ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau. ĐỀ TIẾNG ANH TỔNG HỢP. Vì môn này rất khó nên cần ôn kỹ, làm bài tập nhiều. Chú ý ở những phần ít được học ở chương 4 trở về sau.
Trang 11.Which of the following companies would qualify to be regarded as subsidiaries of Alpha? (a) Beta in which Alpha has 15% votes and a place on the board of directors; (b)Delta in which Alpha has 52% votes but no place on the board of directors; (c) Gamma in which Alpha has 25% shares and two places
on the board of directors; (d) Theta in which Alpha holds 100% votes and all places on the board of directors
A a & b
B b & d
C a & c
D b & c
ANSWER: B
2.Company A owns 80% Company B which owns 70% Company C How many percent does non-controlling interest account for in Company C?
A 20%
B 30%
C 44%
D 50%
ANSWER: C
3 Investor has significant influence to participate in the financial and operating policy decisions of the investee The investee is a/an of the investor?
A Subsidiary
B Joint venture
C Associate
D Long term investments
ANSWER: C
4 In which of these cases is B not a subsidiary of A?
A A owns 45% of the voting rights of B and has an agreement with a 15% shareholder C to vote for his right
B A owns 45% of the voting rights of B, while all other shares are distributed over numerous shareholders, with no other shareholder having more than 1% of the share
C A owns 55% of the shares of B and another shareholder C has 45% of the shares of B, where A has written a substantive call option to C for 10% of the shares of B
D A owns 35% of the shares of B and owns 100% of the shares of C, where C has 25% of the shares in
B
ANSWER: C
5 Which of the following does not result in a business combination for Pryor Ltd.?
A Pryor acquired all the assets of Burchak Ltd
B Pryor acquired an operating division of Nyle Ltd
C Pryor made a basket purchase of 40% of Neilly Ltd.'s assets
D Pryor acquired 65% of Kelly Co.'s voting shares
ANSWER: C
6 Which of the following would qualify a company to be regarded as a parent of another?
A A parent should control the majority of the votes at subsidiary’s shareholders’ meetings
B A parent should own majority shares in the subsidiary
C A parent it and its subsidiary must both be in the same line of business
D A parent and the subsidiary should both have the same persons as their director
ANSWER: A
Trang 27 IFRS 10- Consolidated financial statement sets out how to determine whether one entity has control over another entity Which of the following statements is in accordance with either IFRS 10 definition control or with the guidance prescribed to help identify whether control exists over another entity?
A The investor must be the only party that receives variable returns from the other entity
B The investor must be have greater than 50% of the voting rights in the other entity
C The investor must be represented on the board of directors or governing body of the other entity
D The investor must have existing rights that give the current ability to direct relevant activities of the other entity
ANSWER: D
8 Which of the following statements is consistent with the principle of control as defined by IFRS 10
Consolidated Financial Statements?
A The investor must be exposed to a return from the investee
B The investor has the ability to use its power over the investee to affect the amount of the returns from the investee
C An investor’s power over investee relates to its ability to determine the amount of variable returns received from investee
D If two or more investors have existing rights to direct different relevant activities, no investors can have control over the investee
ANSWER: C
9 Control is the power:
A To govern the financial and operating policies of an undertaking
B To control more than 40% of the ordinary shares
C Appoint board members in proportion to your shareholding
D To control more than 50% of net assets
ANSWER: A
10 Which of the following companies would qualify to be regarded as subsidiaries of Alpha? (i)Beta in which Alpha has 15% votes and a place on the board of directors; (ii) Delta in which Alpha has 52% votes but no place on the board of directors; (iii) Gamma in which Alpha has 25% shares and two places
on the board of directors; (iv) Theta in which Alpha holds 100% votes and all places on the board of directors
A (ii) & (i)
B ii&iii
C ii&iv
D i&iii
ANSWER: C
11 Which of the following would qualify a company to be regarded as a parent of another?
A A parent and the subsidiary should both have the same persons as their directors
B A parent should own majority shares in the subsidiary
C A parent it and its subsidiary must both be in the same line of business
D A parent should control the majority of the votes at subsidiary’s shareholders’ meetings
ANSWER: D
12 The power of an investor over an investee is significant influent, exhibiting that
A The investor can appoint a majority of investee’ board of director
B The investor can participate in the policy making process of the investee
C The investor owns more than 20% of the investee’s equity capital
D The investor owns more than 50% of the investee’s equity capital
ANSWER: B
Trang 313 Which of the following items is the best consideration for an investor’s power over an investee?
