a. General model b. Premium Allocation Approach c. a or b d. Not accounted for under PFRS 17 2. How does Entity C account for the insurane a. General model b. Premium Allocation Approach c. a or b C. d. Modification to general model for reinsL

a. General model b. Premium Allocation Approach c. a or b d. Not accounted for under PFRS 17 2. How does Entity C account for the insurane a. General model b. Premium Allocation Approach c. a or b C. d. Modification to general model for reinsL

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 7GI: If a seller enters into more than one contract with a specific customer, when should the contracts...

See similar textbooks

Related questions

Q: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can…

A: Quoted price ( Unadjusted ) means price without adjustments.

Q: How should (i) a change in calculating the provision for doubtful accounts, and (ii) change in…

A: The provision for doubtful accounts is accounting estimates that change on a yearly basis. It is…

Q: process of incorporating

A: Option a is wrong because one of the options is correct. Option b is wrong because de-recognition…

Q: II. Supply the appropriate initial and subsequent measurement of the following financial statement…

A: 47. E. Present value: the lease receivable is initially calculated as the present value of the lease…

Q: Which of the following statements is true? a. Borrowing costs are generally expensed except when…

A: Accounting principles are general rules and guidelines that the company follows while recording and…

Q: Which of the following concept states that "the organization should account for all possible…

A: Owner's equity includes the capital invested by the owners of the company and the retained earnings.…

Q: s)/problem(s) faced by SSB by referring to the MFRS 137 Provisions, Contingent Liabilities and…

A: Contingent liabilities refer to the liability that arises to an entity out of an unexpected future…

Q: Research and development costs are: a. expensed under GAAP. b. expensed under IFRS. c. expensed…

Q: A currently maturing obligation of the entity is classified on the SFP as a?

A: Here SFP stands for statement of financial position. In a SFP different assets and liabilities are…

Q: ests of interested pa e amounts in the ev formation and othe goods and services

A: The term entrepreneurship refers to starting a business by taking all the risks on the own in the…

Q: evenue recognition under IFRS 15 is based on Transfer of title Payment of consideration Transfer…

A: Solution: Revenue recognition under IFRS 15 is based on "Transfer of risk and rewards of ownership".…

Q: 81 Which of the following is correct? I. Direct origination costs – added to principal II.…

A: Origination Fees: It is the fees charged by the bank against the borrower for the creation of loan.…

Q: In accordance with PFRS 15, how should volume rebates and/or discounts on goods or services applied…

A: Discount refers to the reduction provided in the sale price of some goods and services by the seller…

Q: Under PFRS 15, how does a consignor satisfy its performance obligation under consignment contract?…

A: SOLUTION- EXPLANATION- A PERFORMANCE OBLIGATION IS SATISFIED BY TRANSFERRING A PROMISED GOOD OR…

Q: Determine if this shall result in recognition of liabilities 12. violation of the terms of a…

A: As per IAS 37 of IFRS Provisions, contingent liabilities and contingent assets A Provision is a…

Q: g balance method of C

A: The formula of declining balance method as, Depreciation per annum as, = (Net Book Value - Residual…

Q: under the conceptual framework for internationai financial reporting a non-contraling interest fits…

A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…

Q: Which of the application of of a. Presenting a the related s b. Deducting fe gains and pr c.…

A: Presentation of Financial Statements PAS 1 describes the basis for presenting the general purpose…

Q: Partial satisfaction of a multiple performance obligation is reported on the balance sheet asa.…

A: Performance obligation: A performance obligation is a promise made by a seller to transfer the goods…

Q: en received; instead, the prei od of the policy. appliances, approved to insur ar from the use of a…

A: Given: To find out the correct statement as,

Q: loàn consolidated Balance Sheet should show (hint: your B/S should balance: a+b-c3d+e+f+g): a.…

A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…

Q: Which one of the following category prepaid expenses belong to?

A: Current assets are the assets of the company that are expected to be consumed through standard…

Q: 3. Which of the following reclassifications of financial assets is permitted under PFRS 9? a.…

A: The following statements are evaluated for their correctness as per the given information.

Q: 49. Recording assets at their acquisition cost (entry value), rather than at their net selling price…

A: Historical cost basis: It is the standard by which a business records the value of an asset on its…

Q: Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the…

A: Revenue recognizes steps: Identify the contract with a customer Identify the performance…

Q: Required: Discuss whether the provision has been accounted for correctly under IAS 37 Provisions,…

A: IAS 37 Provisions , contingent liabilities , and contingent assets defines each item as under.…

Q: Under PFRS 15, what is the measurement of consignment sales revenue? a. realizable value of…

A: Consignment revenue: Consignment is a trade contract where goods are left in the custody of…

Q: a. to determine the ACA for the joining entity's asset Incorrect b. to spread the ACA over the…

A: TCSA (Tax collected at Source of Assets) and ACA (Affordable Care Act) are two tax…

Q: 1. Statement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the…

A: According to IFRS 3 : It includes transaction or an event in which acquirer obtains control over…

Q: Reversing entries maybe used in unearned income when the original collection is recorded as a.…

A: Answer When unearned revenues are recorded as liabilities then an unearned revenue account is…

Q: If a contract modification does not create a separate contract, it is accounted for using either a…

A: The correct answer is “either a cumulative catch-up adjustment or a prospective approach”.

