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54 which of the following standards prescribes the

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54.Which of the following standards prescribes the disclosuresrelating to investments in associates, joint ventures, andsubsidiaries?a.PAS 27,Separate Financial Statementsb.PAS 28,Investments in Associates and Joint Venturesc.PFRS 10,Consolidated Financial Statementsd.PFRS 12,Disclosure of Interests in Other Entities
55.A company has a 22% investment in another company thatit accounts for using the equity method. Which of thefollowing disclosures should be included in the company’sannual financial statements?
b.The reason for the company’s decision to invest in theinvestee company.c.The company’s accounting policy for the investment.d.Whether the investee company is involved in anylitigation.
Separate Financial Statements of the Investor [LO 8]56.For the purposes of PAS 28, when an entity preparesseparate financial statements, it shall not account for itsinvestments in associates using
PRACTICE EXAM1.The existence and effect of potential voting rights that arecurrently exercisable or convertible are considered whenassessing whether an entity has significant influence.Inassessing whether potential voting rights contribute tosignificant influence, the entity examines all facts andcircumstances that affect potential rights, includinga.The terms of exercise of the potential voting rights andany other contractual arrangements.b.The intentions of management.
c.The financial ability to exercise or convert thosepotential rights.d.All of the above.
2.Which of the following is incorrect under the equitymethod?

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Term
Summer
Professor
NoProfessor
Tags
Balance Sheet, Generally Accepted Accounting Principles, investee, Accountancy Review Center

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