Question 50 1 pts

Occidental Company's P 10,000,000 net income for the quarter ended September 30, 2009,
included the following after-tax items

• A P 1,200,000 gain realized on April 30, 2009 was allocated equally to the second, third and
fourth quarters of 2009.
• A cumulative loss resulting from a change in inventory valuation method was
recognized on August 2, 2009.

In addition, Occidental paid P600,000 on February 1, 2009, for 2009 calendar-year property tax.

Of this amount, P150,OOO was allocated to the third quarter of 2009. For the quarter ended
September 30, 2009, Occidental should report net income of

Question 49 1 pts

SurCompany has estimated that total depreciation expense for the year ending December 31,
2009 will amount to and the 2009 year-end bonuses to employees will total

Sur paid P500,000 property taxes assessed for the year 2009. On June 30, 2009, Sur
incurred a permanent inventory loss form market decline of P800,OOO and loss on sale of land of

P200,000. In the interim income statement for the six months ended June 30, 2009, what total

amount of expenses relating to these items should be reported?

 Question 48 1 pts

An entity operates in the travel industry and incurs cost unevenly through the financial year. Advertising costs of P2 million

were incurred on March 1, 2009, and staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be
around P20 million for the year; of that sum, P3 million would cost relate to the period ending March 31, 2009. What costs
should be included in the entity's quarterly financial report to March 31, 2009?

O Advertising costs PO.5 million; staff bonuses P3 million

O Advertising costs PO.5 million; staff bonuses P5 million

C) Advertising costs P2 million; staff bonuses P5 million

@ Advertising costs P2 million; staff bonuses P3 million

Question 47 1 pts

Count Company discloses supplementary industry segment information. Count Company has three segments, namely
Segment Uno, Segment Dos and Segment Tres. For the year ended December 31, 2009, Segment Uno, Dos and Tres,
respectively reported sales and traceable operating costs of P5,OOO,OOO and P3,OOO,OOO, and P7,OOO,OOO,
P15,OOO,OOO and During 2009, Count Company incurred P4,500,OOO operating costs that were not directly
traceable to any of the segments. In addition, Count incurred Pl,500,OOO general corporate expenses, including interest of

P300,OOO. Appropriate common expenses are allocated to segments based on the ration of segment's sales to total sales.

What was Segment Tres' operating profit for 2009?

Australia Company has three business segments with the following information:

Three

sales to outsiders

Intersegment

transfer 600,000 I.ooo,ooo 1,400.000

Interest income -

outsiders 400,000 500.000 600.000

Interest income -

intersegment
300,000 400,000 500.000
loans

What is the minimum amount of revenue that each of those segments must have to be considered reportable?

O P2,370.OOO

@ P1950.ooo

O PZ250.OOO

O P2.100.OOO
On January 1, 2020, Builder Co. entered into a P 20 million long-term fixed price contract to construct a factory building.

Builder accounts for this contract under the percentage of completion method at the end of each quarter for 2020.
Relevant data follows:

Percentage of
Quarter Estimated Costs
Completion

3 25%

4 25%

No work was performed in the second and fourth quarters, What amount should be reported by Builder as income (loss) on
construction contract for the first quarter of 2020?

O P 5,000.000

O P 250.000

@ P 500,000
 Question 44 1 pts

IFRS 8 - Operating Segments shall apply to the separate or individual financial statements of

an entity whose/which

l. debt or equity instruments are traded in a public market (a domestic or foreign stock exchange
or an over-the-counter market including local and regional markets)

II. files, or is in the process of filing its financial statements with a securities commission or other
regulatory organization for the purpose of issuing any class of instruments in a public market

O either I or II

@ both I and II

O II only

O I only

Question 43 1 pts

A bonus is anticipated for interim purposes if and only if

l. The bonus is a legal obligation or past practice would make the bonus a constructive obligation

for which the enterprise has no realistic alternative but make the payment

II. A reliable estimate of the obligation can be made.

O either I or II

both I and II

O neither I nor II

O I only
(JRM - IFRS 8) Celsa Angel Co, which sells fashion hats, presented selected geographical segments as follows:

% of revenue to
percentage using percentage using percentage using
external customers
revenue test profit test asset test
to total revenue

North America 51% 41% 58%

Europe 12%

Asia 36% 35%

Oceania 55% 6% 8% 2%

Which are reportable segments?