A Absolute voting right
B Relative voting right
C Absolute ownership ratio
D Relative ownership ratio
ANSWER: B
14 IFRS 10 provides a definition of control and identifies three separate elements of control Which one
of the following is not one of these elements of control?
A Power over the investee
B The power to participate in the financial and operating policies of the investee
C Exposure to, or rights to, variable returns from its involvement with the investee
D The ability to use its power over the investee to affect the amount of the investor's returns
ANSWER: B
15 Under which of the following circumstances does an entity lose significant power over the investee?
A When it loses the power to participate in the financial and operating policy decisions of that investee
B When it holds less than 10% of voting rights of the investee
C When its investment ceases to be an associate or a joint venture
D Any of the above
ANSWER: A
16 If an entity holds, directly or indirectly, of the voting power of the investee, it is
presumed that the entity has significant influence, unless it can be clearly demonstrated that this is not the case
A 10 per cent or more
B 20 per cent or more
C 25 per cent or more
D 50 per cent or more
ANSWER: B
17 A joint arrangement can be either a …
A Joint venture or joint subsidiary
B Joint operation or a joint venture
C Joint operation or joint entity
D Joint entity or joint subsidiary
ANSWER: B
18 Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the _ of the parties sharing control
A Highest level of professionalism
B Unanimous consent
C Collective judgement
D Unbiased decisions
ANSWER: B
19 AB owns 60% of the equity shares of CD and 30% of the equity shares of EF CD also owns 30% of the equity shares of EF All of the shareholdings were acquired on the same date Which one in respect
of the consolidated financial statements of the AB group is true?
A EF is an associate of the group as both AB and CD can exercise significant influence via their 30% holdings
B EF is an associate of the AB group because the effective interest of AB in EF’s results is 48%
Trang 4C 48% of EF’s post-acquisition reserves should be recognized in the consolidated reserves of the AB group
D An indirect holding adjustment would be applied in the calculation of goodwill based on 52% of CD’s investment in EF
ANSWER: C
20 IAS 28 shall be applied by all entities that are investors with an investee
A Joint control of
B Significant influence over
C Control over
D A or B
ANSWER: D
21 According to IFRS 10, the basis for consolidation is …
A Regulatory requirements
B Size of share capital of the investee
C Control
D Number of employees
ANSWER: C
22 According to IFRS 10, which types of entities are defined as exceptions when consolidating particular subsidiaries?
A Real Estate
B Investment
C Contruction
D Insurance
ANSWER: B
23.In relation to goodwill arising from a business combination, which of the following statements in
accordance with IFRS 3 Business Combination
A Goodwill should be measured as cost less accumulated amortization
B Goodwill should be amortised on a straight – line basis over its useful life
C Goodwill should be measured at cost less accumulated impairment losses
D Goodwill is only tested for impairment if circumstances indicate it may be impaired
ANSWER: C
24.Which of the following statements is not a key feature of the acquisition method?
