Toa Quizzer 6 Ias 34
Toa Quizzer 6 Ias 34
Toa Quizzer 6 Ias 34
A financial reporting period shorter than a full financial year is known as a/an:
a. interim period
b. condensed period
c. fiscal period
d. non-calendar period
2.
3.
4.
The SEC and PSE require entities covered by the reportorial requirements of the Revised Securities Act
to the
I. Quarterly interim financial reports within 45 days after the end of each of the first three quarters.
II. Semiannual interim financial reports within 45 days after the end of the first six months.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
5.
6.
For interim financial reporting, an expropriation gain occurring in the second quarter should be
a. recognized ratably over the last three quarters.
b. recognized ratably over all four quarters with the first quarter being restated.
c. recognized in the second quarter.
d. disclosed by footnote in the second quarter.
7.
Which of the following is not true regarding standards for interim reporting?
a. Declines in inventory value should be deferred to future interim periods.
b. Use of the gross margin method for computing cost of goods sold must be disclosed.
c. Costs and expenses not directly associated with interim revenue must be allocated to interim periods
on a reasonable basis.
d. Gains and losses that arise in an interim period should be recognized in the interim period in which
they arise if they would not normally be deferred at year end.
8.
Interim financial reporting should be viewed primarily in which of the following ways?
a. As useful only if activity is spread evenly throughout the year.
b. As if the interim period were an annual accounting period.
c. As reporting under a comprehensive basis of accounting other than GAAP.
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An interim financial report shall include, as a minimum, all of the following components, except
a. condensed balance sheet and income statement.
b. condensed cash flow statement.
c. condensed statement of changes in equity or statement of recognized gains and losses.
d. accounting policies and explanatory notes.
10.
11.
IAS 34 states a presumption that anyone reading the interim financial reports will
a. understand all IFRS.
b. have access to the record of the entity.
c. have access to the most recent annual report.
d. not make decisions based on the report.
12.
An entity owns a number of farms that harvest produce seasonally. Approximately, 80% of the entitys
sales are in the period of August to October. Because the entitys business is seasonal, IAS 34 suggests
a. additional notes to be written in the interim reports about seasonal nature of the business.
b. disclosure of financial information for the latest and comparative 12-month period in the addition to
the interim report.
c. additional disclosure in the accounting policy note.
d. no additional disclosure.
13.
14.
How is the income tax expense for the third quarter interim period computed?
a. The annual rate multiplied by the third quarter pretax earnings.
b. The estimated tax for the first three quarters based on an annual rate, less a similar estimate for the
first two quarters.
c. The rate applicable during the third quarter multiplied by four times the third quarter pretax earnings.
d. One half of the difference between the total estimated annual income tax expense and the income
tax for the first two quarters.
15.
16.
If the enterprise publishes interim financial reports quarterly on June 30, 2015 and the financial year
ends December 31, 2015, which is an incorrect interim reporting?
a. Balance sheet as of the end of the current interim period and a comparative balance sheet as of the
end of the immediately preceding fiscal year.
b. Income statements for the current interim period and cumulatively for the current financial year to
date, with comparative income statement for the immediately preceding year.
c. Cash flow statement cumulatively for the current financial year to date with comparative statement for
the comparable year-to-date period of the immediately preceding year.
d. Statement of changes in equity cumulatively for the current financial year to date with comparable
statement for the comparable year-to-date period of the immediately preceding year.
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17.
An entity is preparing interim financial statements for six months ended June 30, 2017. In the interi m
financial statements for the six months ended June 30, 2017, a statement of financial position on June
30, 2017 and a statement of comprehensive income for the six months ended June 30, 2017 shall be
presented. In addition, all of the following shall be presented, except
a. a statement of financial position on June 30, 2016.
b. a statement of financial position on December 31, 2016.
c. a statement of comprehensive income for the half-year ended June 30, 2016.
d. a statement of cash flows for the half year ended June 30, 2016.
18.
Which one among the following statements is not a characteristic of the integral view of presenting
interim financial statements?
a. It is the generally acceptable view.
b. Each interim period is recognized as a separate accounting period, regardless of the length of time
involved.
c. Each interim period is a part of the annual period.
d. The revenue and expenses for the annual period are allocated among interim periods on a
reasonable basis.
19.
Which of the following is not true regarding standards for interim reporting?
a. Declines in inventory value should be deferred to future interim periods.
b. Use of the gross margin method for computing cost of goods sold must be disclosed.
c. Costs and expenses not directly associated with interim revenue must be allocated to interim periods
on a reasonable basis.
d. Gains and losses that arise in an interim period should be recognized in the interim period in which
they arise if they would not normally be deferred at year-end.
20.
An inventory loss from market decline of P900,000 occurred in April 2017. Move Company recorded this
loss in April 2017 after its March 31, 2017, quarterly report was issued. P200,000 of this loss was
recovered by the end of the year. How should this loss and subsequent gain be reflected in the quarterly
income statements of Move Company?
Three months ended (2017):
March 31
June 30
September 30
December 31
a.
0
(900,000)
0
0
b.
0
(300,000)
(300,000)
(300,000)
c.
0
(900,000)
0
200,000
d.
(225,000)
(225,000)
(225,000)
(225,000)