37. According to IAS 28, which of the following will not fall under the situation of...

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37. According to IAS 28, which of the following will not fall under the situation of "existence of significant influence by an investor in the financial and operating policy decisions of the investee but not control of these decisions"? * (1 Point) Power to govern the financial and operating policy decisions of an enterprise so as to obtain benefits from its activities O Participation in policy making process Technological dependencies Material intercompany transactions 42. Which of the following is incorrect? * (1 Point) The useful life of an item of Property, Plant, and equipment is a matter of estimate or judgement of the management Residual value of an item of Property, Plant, and equipment is a matter of estimate or judgement of the management The depreciation method adopted by a firm shall not reflect the pattern in which the economic benefit of an asset is used by the entity The depreciable amount of a property, plant, and equipment shall be allocated over its useful life on a systematic basis 43. Which of the following is false regarding PAS 41? * (1 Point) The price in the active market is considered to be the best basis for determining the fair value of biological assets At initial recognition biological assets are measured at purchase price plus transaction cost necessary to bring it to its present location or condition The change in fair value less estimated cost to sell of the biological asset is reported as income or loss in the profit or loss in the period in which the change arises On the balance sheet, biological assets whose fair value cannot be measure reliably shall be measure at cost less accumulated depreciation and less accumulated impairment loss 44. Which of the following is not presented as inventories in the statement of financial position? (1 Point) Cost of labor and other personnel costs incurred by a service provider for which the entity has not yet recognized the related revenue Items of goods that are in the process of production for such sale Items if equipment that are used in the manufacture of goods to be held for sale Items of goods that are held for sale in the ordinary course of business operations 45. Which of the following best describes the asset's carrying amount? * (1 Point) The historical cost of the asset less the accumulated depreciation and accumulated impairment loss The amount of cash or cash equivalent paid to acquire the asset at the time of acquisition The historical cost of the asset less its residual value The amount on which the enterprise expects to obtain from the asset at the end of its useful life less the cost of disposal 37. According to IAS 28, which of the following will not fall under the situation of "existence of significant influence by an investor in the financial and operating policy decisions of the investee but not control of these decisions"? * (1 Point) Power to govern the financial and operating policy decisions of an enterprise so as to obtain benefits from its activities O Participation in policy making process Technological dependencies Material intercompany transactions 42. Which of the following is incorrect? * (1 Point) The useful life of an item of Property, Plant, and equipment is a matter of estimate or judgement of the management Residual value of an item of Property, Plant, and equipment is a matter of estimate or judgement of the management The depreciation method adopted by a firm shall not reflect the pattern in which the economic benefit of an asset is used by the entity The depreciable amount of a property, plant, and equipment shall be allocated over its useful life on a systematic basis 43. Which of the following is false regarding PAS 41? * (1 Point) The price in the active market is considered to be the best basis for determining the fair value of biological assets At initial recognition biological assets are measured at purchase price plus transaction cost necessary to bring it to its present location or condition The change in fair value less estimated cost to sell of the biological asset is reported as income or loss in the profit or loss in the period in which the change arises On the balance sheet, biological assets whose fair value cannot be measure reliably shall be measure at cost less accumulated depreciation and less accumulated impairment loss 44. Which of the following is not presented as inventories in the statement of financial position? (1 Point) Cost of labor and other personnel costs incurred by a service provider for which the entity has not yet recognized the related revenue Items of goods that are in the process of production for such sale Items if equipment that are used in the manufacture of goods to be held for sale Items of goods that are held for sale in the ordinary course of business operations 45. Which of the following best describes the asset's carrying amount? * (1 Point) The historical cost of the asset less the accumulated depreciation and accumulated impairment loss The amount of cash or cash equivalent paid to acquire the asset at the time of acquisition The historical cost of the asset less its residual value The amount on which the enterprise expects to obtain from the asset at the end of its useful life less the cost of disposal

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Solution 37IAS 28 Investments in Associates the accounting for investments in associates An associat... View the full answer