A An acquirer being identified for each business combination
B The acquired identifiable net assets being measured at the fair value
C The cost of business combination being measured at fair value of the net assets received from the acquiree
D The goodwill being measured as the consideration transferred plus the amount of any NCI interest plus the fair value of any previously held equity intersest in the acquire less the fair value of the
identifiable net assets acquired
ANSWER: C
25 IFRS 3:
A Allows either the unitings of interest method, or the acquisition method
B Allows only the unitings of interest method
C Allows only the acquisition method
D Allows only the acquisition method or merger method
ANSWER: C
Trang 526.A combination may involve: (i) The purchase of the equity of another undertaking; (ii) The purchase
of all the net assets of another undertaking; (iii) The assumption of the liabilities of another undertaking (iv)The purchase of some of the net assets of another undertaking, that together form one or more businesses (v)The purchase of assets from a firm in liquidation
A i – v
B i – iii
C ii – iii
D i – iv
ANSWER: D
27.Applying the acquisition method involves the following steps: (i)Identifying an acquirer; (ii)Measuring the cost of the combination (iii)Allocating, at the acquisition date, the cost of the combination to the assets acquired and liabilities and contingent liabilities assumed (iv)Amortising the goodwill
B i – ii
C i – iii
D ii – iii
E i – iv
ANSWER: B
28.According to a survey of CFOs, what is the main reason for mergers?
A Empire building
B Operating synergies
C Market power
D Risk reduction
ANSWER: B
29.The objective of IFRS 11 is to by entities that have an interest in joint arrangements
A Regulate accounting policy to be applied
B Establish principles for financial reporting
C Achieve uniformity in the accounting policies used
D Unify the accounting techniques used
ANSWER: B
8.What entities shall apply IFRS 11?
A Only those entities that have joint control over a joint arrangement
B Only those entities that have significant influence over a joint arrangement
C Only those entities that are a party to a joint arrangement
D All of the above
ANSWER: C
30.Which of the following statement(s) is / are correct with regard to preparation of consolidated financial Statement? (a)To be a subsidiary a parent should hold 100% of its equity shares; (b)Consolidation merely addition together of two Statements of financial position; (c)In consolidation a subsidiary and an associate are treated identically; (d)Consolidated balance sheet excludes assets not owned by the group
A b & c
B none
C a & b
D a & b
ANSWER: B
Trang 631.Which of the following statement(s) apply when consolidating statements of financial position: (a) All inter-company balances should be cancelled; (b) The group share of the whole of subsidiary’s profit
is included within group profit; (c) Inter company profit should be eliminated unless it is realised by sale
to an outsider; (d) Subsidiary’s asset values need to be updated at the end of each accounting period
A a & c
B a & b
C a & d
D b & c
ANSWER: A
32.With regard to preparing consolidated statements of financial position which of the following statements is / are correct? (a) the consolidated statement of financial position reports only parent’s goodwill; (b) Any unrealized profit made by a subsidiary should be eliminated from its profit; (c) An amount owed to each other within the group needs to be cancelled; (d) Only the group portion of any unrealised profit need be eliminated
A a & b
B a
C c
D b & c
ANSWER: D
33.Which of the following statements are incorrect with regard to preparation of a consolidated statement
of financial position? (a) Gain on fair valuation of a subsidiary’s asset is a pre-acquisition profit; (b) Non controlling interest does not deserve any portion of fair valuation gain; (c) If an asset is not reported in the subsidiary’s ledger it need not be fair valued; (d) Gain on fair valuation of subsidiary’s asset inflates the cost of goodwill
A a , c & d
B a, b & c
C c & d
D b, c & d
ANSWER: D
34.When preparing a consolidated statement of financial position any profit made by one member of the group against another should be eliminated unless it has been realised by disposal to some one outside the group Which of the following is / are the reason(s) for this? (a) Because an entity cannot make a profit against its own self; (b) Because it is fashionable to do so; (c) Because subsidiary’s assets needs
to be reported at the amount each cost the group; (d) Because the unsold goods may have to be returned
to the party purchased from
A c & d
B a & c
C a, b & c
D b, c & d
ANSWER: B
35.Though a subsidiary is only partly owned, the whole of the subsidiary’s sales, cost of sale and expenses are aggregated with those of the parent to report the group’s income and expenses Which one
or more of the following is/ are the justification for this? (a) That is how it is expected to be done, (b) That is a legal requirement, (c) Otherwise the group would appear to be doing poorly with adverse effect
on share price, (d) To report the income generated by and expenses incurred by the group as a whole
A a & c
B d
Trang 7C b
D b & d
ANSWER: B
36.In accordance with IFRS 10 – Consolidated financial statements, a consolidated statement of financial position (or note thereto) would not present information relating to which of the following?