O North America only

O North America and Oceania

North America, Europe and Asia

O North America. Europe. Asia, Oceania

 Question 41 1 pts

(JRM) Legacy Rural Bank, in its first year of operations, started using its equipment costing P
10,000,000 on January 1, 2020, no salvage value. Straight-line depreciation method is used at a
uniform 5-year useful life. On the first day of the third quarter, Legacy purchased another
equipment costing no salvage value, Banks are required by the Bangko Sentral ng
Pilipinas (BSP) to submit interim reports for prudential reporting purposes.

How much depreciation should be recognized for the "to date" interim period ending June 30,
2020?

O P 500,000

Question 40 1 pts

If annual major repairs made in the first quarter and paid for in the second quarter benefit the
entire year, when should the repairs be expensed?

@ an allocated portion in each quarter of the year

C) in full in the first quarter

O an allocated portion in each of the last three quarters

O in full in the second quarter

Next
Question 38 1 pts

Ron Co, incurred an inventory loss from market decline of P 560,000 on June 30, 2020. What
amount of the inventory loss should be recognized in Ron's quarterly income statement for the

three months ended June 30, 2020?

O P 140,000

@ P 560,000

O P 280,000

Question 39 1 pts

Barr Co. had the following transactions during the quarter ended March 31, 2020:

Casualty loss P 300,000

Payment of mayor's permit for 2020 100,000

How much of these two items should be reported in the income statement for the quarter ended
March 31, 2020?

O P 400,000

O P 300,000

O P 100,000

@ P 325,000
Question 37 1 pts

On January 1, 2020, Ohio Co paid real estate taxes on its property for the calendar year 2020 in

the amount of P 600,000. In the first week of April 2020, Ohio made unanticipated major repairs
to its plant equipment at a cost of P 2,400,000. It is ascertained that these repairs will benefit
operations for the remainder of the calendar year. How much of these expenses should be
reflected in Ohio's third quarter income statement for 2020?

O P 950,000

@ P 750,000

Question 35 1 pts

On January 1, 2020, Ohio Co paid real estate taxes on its property for the calendar year 2020 in

the amount of P 600,000. In the first week of April 2020, Ohio made unanticipated major repairs
to its plant equipment at a cost of P 2,400,000. It is ascertained that these repairs will benefit

operations for the remainder of the calendar year. How much of these expenses should be
reflected in Ohio's first quarter income statement for 2020?

@ P 150,000

O P 750,000

O P 600,000
(Revised Problem - IFRS 8) Pluto Co. and its divisions are engaged solely in manufacturing. The following data pertain to the

industries in which operations were conducted for the current year ended December 31:

Segments Segment Profit (Loss)

P 3.400.OOO

w
x

400,000

z (200.000)

Additional information: Only V and W are the segments whose sales to external customers exceed 50 % of their total sales.

What segments are reportable based on the operating profit criterion?

O Vand W

O V, W. X and Y

O V, W. X, Y and Z

@ V, W and X

Question 34 1 pts

Seasonal, cyclical or occasional revenue should:

O be evenly distributed among the various interim periods equally

@ not be anticipated or deferred as of an interim date

O be anticipated or deferred as of an interim date

O be evenly distributed among the various interim periods using an allocation base
Question 33 1 pts

(JRM) Legacy Rural Bank, in its first year of operations, started using its

equipment costing P 10,000,000 on January 1, 2020, no salvage value.

Straight-line depreciation method is used at a uniform 5-year useful life. On
the first day of the third quarter, Legacy purchased another equipment costing
no salvage value, Banks are required by the Bangko Sentral ng
Pilipinas (BSP) to submit interim reports for prudential reporting purposes.

How much depreciation should be recognized for the third quarter?

O P 600,000

O P 500,000

@ P 750,000
Question 32 1 pts

IFRS 8 requires an entity to disclose the factors used to identify the entity's
operating segments including the basis of organization, for example,

@ whether management organizes the entity around differences in either products and
services, geographical areas or regulatory environments

O whether management organizes the entity around differences in products and

services

O whether management organizes the entity around differences in regulatory

environments

O whether management organizes the entity around differences in geographical areas

O whether management organizes the entity around differences in either products and
services or geographical areas
Question 31 1 pts

(Revised Problem - IFRS 8) Phoenix Co. has three lines of business, each of which was determined
to be reportable segment. Jumper's sales aggregated P 7,500,000 in 2020 of which Segment No. 1
contributed 40 %. Traceable costs were P 1,750,000 for Segment No. 1 out of a total of

for the company as a whole. For reporting purpose to the chief operating decision

maker, Phoenix allocates common costs of P 1,500,000 based on the ratio of a segment's income
fore common c sts to total income.

In its 2020 financial statements, how much should Phoenix report as operating profit for Segment
No. 1?

