a. 318 PROBLEM PROBLEM 1: MULTIPLE CHOICE 1. According to PAS 28, significant influence is j when the investor PAS presumed c to ex a. holds 10% or more of the voting power of the investee. b. bolds 20% or more of the voting power of the investee. d. has the ability to appoint a majority of the investee's board c holds 51% or more of the voting power of the investee. of directors. 2. PAS 28 requires the use of the equity method. Under t method, an investment in associate or joint venture is initially and subsequently measured at Initial measurement fair value b. cost c fair value plus d. fair value plus transaction costs. transaction costs Subsequent measurement initial cost, adjusted for the investor's share in the investee's changes in equity cost, adjusted for the investor's share in the investee's changes in equity fair value initial cost, adjusted for the investor's share in the investee's changes in equity 3. Under the equity method, which of the following decreases the carrying amount of an investment in associate or joint venture? a. share in the profit of the investee b. share in the other comprehensive income of the investee c. share in the dividends declared by the investee d. a decline in the fair value of the investment 4. Entity A acquired 20% interest in Entity B on March 31, 20x1 for $500,000. Entity B reports profit of PIM in 20x1, which was earned evenly throughout the period, and declares dividends of P300 P200,000 amount 550 DL 590 1 PROBLE On Jan for PE divid amou 3. b. 2 Ent inte per sha di in th a t S