A Investments in subsidiaries
B Goodwill acquired by the group
C Loans to entities not related to the group
D NCI’share of consolidated net assets
ANSWER: A
37.Which of the following statement(s) is / are correct with regard to preparation of consolidated financial Statement? (i) To be a subsidiary a parent should hold 100% of its equity shares; (ii)Consolidation merely addition together of two Statements of financial position; (iii) In consolidation
a subsidiary and an associate are treated identically; (iv) Consolidated balance sheet excludes assets not owned by the group
A None
B i&ii
C ii&iii
D ii&iv
ANSWER: A
38.Which of the following statement(s) apply when consolidating statements of financial position:(i)All inter-company balances should be cancelled; (ii) The group share of the whole of subsidiary’s profit is included within group profit; (iii) Inter company profit should be eliminated unless it is realised by sale
to an outsider; (iv) Subsidiary’s asset values need to be updated at the end of each accounting period
A i & iii
B i & ii
C ii & iv
D ii & iii
ANSWER: A
39.With regard to preparing consolidated statements of financial position which of the following statements is / are correct?(i) the consolidated statement of financial position reports only parent’s goodwill;(ii) Any unrealized profit made by a subsidiary should be eliminated from its profit;(iii) An amount owed to each other within the group needs to be cancelled;(iv) Only the group portion of any unrealised profit need be eliminated
A i & iii
B i & ii
C ii & iii
D iii & iv
ANSWER: C
40.Which of the following statements are incorrect with regard to preparation of a consolidated statement
of financial position? (i) Gain on fair valuation of a subsidiary’s asset is a pre-acquisition profit, (ii) Non controlling interest does not deserve any portion of fair valuation gain; (iii) If an asset is not reported in the subsidiary’s ledger it need not be fair valued, (iv) Gain on fair valuation of subsidiary’s asset inflates the cost of goodwill
A ii & iii
B ii, iii & iv
C i & ii & iii
Trang 8D i & iv
ANSWER: B
41 With regard to preparing consolidated income statement which of the following statements are correct?(i) Only the group portion of subsidiary’s sales, cost of sales and expenses are included (ii)Non controlling interest is identified immediately after consolidating operating profit (iii)Consolidated movement of equity includes only the parent company’s dividend (iv)Only the group portion of the subsidiary’s post acquisition profit in brought forward in the consolidated movement of equity
A iii & iv
B i & ii
C ii & iii
D i & iv
ANSWER: A
42.Though a subsidiary is only partly owned, the whole of the subsidiary’s sales, cost of sale and expenses are aggregated with those of the parent to report the group’s income and expenses Which one
or more of the following is/ are the justification for this?
C Otherwise the group would appear to be doing poorly with adverse effect on share price
D To report the income generated by and expenses incurred by the group as a whole
ANSWER: D
43.For identifying the group profit for the current year at which of the following points is the profit relating to non controlling interest removed
A After identifying the profit for the year after tax
B After identifying the net profit before tax
C After identifying the gross profit
D After identifying the operating profit
ANSWER: A
44.In acquiring Au Ltd., Ag Ltd included a provision for contingent consideration The value of this consideration will be determined by an event that will occur after the acquisition date How should the recognition of the amount of the contingency be accounted for?
