Which of the following should be presented in the

50. Which of the following should be presented in the statement of changes in equity?
a. For each component of equity, the effects of retrospective restatement recognized in
accordance with PAS 8.
b. For each component of equity, an analysis of other comprehensive income by item.
c. The amount of dividends recognized as distributions to owners during the period and
the related amount of dividends per share.
d. All of these.
51. Which of the following will not change total equity?
52. The following information relate to an entity’s equity transactions for the year ended
December 31, 2021:
• Received P100,000 from the issuance of a call option that gives the holder the right
to purchase 10,000 shares of the entity for a fixed price of P100 per share. Fair
value of the option at December 31 is P110,000.
• On December 31, 2021, the entity enters into a forward contract that requires the
entity to repurchase its own shares for P60,000 on December 31, 2022. No
consideration is paid or received at the inception of the contract. The market
interest rate is 10% on December 31, 2021 and expected to be 12% on December
31, 2022.
The net increase of these transactions on the entity’s equity for the year ended
December 31, 2021 is
53. The following balances are shown in the shareholders' equity of Vaz Company on
Dec. 31, 2020:
Preference share capital, P10 par,
100,000 shares P1,000,000
Ordinary share capital, P10 par,
500,000 shares, 5,000,000
Share premium - preference 50,000
Share premium – ordinary 200,000
Retained earnings 100,000
Total P6,350,000

EXCEL PROFESSIONAL SERVICES, INC.
During 2021, the following transactions pertaining to the shareholders' equity were
completed:
• Retirement of 5,000 preference shares at P9 per share.
• Purchase of 5,000 ordinary shares at P12 per share to be held as treasury shares.
• Share split, ordinary, 2 for 1.
• Reissue of 2,000 treasury shares at P8 per share.
• Profit for 2021, P300,000.
The total retained earnings at Dec. 31, 2021 is
Page 15 of 19 FAR.FinPB5.21
54. PAS 10 states that if a dividend is declared after the reporting period but before the
financial statements are authorized for issue, the dividend is:
a. Recognized as a liability at the reporting period.
b. Not recognized as a liability at the reporting period.
c. Recorded as a direct reduction of equity at the reporting period.
d. Recorded as a reduction against the asset ‘cash’ at reporting period.