Under IFRS, the amount of capital received in excess of par value would be credited to: a. Retained Earnings. b. Contributed Capital. c. Share Premium. d. Par value is not used under IFRS.
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Under IFRS, the amount of capital received in excess of par value would be credited to:
a.
b. Contributed Capital.
c. Share Premium.
d. Par value is not used under IFRS.
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- Which of the following statements is incorrect? Earnings and profits are conceptually similar to retained earnings. A distribution from earnings and profits in excess of stockholder basis is a nontaxable return of capital. A distribution of appreciated property creates a gain to the corporation. Distributions paid in excess of earnings and profits are nontaxable to the extent of stockholder basis.Which of the following statements is TRUE regarding the equity method? A. The equity method is used for reporting gains or losses for non-strategic investments. B. The investor's share of the associate's dividends declared is reported as revenue. C. The investor's investment in the associate changes in direct relation to the changes taking place in the associate's equity accounts. D. The equity method reports unrealized gains and losses on revaluations to fair value in net income.Which of the following is most likely true regarding payment of dividends? a. Dividends may be paid from legal capital b. Retained earnings are available for dividends unless restricted by contract or by statute c. Unrealized capital is available for any type of dividend d. Capital from donated assets is available for dividends
- When the market value of a company’s portfolio of available-for-sale securities is lower than its cost，the difference should be: a. accounted for as a valuation allowance deducted from the asset to which it relates b. accounted for as an addition in the shareholders’ equity section of the balance sheet c. accounted for as a liability d. disclosed and described in a note to the financial statements but not accounted for.Which of the following does not affect net working capital? purchase of ordinary share capital purchase of inventory on account purchase of equipment on account repayment of long term debt. If common stock is issued for an amount greater than par value, the excess should be credited to Cash. Retained Earnings. Paid-in Capital in Excess of Par. Legal Capital
- What is reflected in the additional paid-in capital account? a. none of the above b. Whichever is higher of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired c. he difference between the market price and the par value when the stock was issued. d. The difference between the market price and the par value when the stock was reacquired e. Whichever is lower of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquiredWhich of the following is NOT correct regarding trading securities * a. Unrealized holding gains or losses are reported in profit or loss b. Share in profit of the investee increases carrying value of the investment c. These are classified as current assets. d. Cash dividends shall be recognized as dividend incomeUnder the capital maintenance concept, which of the following items should be deducted from the increase or decrease in capital? a. Losses on hedging instruments in a cash flow hedge. b. Increase in revaluation surplus. c. Actuarial loss on remeasurement on defined benefit liability. d. Reacquisition of treasury shares.
- an investment in equity instrument may not be classified as a financial asset subsequently measured at a) Fair value through profit or loss b) Amortized cost c) Fair value through other comprehensive income d) none of theseThe share premium and the revaluation reserve are both revenue related, however the retained earnings is capital/equity related -true -galseFor fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? B . Th ey fl ow through retained earnings.