1.

There may be different classes of ordinary shares, but ordinary shares within a class do
not all have the same dividend rights. FALSE

2. If the preference shares are cumulative , two year dividend is deducted from profit or loss
wether declared or not. FALSE (it shoud be 1 year)

3. Earnings per share is not computed on other comprehensive income and total
comprehensive income. TRUE

Interim period is a financial reporting period shorter than a full financial year. TRUE

The SEC and PSE require certain entities to provide quarterly financial reports within 50 days
after the end of each of the first three quarters. FALSE (45 days)

The two views on interim reporting are integral view and discrete view. TRUE

4. The carrying amount of an asset shall not exceed it's recoverable amount. If the carrying
amount of an asset exceeds it's recoverable amount, the asset is impaired. TRUE

5. Recoverable amount is the higher of the asset's fair value less costs of disposal and value
in use. TRUE

6. The objective of PAS 36 is to improve the comparison of the performance of different

entities in the same period and of the same entity in different accounting periods by
precribing methods for determining the number of shares to be included in the calculation
of earnings per share and other amounts per share and by specifying their presentation.
FALSE (PAS 33)

7. PAS 38 applies to all tangible, intangible, and financial assets except inventories, assets
arising from construction contracts, deferred tax assets, and etc. FALSE (PAS 36)

A provision for plant dismantlement can be used to absorb environmental pollution claims or
warranty payments.
FALSE

Future events that affect the amount required to settle an obligation shall not be reflected in
the amount of a provision where there is a sufficient evidence that they will occur.
FALSE
Where the effect of the time value of money is material, the amount of provision shall be the
present value of money and the risk specific to the liability.
TRUE

When no reliable estimate can be made, no liability is recognized.

TRUE

A provision may be the equivalent of an estimated liability or a loss contingency that is

accrued because it is both probable and measurable.
TRUE

A contingent asset is only disclosed when it is probable.

TRUE

If an entity has an onerous contract, the present obligation under the contract shall be
recognized and measured as a provision.
TRUE

Intangible asset is an identifiable non-monetary asset with physical substance.

FALSE (without physical substance)

Intangible asset must be identifiable.

TRUE

Development means original and planned investigation undertaken with the prospect of
gaining new scientific or technical knowledge or understanding.
FALSE (research)