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d d d d d d d d d d d
n Hilton d
MULTIPLEdCHOICE.d Choosed thed onedalternatived thatd bestd completesd thed statementd ord answersd thed question.
1) WhichdofdthedfollowingdtypesdofdsharedinvestmentddoesdNOTdqualifydasdadstrategicdinvestment?
A) Controlleddinvestments. B)d JointdControldinvestments.
C)dInvestmentsdwithoutdsignificantdinfluence. D)dSignificantdinfluencedinvestments.
Answer:d C
2) Adsignificantdinfluencedinvestmentdisdonedthat:
A) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdthedstrategicdanddoperatingdpoliciesdofdt
hedAssociate.
B) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdthedstrategicdoperatingdanddfinancingd
policiesdofdthedAssociate.
C) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdonlydthedoperatingdpoliciesdofdthed
Associate.
D) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdonlydthedfinancingdpoliciesdofdthed
Associate.
Answer:d B
3) Whatdisdtheddominantdfactorduseddtoddistinguishdportfoliodinvestmentsdfromdsignificantdinfluencedi
nvestments?
A) Thedpercentagedofdequitydhelddbydthedinvestor.
B) UsedofdthedEquitydMethoddtodaccountdfordanddreportdthedinvestment.
C) Thedinvestor'sdintentiondtodestablishdordmaintaindadlong-
termdoperatingdrelationshipdwithdthedinvestee.
D) UsedofdthedCostdMethoddtodaccountdfordanddreportdthedinvestment.
Answer:d C
4) WhichdofdthedfollowingdstatementsdisdTRUEdunderdIFRSd9?
A) OtherdComprehensivedIncomed(OCI)disdincludeddindRetaineddEarnings.
B) UnrealizeddgainsdanddlossesdondequitydinvestmentsdmaydbedincludeddindOtherdComprehensivedI
ncomed(OCI)donlydifdaddecisiondtoddodsodisdmadedwhendthedinvestmentdisdacquired.
C) AlldunrealizeddgainsdanddlossesdondequitydinvestmentsdflowdthroughdOtherdComprehensivedI
ncomed(OCI).
D) Unrealizeddgainsdanddlossesdondfairdvaluedthroughdprofitdanddlossd(FVTPL)dsecuritiesdaredi
ncludeddindOtherdComprehensivedIncome.
Answer:d B
5) Gainsdanddlossesdondfairdvaluedthroughdprofitdordlossd(FVTPL)dsecurities:
A) aredincludeddindnetdincomedonlydwhendrealized.
B) aredneverdrecordedduntildthedsecuritiesdaredsold.
C) aredincludeddindnetdincome,dregardlessdofdwhetherdtheydaredrealizeddordnot.
D) aredincludeddindnetdincomedonlydwhendthedinvestmentdhasdbecomedpermanentlydimpaired.
Answer:d C
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d d d d d d d d d d d
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6) HowdaredrealizeddgainsdfromdthedsaledofdinvestmentsdaccounteddfordatdfairdvaluedthroughdOtherd
ComprehensivedIncomed(FVTOCI)daccounteddfordunderdIFRSd9?
A) TheydaredtransferreddtodRetaineddEarningsdwithoutdgoingdthroughdnetdincome.
B) Theydaredtransferreddtodnetdincomedindthedperioddofdthedsale.
C) TheydremaindindAccumulateddOtherdComprehensivedIncome.
D) TheydaredtransferreddtodContributeddSurplus.
Answer:d A
7) Whendusingdthedcostdmethoddofdaccounting,dwhichdmethoddshoulddbeduseddtoddeterminedthedcarryingdv
aluedofdsharesdsolddwhendadportiondofdthedsharesdmakingdupdandinvestmentdisdsold?
A) Specificdcost. B)d Lastdin,dfirstdout. C)dAveragedcost. D)dFirstdin,dfirstdout.
Answer:d C
8) Whatdpercentagedofdownershipdisduseddasdadguidelinedtoddeterminedthatdsignificantdinfluencedexistsdu
nderdIASd28dInvestmentsdindAssociatesdanddJointdVentures?
A) 20%dordmore. B)d Betweend20%dandd50%.
C) 25%dordmore. D)dLessdthand20%.
