KHÔNG BẤM

CTRL A
1. On the acquisition of a subsidiary by an investor, purchased goodwill should be:
a.Recognised in the financial statements of either the subsidiary or investor
b.Recorded separately in the financial statements of the subsidiary only
c.Recorded in a consolidation adjusting entry
d.Recognised separately in the financial statements of the investor only

2. At 1 January 20X4 Yogi acquired 80% of the share capital of Bear for $1,400,000.
At that date the share capital of Bear consisted of 600,000 ordinary shares of 50c
each and its reserves were $50,000. The fair value of the non-controlling interest
was valued at $525,000 at the date of acquisition.In the consolidated statement of
financial position of Yogi and its subsidiary Bear at 31 December 20X8, what
amount should appear for goodwill?

a.$1,575,000

b.$630,000

c.$1,050,000
d.$450,000

3. On 1 July 2019, A Ltd pays £870,000 to acquire the entire share capital of B Ltd.
The equity of B Ltd on that date consists of ordinary share capital of £400,000 and
retained earnings of £210,000. The fair value of the non-current assets of B Ltd on 1
July 2019 exceeds their carrying amount by £35,000. Tax rate 20%. The amount paid
for goodwill by A Ltd is:

a.£260,000
b.£232,000
c.£225,000
d.£470,000

4.Which of the following statements is not a key feature of the acquisition method?

a.An acquirer being identified for each business combinationamortization

b.The goodwill being measured as the consideration transferred plus the amount of any NCI interest plus the
fair value of any previously held equity intersest in the acquire less the fair value of the identifiable net assets
acquired.
c.The acquired identifiable net assets being measured at the fair value
d.The cost of business combination being measured at fair value of the net assets received from the
acquiree

5. Which of the following statement(s) is / are correct with regard to preparation of

consolidated financial Statement?

i) To be a subsidiary a parent should hold 100% of its equity shares

ii) Consolidation merely addition together of two Statements of financial position

iii) In consolidation a subsidiary and an associate are treated identically

iv) Consolidated balance sheet excludes assets not owned by the group

a.ii&iii
b.i&ii
c.ii&iv
d.None

6. Applying the acquisition method involves the following steps: (i)Identifying an

acquirer; (ii)Measuring the cost of the combination. (iii)Allocating, at the acquisition
date, the cost of the combination to the assets acquired and liabilities and
contingent liabilities assumed. (iv)Amortising the goodwill.

a.ii – iii
b.i – iv
c.i – iii
d.i – ii
 In relation to goodwill arising from a business combination, which of the following
statements in accordance with IFRS 3 Business Combination

a.
Goodwill is only tested for impairment if circumstances indicate it may be impaired

b.
Goodwill should be measured at cost less accumulated impairment losses

c.
Goodwill should be amortised on a straight – line basis over its useful life
d.
Goodwill should be measured as cost less accumulated amortization

7. The amount of profit attributable to the non-controlling interest in a 90%

subsidiary is generally equal to:

a.10% of the subsidiary's profit before tax

b.10% of the group profit after tax
c.10% of the group profit before tax
d.10% of the subsidiary's profit after tax

8. Which of the following companies would qualify to be regarded as subsidiaries of

Alpha?

i) Beta in which Alpha has 15% votes and a place on the board of directors

ii) Delta in which Alpha has 52% votes but no place on the board of directors

iii) Gamma in which Alpha has 25% shares and two places on the board of directors

iv) Theta in which Alpha holds 100% votes and all places on the board of directors

a.(ii) & (i)

b.ii&iv
c.ii&iii
d.i&iii

9. On 1 January 2013, E Ltd paid £560,000 to acquire 80% of the ordinary share
capital of F Ltd. The equity of F Ltd on that date consisted of ordinary share capital
of £300,000 and retained earnings of £150,000. All of its assets and liabilities were
carried at fair value. On 31 December 2016, the retained earnings of E Ltd and F Ltd
are £1,870,000 and £65,000 respectively. Goodwill arising on consolidation has
suffered an impairment loss of 70% since 1 January 2013. The retained earnings
figure which should be shown in the consolidated statement of financial position at
31 December 2016 is:

a.£1,725,000
b.£1,662,000
c.£1,645,000
d.£1,708,000

10. IFRS 3:

a.Allows either the unitings of interest method, or the acquisition method

b.Allows only the acquisition method or merger method
c.Allows only the acquisition method
d.Allows only the unitings of interest method

11. At 1 January 20X6 Fred acquired 75% of the share capital of Barney for
$750,000. At that date the share capital of Barney consisted of 20,000 ordinary
shares of $1 each and its reserves were $10,000. The fair value of the non-
controlling interest was valued at $150,000 at 1 January 20X6.

