SEMI-FINALS _ PAS 8 and PAS 23

Question 1

Changes in accounting estimates result from new information or new developments and, accordingly, including correction of errors

(TRUE or FALSE)

Answer 1

FALSE

Question 2

Retrospectives application means adjusting the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period as if the new accounting policy had always been applied.

(TRUE or FALSE)

Answer 2

TRUE

Question 3

Two type of accounting changes are change in accounting policy and change in accounting estimate.

(TRUE or FALSE)

Answer 3

TRUE

Question 4

The application of a new accounting policy for transactions, other events or conditions that did not occur previously or were immaterial is an example of changes in accounting policies

(TRUE or FALSE)

Answer 4

FALSE

Question 5

The borrowing costs to be capitalized is always the actual borrowings costs.

(TRUE or FALSE)

Answer 5

FALSE

Question 6

Borrowing costs are capitalizable if they are avoidable

(TRUE or FALSE)

Answer 6

TRUE

Question 7

Fraudulent financial reporting still complies with PFRSs.

(TRUE or FALSE)

Answer 7

FALSE

Question 8

Capitalization of borrowing costs are suspended during a temporary delayed or stopped due to typhoon

(TRUE or FALSE)

Answer 8

FALSE

Question 9

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as cost of that asset.

(TRUE or FALSE)

Answer 9

TRUE

Question 10

Qualifying asset is an asset that necessarily requites substantial amount of expenditures and substantia period of time to get for its intended use or sale.

(TRUE or FALSE)

Answer 10

FALSE

Question 11

Change in accounting policy normally results from a change in measurement basis

(TRUE or FALSE)

Answer 11

TRUE

Question 12

When it is difficult to distinguish a change in accounting policy from change in accounting estimate, the change is treated as change in accounting policy

(TRUE or FALSE)

Answer 12

FALSE

Question 13

Under prospective application, the beginning balance of retained earnings and the previous financial statements are restated

(TRUE or FALSE)

Answer 13

FALSE

Question 14

Borrowing costs (interests or finance costs) are costs incurred in relation to the borrowing of funds includes actual or imputed cost of equity or capital.

(TRUE or FALSE)

Answer 14

FALSE

Question 15

Accounting policies are those adopted by an entity in preparing and presenting its financial statements.

Answer 15

TRUE