題目

?Clementine Co has owned 21% of the ordinary shares of Tangerine Co for several years. Clementine Co does not have any

investments in any other companies. How should the investment in Tangerine Co be reflected in the financial statements of

Clementine Co?

A

The revenues and costs and assets and liabilities of Tangerine Co are added to the revenues

and costs and assets and liabilities of Clementine Co on a line by line basis.

B

An amount is shown in the statement of financial position for ‘investment in associate’ being the

original cost paid for the investment plus Clementine Co’s share of the profit after tax of

Tangerine Co. 21% of the profit after tax of Tangerine Co should be added to Clementine Co’s

profit before tax in the statement of profit or loss each year.

C

An amount is shown in the statement of financial position under ‘investments’ being the original

cost paid for the investment, this amount does not change. Dividends received from Tangerine

are recognised in the statement of profit or loss of Clementine Co.

D

An amount is shown in the statement of financial position under ‘investments’ being the original

cost paid for the investment, this amount does not change. 21% of the profit after tax of

Tangerine Co should be added to Clementine Co’s profit after tax in the statement of profit or

loss each year

掃碼查看暗號(hào)，即可獲得解鎖答案！

點(diǎn)擊獲取答案
Chapter23Introductiontoconsolidatedfinancialstatements

Tangerine is an associate of Clementine, however because Clementine has no other investments in other companies, it will

not produce consolidated financial statements. Therefore the investment will appear in the single company financial

statements of Clementine as a simple investment. The statement of financial position will show an investment at cost and the statement of profit or loss will show dividends received from Tangerine. If Clementine instead did produce consolidated

financial statements, Tangerine would be accounted for using the equity method and B would instead be correct.

多做幾道

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

?The accruals concept

C

The going concern concept

D

?The business entity concept

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

The accruals concept

C

?The going concern concept

D

The business entity concept

According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful

representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error

A

1?and?2

B

2?and?3

C

?1?and?4

D

3?and4

Which of the following accounting concepts means that similar items should receive a similar accounting treatment?

A

Going concern

B

Accruals

C

Matching

D

Consistency

Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy

Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for

Financial Reporting?

A

1 and 2 only

B

2 and 4 only

C

3 and 4 only

D

1 and 3 only

最新試題

該科目易錯(cuò)題

該題目相似題