@ P 500,000

O P 1250,OOO

O P 650,000

Question 30 1 pts

For purposes of IFRS 8, an entity's post-employment benefit plans:

O may be considered operating segments if the retirement fund is a defined benefit

plan

@ are not operating segments

O No answer text provided.

O may be considered operating segments if the retirement fund is either a separate

fund or a defined benefit plan
 Question 30 1 pts

For purposes of IFRS 8, an entity's post-employment benefit plans:

O may be considered operating segments if the retirement fund is a defined benefit

plan

O are not operating segments

@ No answer text provided.

C) may be considered operating segments if the retirement fund is either a separate

fund or a defined benefit plan

Question 29 1 pts

On January 1, 2020, Ohio Co paid real estate taxes on its property for the
calendar year 2020 in the amount of P 600,000. In the first week of April

2020, Ohio made unanticipated major repairs to its plant equipment at a cost

of P 2,400,000. It is ascertained that these repairs will benefit operations for

the remainder of the calendar year. How much of these expenses should be
reflected in Ohio's fourth quarter income statement for 2020?

@ P 750,000

O P 950,000
If the total external revenue reported by operating segments constitutes less
than 75% of the entity's revenue:

@ additional operating segments shall be identified as reportable segments even if

they do not meet the quantitative criteria until at least 75% of the entity's revenue

is included in reportable segments

O additional reportable segments shall be identified as operating segments even if

they do not meet the quantitative criteria until at least 75 % of the entity's revenue
is included in reportable segments

C) additional operating segments operating at a profit shall be identified as reportable

segments even if they do not meet the quantitative criteria until at least 75 % of the
entity's revenue is included in reportable segments.

O additional operating segments shall be identified as reportable segments even if

they do not meet the quantitative criteria until more than 75 % of the entity's
ic ineli in rønnr+ahlø coornøni•c

Question 27 1 pts

The criteria or rules applicable to the identification of an operating segment

may apply to two of more overlapping sets of components for which

managers are held responsible. This structure is referred to as a:

O merging form of organization

combination form

O matrix form of organization

O overlapping of function format

On January 1.2020, Builder Co. entered into a P 20 million long-term fixed price contract to construct a factory building.

Builder accounts for this contract under the percentage of completion method at the end of each quarter for 2020.

Relevant data follows:

Percentage of
Quarter Estimated Costs
Completion

1 10%

2 10% 15,000.000

3 25% 19,200.000

4 19,200.000

No work was performed in the second and fourth quarters, What amount should be reported by Builder as income (loss) on
construction contract for the third quarter of 2020?

@ (P 300.000)

O (P 250.000)

O P 500.000
Question 25 1 pts

Not every part of an entity is necessarily an operating segment or part of an

operating segment. An example for this is:

@ a corporate headquarters which may not earn revenues or may earn revenues that
are only incidental to the activities of the entity.

O a product line that engages in business activities from which it may earn revenues
and incur expenses

O a component of an entity which discreet financial information is available

O a division of the company whose operating results are regularly reviewed by the
entity's chief operating decision maker to make decisions about resources to be

allocated to the segment and assess its performance

(Revised Problem - IFRS 8) Newhope Co., a publicly owned company. is subject to the requirements for operating segments
reporting under IFRS 8. In its income statements for the year ended December 31, 2020, Newhope reported the following
financial data:

Revenue P 50.OOO.OOO

Expenses

Net Income P 3,000.000

Supplementary data:

Payroll costs included in expenses above are P 15,000,000. Newhope•s combined identifiable assets of all industry
segments at year-end Of 2020 are P 40,000,000. Reported revenue includes P 30,000.000 sales to external customers.

In its financial statements, Newhope should disclose major customer data if sales to any single customer amount to at least

O P 1,500,000

O P 4.000.OOO

O P 3.000000

Question 23 1 pts

IFRS 8 requires an entity to report interest revenue from interest expense for
each reportable segment unless

O a majority of the segment's revenues are from interest

@ a majority of the segment's revenues are from interest and the chief operating
decision maker relies primarily on net interest revenue for performance assessment
and decision making

O a majority of the segment's revenues are from interest and the interest came from
investments in debt securities

O the interest came from investments in debt securities

 Question 22 1 pts

How much should be the measure of each segment item (segment assets,

segment liabilities, segment revenues, segment expenses) reported?