A As a gain/loss on comprehensive income statement
B As an adjustment to the share capital
C As an adjustment to retained earnings
D As an adjustment to goodwill
ANSWER: D
45.Under IFRS 3, acquired contingent liabilities are:
A Always included in the cost of combination
B Included in the cost of combination, only if they can be reliably measured
C Included in goodwill
D Included in NCI
ANSWER: B
46.The cost of a combination includes: (i)Liabilities incurred or assumed by the acquirer.; (ii)Professional fees paid to accountants (iii)Legal advisers’ fees (iv)Valuers’ fees (v)General administrative costs:
A I
B ii – iii
C i – iv
Trang 9D i – v
ANSWER: A
47.For an adjustment to the cost of the combination contingent on future events, the acquirer must include the amount of that adjustment in the cost of the combination at the acquisition date, if the adjustment is:
A Probable and can be measured reliably
B Certain and exactly measurable
C Payable within one year
D Receivable within one year
ANSWER: A
48.When preparing a consolidated statement of financial position the identifiable non monetary assets
of the subsidiary need to be fair valued for which of the following reason / reasons?(i) To inform the acquired company what its assets are worth in the market; (ii) To comply with the practice followed over the years; (iii) To report each of the subsidiary’s assets at what it cost the group to acquire; (iv) To identify the amount paid for goodwill as the residual not attributed to other assets
A ii & iii;
B ii & iv;
C iii & iv
D i & iii
ANSWER: C
49.When preparing a consolidated Statement of financial position the identifiable non monetary assets
of the subsidiary need to be fair valued Which of the following assets of the subsidiary need to be fair valued? (i) Land and building appearing in the books of the subsidiary; (ii) Trade receivables reported
on the subsidiary’s balance sheet; (iii) Brand name the cost relating to which the subsidiary has already fully written off; (iv) Inventory reported on the subsidiary’s statement of financial position
A i, iii & iv
B ii & iii & iv
C i, ii & iii
D ii & iii
ANSWER: A
50.Which accounting method is applied for investment in subsidiaries on separate finacial statements?
A Cost method
B Equity method
C Consolidation method
D Acquisition method
ANSWER: A
51.An investor issues it’s shares to acquire an investee’s share The cost of this investment is priorly measured via
A The norminal value of investor’s shares issued
B The norminal value of investee’s shares acquired
C The fair value of investor’s shares issued
D The fair value of investee’s shares acquired
ANSWER: C
52.When a parent entity has previously held an investment in a subsidiary prior to gaining control the effect on the consolidation process is as follows:
A There is no impact
B The change in the fair value of the previously held interest is recognised in profit or loss
Trang 10C The change in the fair value of the previously held interest is recognised in retained earnings
D The change in the fair value of the previously held interest is recognised in other comprehensive income
ANSWER: B
53.Which of the following is not an example of an intra-group balance?
A A loan made by one subsidiary to another
B A trade receivable owing to a subsidiary by an individual who is one of its customers
C A loan made by a parent company to a subsidiary
D A trade payable owing to a subsidiary by its parent company
ANSWER: B
54.When preparing a Consolidated Income Statement, inter-company transactions are cancelled Which one or more of the following would you say is the reason for this step? (a) That is how it is expected to
be done (b) Otherwise group earnings can be inflated by one within the group earning from another, (c) Otherwise the same amount is double counted both as an income and expense, (d) Failure to do so would
be bad for the group image
A a & c
B b & c
C b & d
D c & d
ANSWER: B
55.When preparing a consolidated statement of financial position any profit made by one member of the group against another should be eliminated unless it has been realised by disposal to some one outside the group Which of the following is / are the reason(s) for this? (i) Because an entity cannot make a profit against its own self; (ii) Because it is fashionable to do so; (iii) Because subsidiary’s assets needs
to be reported at the amount each cost the group; (iv) Because the unsold goods may have to be returned
to the party purchased from
A i & ii
B ii & iii
C iii& iv
D i & iii
ANSWER: D
56.Which of the following is not an example of an intra-group balance?
A A loan made by one subsidiary to another
B A trade receivable owing to a subsidiary by an individual who is one of its customers
C A loan made by a parent company to a subsidiary
D A trade payable owing to a subsidiary by its parent company
ANSWER: A
57.A consolidation worksheet adjustment to eliminate the effect of interest revenue and interest expense relating to intragroup advances has the following tax effect:
A No tax effect
B Increase in DTA
C Increase in DTL
D Decrease in DTE
ANSWER: A
58.Select the correct statement with regards to intragroup balances and transactions during consolidation:
A Intragroup balances and transactions must be eliminated
B Intragroup balances and transactions must be eliminated to the extent of non-controlling interest