In the consolidated statement of financial position of Fred and its subsidiary Barney
at 31 December 20X9, what amount should appear for goodwill?

a.$150,000
b.$870,000
c.$720,000

d.$750,000Applying the acquisition method involves the following steps: (i)Identifying an acquirer;
 12. In relation to goodwill arising from a business combination, which of the
following statements in accordance with IFRS 3 Business Combination

a.Goodwill is only tested for impairment if circumstances indicate it may be impaired

b.Goodwill should be measured as cost less accumulated amortization
c. Goodwill should be measured at cost less accumulated impairment losses
d.Goodwill should be amortised on a straight – line basis over its useful life

13.Which of the following companies would qualify to be regarded as subsidiaries

of Alpha?

i) Beta in which Alpha has 15% votes and a place on the board of directors

ii) Delta in which Alpha has 52% votes but no place on the board of directors

iii) Gamma in which Alpha has 25% shares and two places on the board of directors

iv) Theta in which Alpha holds 100% votes and all places on the board of directors

a.i&iii
b.ii&iv
c.(ii) & (i)
d.ii&iii

14. In accordance with IFRS 10 – Consolidated financial statements, a consolidated

statement of financial position (or note thereto) would not present information
relating to which of the following?

a. Investments in subsidiaries

b. NCI’share of consolidated net assetsUnder IFRS 3, acquired contingent liabilities are:

c. Loans to entities not related to the group
d. Goodwill acquired by the group

15. Which of the following statements is / are correct with regard to accounting for
goodwill?

a. Goodwill needs to be written off as soon as it is identified

b. Goodwill should be amortised over an estimated useful life
c. Goodwill is reported continuously as an asset unless it is impaired
d. Goodwill should be amortised over an estimated useful life not exceeding twenty years

16. On 1 January 2009, P Ltd paid £480,000 to acquire 65% of the ordinary share
capital of Q Ltd. The equity of Q Ltd on that date consisted of ordinary share capital
of £200,000 and retained earnings of £150,000. The fair value of the non-current
assets of Q Ltd on 1 January 2009 exceeded their carrying amount by £250,000.
Goodwill arising on consolidation has suffered an impairment loss of 40% between
1 January 2009 and 31 December 2016. The goodwill figure which should be shown
in the consolidated statement of financial position at 31 December 2016 is:

a. £36,000
b. £151,500
c. £78,000
d. £54,000

17. Negative goodwill should be:

a.Recorded in the income statement

b.Ignore
c.Allocated to non-current assets
d.Matched to future losses

18. On 1 May 20X4, C Ltd paid £430,000 to acquire the entire share capital of D Ltd.
The equity of D Ltd on that date consisted of ordinary share capital of £200,000 and
retained earnings of £90,000. All of its assets and liabilities were carried at fair
value. On 30 April 20X6, the retained earnings of C Ltd and D Ltd are £970,000 and
£115,000 respectively. Goodwill arising on consolidation has suffered an
impairment loss of 25% since 1 May 20X4. Group retained earnings at 30 April 20X6
are:

a.£1,085,000
b.£ 980,000
c.£1,050,000
d.£960,000

19. At 1 January 20X4 Yogi acquired 80% of the share capital of Bear for $1,400,000.
At that date the share capital of Bear consisted of 600,000 ordinary shares of 50c
each and its reserves were $50,000. The fair value of the non-controlling interest
was valued at $525,000 at the date of acquisition.
20. Under IFRS 3, acquired contingent liabilities are:

a.Included in the cost of combination, only if they can be reliably measured

b.Always included in the cost of combination
c.Included in NCI
d.Included in goodwill

21. If the capital and reserves, including fair valuation gain of a subsidiary is £5,400
and the parent acquires the whole of it for £4,000, the difference of £1,400 would be
known as:

a.Badwill
b.Gain on acquisition
c.Goodwill
d.Negative goodwill

22. In the consolidated statement of financial position of Yogi and its subsidiary
Bear at 31 December 20X8, what amount should appear for goodwill?

a.$630,000
b.$1,575,000
c.$450,000
d.$1,050,000

Which of the following statement(s) is / are correct with regard to preparation of consolidated
financial Statement?

i) To be a subsidiary a parent should hold 100% of its equity shares

ii) Consolidation merely addition together of two Statements of financial position

iii) In consolidation a subsidiary and an associate are treated identically

iv) Consolidated balance sheet excludes assets not owned by the group

a.
ii&iv

b.

ii&iii

c.i&ii

d.None

In accordance with IFRS 10 – Consolidated financial statements, a consolidated statement

of financial position (or note thereto) would not present information relating to which of the
following?

a.
Investments in subsidiaries
b.
Goodwill acquired by the group
c.
NCI’share of consolidated net assets
d.
Loans to entities not related to the group