F2

Question 1

Tell me the effect of subsequent event about replacement cost of unbuild property

Answer 1

Subsequent event relating to building is that replacement cost will be ignored because it is unfinished and hard to estimate

Question 2

Measurement of PPE or held as an investment property, Goodwill, financial instrument like cash and cash equivalent

Answer 2

Historical cost/fair value

Question 3

Where to report fair value hedge?

Answer 3

Income statement

Question 4

Where to report cash flow hedge?

Answer 4

Other comprehensive income

Question 5

How do you compute the fair value of a principal market and most advantageous market?

Answer 5

Principal = most unit sa sarili nya di sa iba
Advantageous = price

Question 6

Tell me what to do if there’s a change in method of depreciation

Answer 6

A change in depreciation is handle prospectively no cumulative effect

Question 7

What is the formula of return on equity

Answer 7

Net income - preferred dividends divided by average total equity

Question 8

What is the formula for working capital turnover

Answer 8

Sales / average working capital (which is computed as current asset - current liabilities

Question 9

Formula for return on asset

Answer 9

Net income / average asset

Question 10

Do you remove the tax when computing other comprehensive income

Answer 10

Yes you should report other comprehensive income net of tax

Question 11

How to compute book value per share

Answer 11

1 compute all preferred stock value amount + common stock value amount + Additional paid in capital value amount + Retained earnings - dividends in arrears - liquidating dividends or value
2 answer to # 1 divide that to common shares outstanding

Question 12

What is the effect if the declared property dividend’s value is less than the amount declared.

Answer 12

The value of the property dividend will be deducted to the Retained earnings. Any gain should be added back to the retained earnings

Question 13

Distribution of dividends declare

Answer 13

1. Kailangan tignan mo kung cummulative or noncummulative and preferred stock. Kapag cumulative meron sya share kahit walang declaration ng dividend. Kapag naman noncumulative may share sya kahit di bayad basta nadeclare.

Question 14

Identified concentration only need a o disclosed if the following occurs

Answer 14

1. The concentration/uncertainty exist at the statement date
2. The concentration/uncertainty makes the entity vulnerable to the rick of a near - term severe impact
3. It is at least reasonably possible that the event that could cause the severe impact occur in the near future

Question 15

What to do with permanent losses when corp issue quarterly FS

Answer 15

Do not report temporary losses. Only report permanent losses in the valuation of inventory

Question 16

During period of inflation what happened to ending inventory under Fifo and lifo using perpetual and period inventory valuation

Answer 16

Fifo same as lifo
Lifo will not have the same ending inventory

Question 17

Formula for index under inventory

Answer 17

Index = ending inventory at current yr cost / ending inventory at base yr cost

Question 18

Estimated of price level changes for specific inventories under which inventory method

Answer 18

Dollar value LIFO

Question 19

How do you value a stock dividends if its small and large

Answer 19

Large - par value
Small - market value

Question 20

How do you depreciate leasehold improvements

Answer 20

Amortized over the lesser of the life of the improvement or the remaining term of the lease whichever is lesser

Question 21

Formula for sum of the yrs digit depreciation

Answer 21

N x (N + 1) / 2
When computing for the yearly depreciation dont deduct depreciation exp. Yearly. Every yr of depreciation you will use the cost of the equipment

Question 22

Formula of declining balance depreciation

Answer 22

2 x 1/n dito minus mo yearly ung dep. expense. Remember to ignore or dont deduct the salvage value of the asset

Question 23

Depletion formula

Answer 23

1. Compute depletion base = Cost - Residual value + any estimated restoration and development cost to prepare the land for extraction
2. Depletion base / Estimated recoverable unit x actual ton sold

Question 24

Tell me about the testing of impairment loss

Answer 24

1. Undiscounted expected cash flow should be less than the carrying value if positive no impairment loss
2. Impairment loss then computed by fair value - discounted future cash flow

Question 25

How do you value donated fixed assets

Answer 25

Are recorded at fair value along with incudental cost incurred.

Question 26

Tell me about repairs of equipment

Answer 26

1. Increase in quantity and usefulness = capitalize the cost
2. Increase in life = reduce the accumulated depreciation