@ the measure shall be the amount computed following the guidelines set forth in IFRS
8

C) the measure shall be the amount reported to the chief operating decision maker for
the purposes of making decisions about allocating resources to the segment and
assessing its performance

O not given

O the measure shall be the amount prescribed under the provisions of other IAS/IFRS

Question 21 1 pts

An operating segment is a component of an entity that/whose

i. engages in business activities from which it may earn revenues and incur expenses including revenues and expenses

relating to transactions with other components of the same entity

ii. whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performance

iii. main operation is different from the operations of the entire company in general

O i only

O ii only

i, ii and iii

O i and ii
On January 1, 2020, Builder Co. entered into a P 20 million long-term fixed price contract to construct a factory building.

Builder accounts for this contract under the percentage of completion method at the end of each quarter for 2020.
Relevant data follows:

Percentage of
Quarter Estimated Costs
Completion

1 10%

2 10%

3 25%

4 19,200,000

No work was performed in the second and fourth quarters, What amount should be reported by Builder as income (loss) on
construction contract for the second quarter of 2020?

O P 250.000

O P 5,000.000

O P 500,000

Question 19 1 pts

Interim financial reporting should be viewed primarily in which of the following ways?

O as if the interim period were an annual accounting period

O as reporting under a comprehensive basis of accounting other than GAAP

O as useful only if activity is spread evenly throughout the year

as reporting for an integral part of an annual period

Question 18 1 pts

Under the quantitative thresholds of IFRS 8 - Operating Segments, an entity shall report separately information about an

operating segment that meets

i. its revenue (to external customers and intersegment sales) is at least 10 % of the combined revenue (external and internal)
of all operating segments

ii. the absolute amount of its reported profit or loss is at least 10 % of the greater amount of the combined reported profit
of all operating segments that did not report a loss and the combined reported loss of all operating segments that reported
a loss

iii. its assets are at least 10 % of the combined assets of all operating segments

O any of and i iii

O all of i and iii

@ any of i, ii and iii

O all of i, ii and iii

Question 18 1 pts

Under the quantitative thresholds of IFRS 8 - Operating Segments. an entity shall report separately information about an
operating segment that meets

i. its revenue (to external customers and intersegment sales) is at least 10 % of the combined revenue (external and internal)
of all operating segments

ii. the absolute amount of its reported profit or loss is at least 10 % of the greater amount of the combined reported profit
of all operating segments that did not report a loss and the combined reported loss of all operating segments that reported
a loss

iii. its assets are at least 10 % of the combined assets of all operating segments

O any of and i iii

O all of i and iii

O any of i, ii and iii

all of i, ii and iii

Edsa Co. and its divisions are engaged solely in manufacturing operations. The following data pertain to the industries in which operations were conducted for the year

ended December 31, 2020:

Identifiable
Segments Total Revenue Operating Profit
Assets

10.ooo.ooo 1.750.ooo 20.ooo.ooo

8,000.000 1,400.000 17,500,000

c 6.000.ooo 1,200.000 12.500.ooo

3,000.000 550.000 7,500.000

4.250.ooo 675.000 7.ooo.ooo

1.500.ooo 225.000 3000.000

Total 32.750.ooo 5.800.ooo 67,500.000

In its segment information for the year. how many reportable segments does the company have?

Question 16 1 pts

An interim financial report should include, as a minimum, all of the following components, except:

O condensed statement of changes in equity or condensed statement of recognized gains and losses

@ accounting policies and explanatory notes

C) condensed balance sheet and income statements

O condensed cash flow statements

(Revised Problem • IFRS 8) Graf Co. discloses supplementary industry segment information. The following information is available for the year 2020:

Traceable operating
Segment Sales
expenses

5,000,000 3.000000

4.000.000 2.500000

3,000.000 1,750.000

Total

Additional expenses not included above are as follows:

Indirect operating expenses 1,800,000

General and administrative expenses 1200.000

using the accounting procedures adopted by the company in reporting relevant data to the chief operating decision maker under IFRS 8. appropriate common expenses
are allocated to segments based on the ratio of segment sales to total sales.

Segment N's operating profit was

O P 1250.000

P 500.000

O P 650.000

Question 14 1 pts

This view states that each interim period is recognized as separate accounting
period, regardless of the length of time involved. Under this view, the results

of operations for each interim period are determined in essentially the same
way as for an annual period taking into account accruals, deferrals and
estimation that are normally applied for annual periods.

@ discreet view

O entity view

O separate view

O integral view
Question 13 1 pts

An entity shall provide information about the extent of its reliance on its

major customers if

@ revenues from transactions with a single external customer amount to at least 10 %

of an entity's revenues.

O revenues from transactions with a single external customer amount to at least 20 %

of an entity's revenues

C) revenues from transactions with a single external customer amount to at least 50 %

of an entity's revenues.

