ca_exm_fa4_2005-03 - CGA-CANADA FINANCIAL ACCOUNTING 4...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
EFA4M05 ©CGA-Canada, 2005 Page 1 of 9 CGA-CANADA FINANCIAL ACCOUNTING 4 EXAMINATION March 2005 Marks Time: 4 Hours Notes: 1. All calculations must be shown in an orderly manner to obtain part marks. 2. Round all calculations to the nearest dollar. 3. Narratives for journal entries are not required unless specifically requested. 4. Assume a December 31 fiscal year end unless specifically stated otherwise. 5. Assume all amounts are material unless directed otherwise. 6. Assume all companies are public companies unless otherwise noted. 7. Assume no companies use differential reporting unless otherwise noted. 30 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 2 marks each a. Which of the following is true regarding the differential reporting section of the CICA Handbook ? 1) Differential reporting pertains only to publicly accountable enterprises whose owners unanimously give their consent. 2) All alternatives selected in accordance with differential reporting must be fully disclosed in the financial statements. 3) Differential reporting permits the use of proportionate consolidation rather than full consolidation where control exists. 4) Differential reporting allows the testing for goodwill impairment every 3 years, rather than annually. b. Great strides have been made towards achieving international accounting harmonization over the last few years. Which of the following has helped to facilitate international accounting harmonization? 1) Harmonization of the tax systems of many countries 2) The U.S. Securities Exchange Commission 3) Adoption in 2003 of an enforcement mechanism to ensure correct application of IASB standards 4) A requirement that European companies report their results using IASB standards c. Which of the following is not an advantage of the use of split accounting for convertible bonds? 1) Improved flexibility, as companies can use either the proportionate or predominant component approach to implement split accounting 2) Separate disclosure of conversion rights, indicating a potential for dilution of shareholdings on conversion for some shareholders 3) A better measure of interest expense on convertible bonds 4) A reflection of the substance of the financial instrument rather than its legal form Continued. ..
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EFA4M05 ©CGA-Canada, 2005 Page 2 of 9 Note: Use the following information to answer parts (d) and (e). On January 1, 2004, JB Company issued 10-year convertible bonds with a face value of $2,000,000 and a
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/08/2010 for the course BUSINESS AIT 707 taught by Professor Raminrezaeinia during the Spring '09 term at Seneca.

Page1 / 18

ca_exm_fa4_2005-03 - CGA-CANADA FINANCIAL ACCOUNTING 4...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online