framework
24. ANS: B OBJ: Property, plant and equipment
25. ANS: C
SOL:
Profit threshold (970,000/9,600,000) 10.10%
The revenue of the North American segment is less than 10% of the total revenue of all operating segments.
The assets of the North American segment are also less than 10% of the total assets of all operating segments

OBJ: Operating segment

26. ANS: B OBJ: PAS 18
27. ANS: A OBJ: Bonds payable
28. ANS: D
29. ANS: C OBJ: Property, Plant and Equipment
30. ANS: B OBJ: PFRS 4
31. ANS: D OBJ: Financial statement analysis
32. ANS: B OBJ: Investment in Associate
33. ANS: B OBJ: PAS 7
34. ANS: D OBJ: Statement of comprehensive income
35. ANS: B OBJ: Depreciation
36. ANS: C OBJ: Shareholders equity
37. ANS: B OBJ: PAS 11
38. ANS: A OBJ: Property, Plant and Equipment
39. ANS: B OBJ: Borrowing costs
40. ANS: D OBJ: PFRS 6
41. ANS: C OBJ: PAS 27
42. ANS: D OBJ: PAS 39
43. ANS: C OBJ: Depreciation
44. ANS: C OBJ: Accounting changes
45. ANS: C
46. ANS: B OBJ: Retained earnings
47. ANS: C OBJ: Conceptual Framework
48. ANS: D OBJ: Depreciation
49. ANS: C OBJ: Conceptual Framework
50. ANS: A OBJ: Property, Plant and Equipment