Answer:d B
9) Whichdofdthedfollowingdmethodsdusesdproceduresdclosestdtodthoseduseddindpreparingdconsolidateddf
inancialdstatements?
A) Fairdvaluedthroughdprofitdordlossd(FVTPL).
B) Thedequitydmethod.
C) Fairdvaluedthroughdotherdcomprehensivedincome.
D) Thedcostdmethod.
Answer:d B
10) WhichdofdthedfollowingdisdNOTdadpossibledindicatordofdsignificantdinfluence?
A) ThedAssociate'sdnewdCEOdwasdpreviouslydCEOdofdthedinvestordcompany.
B) ThedinvestordhasdthedabilitydtodelectdmembersdtodthedBoarddofdDirectors.
C) ThedinvestordhasdengageddindnumerousdintercompanydtransactionsdwithdthedAssociate.
D) Thedinvestordhasdthedrightdtodparticipatedindthedpolicy-makingdprocess.
Answer:d A
11) WhichdofdthedfollowingdstatementsdisdCORRECT?
A) Andownershipdinterestdbetweend0dandd10%dcandneverdimplydsignificantdinfluence.
B) Andownershipdinterestdbetweend20%dandd50%dalwaysdimpliesdsignificantdinfluence.
C) SignificantdinfluencedisdstilldpossibledifdthedInvestordownsdlessdthand20%dofdthedvotingdsharesdofdt
hedAssociate.
D) ControldisdonlydpossibledifdthedInvestordownsdmoredthand50%dofdthedvotingdsharesdofdthed
Associate.
Answer:d C
2
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d d d d d d d d d d d
n Hilton d
12) Theddifferencedbetweendthedinvestor'sdcostdanddthedinvestor'sdpercentagedofdthedcarryingdvaluedofdthedn
etdidentifiabledassetsdofdthedassociatedisdknowndas:
A) thedAcquisitiondDifferential. B)d Goodwill.
C) thedExcessdBookdValue. D)dthedFairdValuedIncrement.
Answer:d A
13) Anydunallocateddpositivedacquisitionddifferentialdisdnormally:
A) expenseddduringdthedyeardfollowingdthedacquisition.
B) chargeddtodRetaineddEarnings.
C) pro-rateddacrossdthedAssociate'sdidentifiablednetdassets.
D) recordeddasdGoodwill.
Answer:d D
14) Whendaredgainsdondintercompanydtransfersdofdassetsdbetweendandinvestordanddadsignificantdinfluencedin
vestmentdrecognizeddasdpartdofdthedinvestmentdincomedaccounteddfordbydthedparentdunderdthedequitydme
thod?
A) Theydaredneverdrecognized.
B) Indthedperiod(s)dwhendthedassetsdaredsolddtodthirddpartiesdordconsumed.
C) Indthedperioddwhendthedintercompanydtransferdtakesdplace.
D) Theydaredrecognizeddonlydwhendthedinvestmentdisdsold.
Answer:d B
15) Thed
investmentdmustdbedshowndasdadcurrentdasset,dwhereasdthedotherdinvestmentsdcoulddbedc
d
urrentdordnon-current,ddependingdondmanagement'sdintention.
A) FVTPL B)d costdmethod C)dFVTOCI D)dequitydmethod
Answer:d A
16) Whendanalyzingdanddinterpretingdfinancialdstatements,dalthoughdthedreportingdmethodsdshowddifferent
dvaluesdfordliquidity,dsolvency,danddprofitability,dthedrealdeconomicdsituationdisd
dfor
dthedfourddifferentdmethods.
A) completelyddifferent
B) exactlydthedsame
C) almostdsimilardexceptdfordthedfairdvaluedmethods
D) almostdsimilardexceptdfordthedequitydmethod
Answer:d B
17) ReportingindaccordancedwithdthedAccountingdStandardsdfordPrivatedEnterprisesd(ASPE)disdpermitteddi
ndcertaindinstancesdfor:
A) alldCanadiandcompanies.
B) privatelydhelddcompanies.
C) publiclydhelddcompanies.
D) Canadiandcompaniesdconsolidatingdtheirdforeigndsubsidiaries.
