In the separate statement of financial position of

58. In the separate statement of financial position of the branch, the home office account shall be presented
as
a. Asset account
b. Liability account
c. Equity account
d. Income account
59. Which of the following transactions will increase the normal balance of the home office account in the
book of the branch?
60. Which of the following transactions will decrease the normal balance of the Pasay branch account in the
book of the home office?
61. Which of the following is the best reason why the net income reported by the branch is less than the net
income computed by the home office concerning the branch’s operation?

VI. PFRS 3: Business Combinations
62. Under IFRS 3, how shall an entity account for each business combination?
a. Applying pooling of interest method
b. Applying equity method
c. Applying acquisition method
d. Applying cost method
63. Under IAS 27, which of the following statements concerning the determination of the acquirer in a
business combination is correct?
64. IFRS 3 defines it as the date on which the acquirer obtains control of another entity. 65. Under IFRS 3, what is the initial measurement of the identifiable assets and liabilities assumed in a
business combination?