Q: Under PFRS 15, what is the measurement of consignment sales revenue? A. Realizable value of…

A: The PFRS 15 states the revenue measured at Fair value consideration received or receivable.

Q: When the entity select the amount that is most likely to be received considering the range of…

A: Most likely amount approach of determining variable consideration is that method in which one most…

Q: Th e assumption that an entity will continue to operate for the foreseeable future is called: B .…

A: The assumption that an entity will continue to operate for the foreseeable future is called Going…

Q: True or False Pls indicate if the statements are True or False. 1. All allocated excess/purchase…

A: 1. Ans - True As all allocated excess/Purchase differentials are Amortized and it is allocated…

Q: I. The amount of borrowing costs that an entity capitalizes during a value, the carrying amount is…

A: As per IND AS 23, borrowing cost eligible for capitalization= Borrowing cost incurred- investment…

Q: 26. Which of the following measurement methods are acceptable under IFRS 9? O Amortised cost and…

A: As per IFRS 9 Financial Instruments, Financial assets can be measured at: Amortized cost Fair value…

Q: With reference to IAS 37, identify the correct statements from the following: I A contingent asset…

A: Contingent assets refer to the assets that are a result of past event and inflow from those assets…

Q: 1. A fixed amount added to the premium of a given poli regardless of policy size is known as O hl no…

A: A policy fee is a one time charge which is added to the premium and does not get affected by the…

Q: tatement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the…

A: While Acquiring Assets and Liabilities Acquirer does not recognize contingent assets acquired in a…

Q: Which of the following is not affected by a change in interest expense? a. gross margin b.…

A: The question is based on the concept of Financial Accounting.

Q: The alternative treatment in reporting Subscription Receivable is a. deduction to Current Assets…

A: Subscription receivable is a revenue receivable that is an asset for the company.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use the following information for the next three questlons: Entity A, a manufacturing entity, obtains insurance against product liability from Entity B, an insurance company. Entity B then cedes the insurance contact with Entity C, another insurance company. 1. How does Entity B account for the insurance contract with Entity A? General model Premium Allocation Approach Ca or b d. Not accounted for under PFRS 17 How does Entity C account for the insurande contract ceded by Entity B? General model Premium Allocation Approach a or b d. Modification to general model för reinsurance contracts held 3 How does Entity B account for the insurance contract ceded to Entity C General modet Premium Allocation Approach a or Modification to geheral model for reinsurance contracts held
Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?A. using the modified version of the general model applicable for onerous insurance contractsB. using the general modelC. using a modified version of (a) or (b) applicable to reinsurance contracts heldD. using the premium allocation approach
Which document typically triggers the process of recording a liability? a. purchase requisition b. purchase order c. receiving report d. supplier’s invoice
Which of the following is not a condition in identifying the contract with the customer as per IFRS 15? The entity and the customer have approved the contract and are committed to perform their contractual obligations It is certain that the entity will collect the consideration to which it is entitled Each party's rights with regard to the goods or services concerned can be identified The payment terms can be identified EN 2时 6 l
Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable
S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17. S3: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. All statements are incorrect Only S3 is correct Only S3 is incorrect Only S2 is incorrect Only S2 is correct All statements are correct Only S1 is incorrect Only S1 is correct
S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17. S3: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. a. Only S3 is incorrectb. All statements are correctc. Only S2 is correctd. Only S3 is correcte. Only S1 is incorrectf. Only S2 is incorrectg. All statements are incorrect h. Only S1 is correct
S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17.S3: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. Only S1 is correct O Only S2 is correct O Only S3 is correct O Only S1 is incorrect O Only S2 is incorrect O All statements are incorrect Only S3 is incorrect All statements are correct
_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract
S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17.53: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. O Only S3 is incorrect O Only S3 is correct All statements are incorrect Only S1 is incorrect Only S1 is correct Only S2 is incorrect O Only S2 is correct All statements are correct
Step 1 of the "five-step model" states that certain conditions must be satisfied before an entity can account for a contract with a customer. Which of the following is not one of these conditions? Oa The entity and the customer have approved the contract and are committed to perform their contractual obligations. O b. The payment terms can be identified. O citis certain that the entity will collect the consideration to which it is entitled. Od. Each party's rights about the goods or services concerned can be identified.
Which of the following is not a condition in identifying the contract with the customer as per IFRS 15? a- Each party's rights with regard to the goods or services concerned can be identified b- It is certain that the entity will collect the consideration to which it is entitled c- The entity and the customer have approved the contract and are committed to perform their contractual obligations d- The payment terms can be identified