Answer:d B
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d d d d d d d d d d d
n Hilton d
MULTIPLEdCHOICE.d Choosed thed onedalternatived thatd bestd completesd thed statementd ord answersd thed question.
1) WhichdofdthedfollowingdtypesdofdsharedinvestmentddoesdNOTdqualifydasdadstrategicdinvestment?
A) Controlleddinvestments. B)d JointdControldinvestments.
C)dInvestmentsdwithoutdsignificantdinfluence. D)dSignificantdinfluencedinvestments.
Answer:d C
2) Adsignificantdinfluencedinvestmentdisdonedthat:
A) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdthedstrategicdanddoperatingdpoliciesdofdt
hedAssociate.
B) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdthedstrategicdoperatingdanddfinancingd
policiesdofdthedAssociate.
C) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdonlydthedoperatingdpoliciesdofdthed
Associate.
D) allowsdthedinvestordtodexercisedsignificantdinfluencedoverdonlydthedfinancingdpoliciesdofdthed
Associate.
Answer:d B
3) Whatdisdtheddominantdfactorduseddtoddistinguishdportfoliodinvestmentsdfromdsignificantdinfluencedi
nvestments?
A) Thedpercentagedofdequitydhelddbydthedinvestor.
B) UsedofdthedEquitydMethoddtodaccountdfordanddreportdthedinvestment.
C) Thedinvestor'sdintentiondtodestablishdordmaintaindadlong-
termdoperatingdrelationshipdwithdthedinvestee.
D) UsedofdthedCostdMethoddtodaccountdfordanddreportdthedinvestment.
Answer:d C
4) WhichdofdthedfollowingdstatementsdisdTRUEdunderdIFRSd9?
A) OtherdComprehensivedIncomed(OCI)disdincludeddindRetaineddEarnings.
B) UnrealizeddgainsdanddlossesdondequitydinvestmentsdmaydbedincludeddindOtherdComprehensivedI
ncomed(OCI)donlydifdaddecisiondtoddodsodisdmadedwhendthedinvestmentdisdacquired.
C) AlldunrealizeddgainsdanddlossesdondequitydinvestmentsdflowdthroughdOtherdComprehensivedI
ncomed(OCI).
D) Unrealizeddgainsdanddlossesdondfairdvaluedthroughdprofitdanddlossd(FVTPL)dsecuritiesdaredi
ncludeddindOtherdComprehensivedIncome.
Answer:d B
5) Gainsdanddlossesdondfairdvaluedthroughdprofitdordlossd(FVTPL)dsecurities:
A) aredincludeddindnetdincomedonlydwhendrealized.
B) aredneverdrecordedduntildthedsecuritiesdaredsold.
C) aredincludeddindnetdincome,dregardlessdofdwhetherdtheydaredrealizeddordnot.
D) aredincludeddindnetdincomedonlydwhendthedinvestmentdhasdbecomedpermanentlydimpaired.
Answer:d C
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6) HowdaredrealizeddgainsdfromdthedsaledofdinvestmentsdaccounteddfordatdfairdvaluedthroughdOtherd
ComprehensivedIncomed(FVTOCI)daccounteddfordunderdIFRSd9?
A) TheydaredtransferreddtodRetaineddEarningsdwithoutdgoingdthroughdnetdincome.
B) Theydaredtransferreddtodnetdincomedindthedperioddofdthedsale.
C) TheydremaindindAccumulateddOtherdComprehensivedIncome.
D) TheydaredtransferreddtodContributeddSurplus.
Answer:d A
7) Whendusingdthedcostdmethoddofdaccounting,dwhichdmethoddshoulddbeduseddtoddeterminedthedcarryingdv
aluedofdsharesdsolddwhendadportiondofdthedsharesdmakingdupdandinvestmentdisdsold?
A) Specificdcost. B)d Lastdin,dfirstdout. C)dAveragedcost. D)dFirstdin,dfirstdout.
Answer:d C
8) Whatdpercentagedofdownershipdisduseddasdadguidelinedtoddeterminedthatdsignificantdinfluencedexistsdu
nderdIASd28dInvestmentsdindAssociatesdanddJointdVentures?
A) 20%dordmore. B)d Betweend20%dandd50%.
