Mary Mickaella R.

Ventura

BSA 2-C

Group 3 – Among Us

p. 254 – p. 256 – INTER. 3

Problem 4: Multiple Choice – Theory

1. According to PFRS 5, assets held for sale are measured at

a. Fair value
b. Fair value less costs to sell
c. Carrying amount
d. Lower of b and c

2. Assets held for sale are

a. Required under PAS 36 to be tested for impairment annually
b. Amortized over a period not exceeding 5 years.
c. Depreciated
d. Not depreciated

3. According to PFRS 5, held for sale classification is permitted when

a. The non-current asset or disposal; group is available for immediate sale in its present
condition
b. The sale is highly probable
c. A and B
d. The sale actually occurred after the reporting period but before the financial statements
were authorized for issue.

4. The qualification of an asset to be classified as held for sale after the reporting period but before
the financial statements are authorized for issue
a. Is a non-adjusting event after reporting period.
b. Is an adjusting event after reporting period.
c. Is an extraordinary item.
d. A or B

5. According to PFRS, gain on impairment reversal on an asset held for sale is

a. Recognized for the fair value change during the period
b. Recognized in other comprehensive income
c. Recognized only to the extent of cumulative impairment losses previously recognized.
d. Not recognized
6. According to PFRS 5, the assets and liabilities of a disposal group are presented
a. As one-line item in either current assets or current liabilities.
b. As one-line item in either non-current assets or non-current liabilities.
c. Separately on the face of the statement of financial position.
d. A or B

7. The results of discontinued operations are presented separately in the statement of profit or
loss and other comprehensive income
a. As a single amount gross of tax
b. As a single amount of net tax
c. As part of the regular line items
d. A or B

8. According to PFRS 5, a disposal group may qualify as discontinued operation if

a. It is a component of an entity
b. Meets the held for sale classification criteria under PFRS 5.
c. A and B
d. None of these

9. The results of a discontinued operations are presented in the statement of profit or loss
a. Before the profit or loss from continuing operations but after the profit for the year.
b. After the profit or loss from continuing operations but before the profit for the year.
c. Separately from the profit or loss from continuing operations and it does not affecr the
profit for the year.
d. As an adjustment to the beginning balance of the retained earnings.

10. The statement of profit or loss includes which of the following?

a. Revenue, cost of goods sold, distribution costs, general, and administrative expenses and
extraordinary items.
b. Discontinued operations.
c. Gains and losses arising from treasury share transactions.
d. Other comprehensive income.