6. Which of the following is not considered an appropriate application of offsetting under PAS 1? Presenting a gain from the sale of a noncurrent asset net of a. the related selling expenses. b. Deducting foreign exchange losses from foreign exchange gains and presenting only the net amount. . Deducting unrealized losses from unrealized gains from trading securities and presenting only the net amount. d. Deducting accumulatéd depreciation from the equipment

6. Which of the following is not considered an appropriate application of offsetting under PAS 1? Presenting a gain from the sale of a noncurrent asset net of a. the related selling expenses. b. Deducting foreign exchange losses from foreign exchange gains and presenting only the net amount. . Deducting unrealized losses from unrealized gains from trading securities and presenting only the net amount. d. Deducting accumulatéd depreciation from the equipment

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 23MCQ

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4. Which of the following is not a component of other comprehensive income?a. Unrealized gain on equity investment measured at fair value through other comprehensive incomeb. Revaluation lossc. Unrealized gain from derivative contracts designated as cash flow hedged. Loss from translation of the financial statements of a domestic operation 5. Which of the following is a component of other comprehensive income?a. Unrealized loss from derivative contracts designated as fair value hedge.b. Unrealized loss on debt investment measured at fair value through other comprehensive incomec. Gain from translation of the financial statement of a domestic operation.d. Remeasurements of defined obligation plan, including accrual gain 6. Statement of comprehensive income can be presented asa. Two statements or single statement of comprehensive incomeb. Single statement of comprehensive income onlyc. Two statement of income statement or statement of comprehensive income onlyd. Statement of…
5 Which of the following changes during a period is not a component of other comprehensive income? Group of answer choices a. Foreign currency translation adjustment b. Remeasurement of defined benefit costs c. Unrealized gain on equity instrument measured at fair value d. though other comprehensive income Treasury shares, at cost6 An entity shall present an analysis of expenses using a classification based on Group of answer choices a. the function of expense b. the nature of expense c. either the nature of expense or the function of expense, whichever the entity would prefer to present d. either the nature of expense or the function of expense, whichever provides information that is reliable and more relevant
(Based on Appendix 12B) Reporting an investment at its fair value requires adjusting its carrying amount forchanges in fair value after its acquisition (or since the last reporting date if it was held at that time). Such changesare called unrealized holding gains and losses because they haven’t yet been realized through the sale of thesecurity. If a security is classified as available-for-sale, and an unrealized holding loss is viewed as giving rise toan other-than-temporary (OTT) impairment, how is it reported in the financial statements?
Which of the following costs may not be eligible for capitalization as borrowing costs under PAS 23? * Interest on bonds issued to finance the construction of a qualifying asset. Exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs pertaining to a qualifying asset. Amortization of discounts or premiums relating to borrowings that qualify for capitalization. Imputed cost of equity.
Which of the following is not one of the components of other comprehensive income? a. changes in revaluation surplus b. remeasurements of the net defined benefit liability (asset) unrealized gains and losses on FVPL c. translation gains and losses on foreign operation d. effective portion of gains and losses on hedging instruments on a cash flow hedge
2. According to China accounting standards indicates that goodwill normally is Select one:a. Capitalized and impairments testb. Capitalized and amortizedc. Capitalized d. Amortized
Statement 1: In the sale of a financial asset measured at fair value through OCI, the difference between the selling price and the carrying amount is recorded as a gain or loss on sale of investment. Statement 2: When the fair value of a financial asset measured at fair value through OCI is higher than its carrying amount, an unrealized loss-OCI is debited. A. Only statement 1 is true B. Only statement 2 is true C. Both statements are true D. Both statements are false
Which statement is incorrect regarding reclassification of financial assets? Group of answer choices The effective interest rate and the measurement of expected credit losses are not adjusted as a result of the reclassification from AC measurement category to FVTOCI and vice versa. The effective interest rate is determined on the basis of the fair value of the asset at the reclassification date when an entity reclassifies a financial asset out of FVTPL measurement category. All reclassifications out of FVTOCI measurement category result in ‘reclassification adjustment’. Reclassifications to FVTPL measurement category result to amounts recognized in profit or loss.
Comprehensive income includes items not included in the computation of net income, such as foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. True False
Which statement is true when a debt investment at amortized cost is reclassified to FVOCI? a. All these statements are true. b. The difference between the previous carrying amount and fair value at reclassification date is recognized in other comprehensive income. c. The original effective rate is not adjusted d. The debt investment is measured at fair value at reclassification date.
Which of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costs
true or false ___________ if the fair value of the asset given u[ in exchange transaction that has a commercial substance is not realibly determinable, the asset receive is measured at its fair value, adjusted for any cash received or paid in the exchange. _________ If a party in an exchange transaction recognizes gain, this presupposes a loss on the part of other contracting party _________ PPE acquired by issuing securities are always recognized at the fair value of the securities issued. ___________ A PPE from donation is initially recognized at the fair value of the asset given up