C) 25%dordmore. D)dLessdthand20%.
Answer:d B
9) Whichdofdthedfollowingdmethodsdusesdproceduresdclosestdtodthoseduseddindpreparingdconsolidateddf
inancialdstatements?
A) Fairdvaluedthroughdprofitdordlossd(FVTPL).
B) Thedequitydmethod.
C) Fairdvaluedthroughdotherdcomprehensivedincome.
D) Thedcostdmethod.
Answer:d B
10) WhichdofdthedfollowingdisdNOTdadpossibledindicatordofdsignificantdinfluence?
A) ThedAssociate'sdnewdCEOdwasdpreviouslydCEOdofdthedinvestordcompany.
B) ThedinvestordhasdthedabilitydtodelectdmembersdtodthedBoarddofdDirectors.
C) ThedinvestordhasdengageddindnumerousdintercompanydtransactionsdwithdthedAssociate.
D) Thedinvestordhasdthedrightdtodparticipatedindthedpolicy-makingdprocess.
Answer:d A
11) WhichdofdthedfollowingdstatementsdisdCORRECT?
A) Andownershipdinterestdbetweend0dandd10%dcandneverdimplydsignificantdinfluence.
B) Andownershipdinterestdbetweend20%dandd50%dalwaysdimpliesdsignificantdinfluence.
C) SignificantdinfluencedisdstilldpossibledifdthedInvestordownsdlessdthand20%dofdthedvotingdsharesdofdt
hedAssociate.
D) ControldisdonlydpossibledifdthedInvestordownsdmoredthand50%dofdthedvotingdsharesdofdthed
Associate.
Answer:d C
2
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d d d d d d d d d d d
n Hilton d
12) Theddifferencedbetweendthedinvestor'sdcostdanddthedinvestor'sdpercentagedofdthedcarryingdvaluedofdthedn
etdidentifiabledassetsdofdthedassociatedisdknowndas:
A) thedAcquisitiondDifferential. B)d Goodwill.
C) thedExcessdBookdValue. D)dthedFairdValuedIncrement.
Answer:d A
13) Anydunallocateddpositivedacquisitionddifferentialdisdnormally:
A) expenseddduringdthedyeardfollowingdthedacquisition.
B) chargeddtodRetaineddEarnings.
C) pro-rateddacrossdthedAssociate'sdidentifiablednetdassets.
D) recordeddasdGoodwill.
Answer:d D
14) Whendaredgainsdondintercompanydtransfersdofdassetsdbetweendandinvestordanddadsignificantdinfluencedin
vestmentdrecognizeddasdpartdofdthedinvestmentdincomedaccounteddfordbydthedparentdunderdthedequitydme
thod?
A) Theydaredneverdrecognized.
B) Indthedperiod(s)dwhendthedassetsdaredsolddtodthirddpartiesdordconsumed.
C) Indthedperioddwhendthedintercompanydtransferdtakesdplace.
D) Theydaredrecognizeddonlydwhendthedinvestmentdisdsold.
Answer:d B
15) Thed
investmentdmustdbedshowndasdadcurrentdasset,dwhereasdthedotherdinvestmentsdcoulddbedc
d
urrentdordnon-current,ddependingdondmanagement'sdintention.
A) FVTPL B)d costdmethod C)dFVTOCI D)dequitydmethod
Answer:d A
16) Whendanalyzingdanddinterpretingdfinancialdstatements,dalthoughdthedreportingdmethodsdshowddifferent
dvaluesdfordliquidity,dsolvency,danddprofitability,dthedrealdeconomicdsituationdisd
dfor
dthedfourddifferentdmethods.
A) completelyddifferent
B) exactlydthedsame
C) almostdsimilardexceptdfordthedfairdvaluedmethods
D) almostdsimilardexceptdfordthedequitydmethod
Answer:d B
17) ReportingindaccordancedwithdthedAccountingdStandardsdfordPrivatedEnterprisesd(ASPE)disdpermitteddi
ndcertaindinstancesdfor:
A) alldCanadiandcompanies.
B) privatelydhelddcompanies.
C) publiclydhelddcompanies.
D) Canadiandcompaniesdconsolidatingdtheirdforeigndsubsidiaries.
Answer:d B
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