O not given
Under IFRSis aggregation criteria, two or more operating segments may be
aggregated into a single operating segment if aggregation is consistent with

the core principle of the IFRS, the segments have similar characteristics, and
the segments are similar in which of the following aspects?

i. the nature of the products and services

ii. the nature of the production processes

iii. if applicable, the nature of the regulatory environment, for example,

banking, insurance or public utilities

iv. methods used to distribute their products or provide their services

O i, iii and iv

@ l, II, Ill, IV

O i, ii and iv

O i, ii and iii
 Question 11 1 pts

Often the chief operating decision maker of an entity is its:

C) independent director

O chief executive officer only

O chief operating officer only

@ chief executive officer or chief operating officer

Question 10 1 pts

Apo Co. prepares quarterly interim financial reports. The company sells
electrical goods and normally 5% of customers claim on their warranty. The
provision in the first quarter was calculated at 5 % of sales to date which

amounted to P 10 million. However, in the second quarter, a design fault was

found, and warranty claims were expected to be 10 % for the whole year.
Sales for the second quarter amounted to P 15 million. What would be the
provision charged in the second quarter's interim income statements?

O P 1250,OOO

O P 750,000
Question 9 1 pts

Inventory loss from market decline is reported:

O at year-end as an adjusting entry in the books.

@ in the interim period in which the decline occurs

O equally over the remaining quarters of the year beginning with the quarter the
decline occurred.

O equally over the four quarters of a year.

Question 8 1 pts

Mount Everest Co. operates in the travel industry and incurs costs evenly
throughout the year. Advertising costs of P 5 million were incurred on March
1, 2020, and staff bonuses are paid at year-end based on sales. Staff bonuses
are expected to be around P 40 million for the year. Of that sum,
was properly allocated to the period ending March 31, 2020.

How much of these costs should be included in the company's quarterly

income statement for the quarter ending March 31, 2020?

Question 7 1 pts

Himalayas Co. has historically reported bad debt expense of 5% of sales in

each quarter. For the current year, the company followed the same procedure
in the three quarters of the year However, in the fourth quarter, the company,
in consultation with its external auditor, determined that bad debt expense for

the entire year should be P 450,000. Sales in each quarter of the year were as
follows: first quarter, P 2,000,000; second quarter, P 1,500,000; third quarter,

fourth quarter, P 4,000,000. How much bad debt expense should

be recognized for the fourth quarter?

O P 300,000

O P 400,000

O P 200,000

@ P 150,000
Question 6 1 pts

On June 30, 2021, Mill Co. incurred a P 1,000,000 net loss from disposal of a

business segment. Also, on June 30, 2021, Mill paid P 400,000 for property
taxes assessed for the calendar year 2021. What amount of the foregoing
items should be included in the determination of the net income or loss for
the six-month interim period ended June 30, 2021?

O P 700,000

O P 900,000

Question 5 1 pts

Conceptually, interim financial statements can be described as emphasizing:

timeliness over reliability

O comparability over neutrality

O relevance over comparability

O reliability over relevance

 Question 4 1 pts

For interim purposes, inventories are measured at

O Cost

@ lower of cost or net realizable value

O estimated amount

O the amount resulting from the interim physical count

(Revised Problem - IFRS 8) Newhope Co., a publicly owned company, is subject to the requirements for operating segments

reporting under IFRS 8. In its income statements for the year ended December 31, 2020, Newhope reported the following
financial data:

Revenue

Expenses

Net Income p 3,000,000

Supplementary data:

Payroll costs included in expenses above are P Newhope•s combined identifiable assets of all industry

segments at year-end of 2020 are P 40,000,000. Reported revenue includes P 30,000,000 sales to external customers.

External revenue reported by operating segments must be at least

@ P 37.5009000

O P 12,500.000

O P 15.OOO,OOO
Question 2 1 pts

On January 1, 2020, Ohio Co paid real estate taxes on its property for the calendar year 2020 in

the amount of P 600,000. In the first week of April 2020, Ohio made unanticipated major repairs
to its plant equipment at a cost of P 2,400,000. It is ascertained that these repairs will benefit

operations for the remainder of the calendar year. How much of these expenses should be
reflected in Ohio's second quarter income statement for 2020?

O P950,OOO

O P 2,150,000

@ P 750,000

Question 1 1 pts

Due to a decline in market price in the second quarter, ABC Co. incurred an inventory loss. The
market price is expected to return to previous levels by the end of the year. At the end of the year
the decline had not reversed. When should the loss be reported in ABCs interim income
statement?

in the second quarter only

O in the fourth quarter only

O ratably over the second, third, and fourth quarters

O ratably over the third and fourth quarters