Pas 27 Flashcards
What does PAS 27 prescribe?
A. Accounting for employee benefits
B. Accounting and disclosure requirements for investments in subsidiaries, associates, and joint ventures
C. Accounting for non-profit organizations
D. The valuation of financial instruments
B
When is PAS 27 applied?
A. When an entity is required to prepare consolidated financial statements
B. Only when an entity has a joint venture
C. When an entity chooses or is required by law to prepare separate financial statements
D. Only when an entity reports under IFRS
C
What are separate financial statements presented in addition to?
A. Cash flow statements
B. The entity’s tax returns
C. Consolidated financial statements or financial statements that use the equity method
D. Budget reports
C
Which financial statements are NOT considered separate financial statements under PAS 27?
A. The financial statements of an entity without investments in subsidiaries, associates, or joint ventures
B. Financial statements prepared in accordance with IFRS
C. Consolidated financial statements
D. The financial statements of a joint venture
A
What type of entities present separate financial statements as their only financial statements?
A. Entities required to prepare consolidated financial statements
B. Entities exempt from preparing consolidated financial statements
C. Government agencies
D. Financial institutions
B
What do consolidated financial statements present?
A. The financial position of each subsidiary separately
B. The combined financial position and performance of the parent and its subsidiaries as a single economic entity
C. Only the parent company’s financial position
D. The investment performance of subsidiaries, associates, and joint ventures
B
How are investments in subsidiaries, associates, or joint ventures accounted for in separate financial statements?
A. Only at cost
B. Only at fair value
C. Either at cost, in accordance with PFRS 9, or using the equity method
D. Using the same method as in consolidated financial statements
C
What must an entity do when applying accounting methods for investment categories in separate financial statements?
A. Use a different method for each subsidiary
B. Use the same accounting method for all subsidiaries but a different one for associates
C. Apply the same accounting method for each investment category (subsidiaries, associates, and joint ventures)
D. Apply the method that results in the highest profits
C
If investments are measured at fair value through profit or loss in non-separate financial statements, how should they be measured in separate financial statements?
A. At historical cost
B. At the same fair value measurement
C. At book value
D. Using the discounted cash flow method
B
Under which standard are investments classified as held for sale accounted for?
A. PFRS 9 Financial Instruments
B. PAS 28 Investments in Associates and Joint Ventures
C. PFRS 5 Non-current Assets Held for Sale and Discontinued Operations
D. PAS 27 Separate Financial Statements
C
PAS 27 mandates which entities should produce separate financial statements.
False (PAS 27 does not mandate which entities should produce separate financial statements; it applies when an entity chooses or is required by law to prepare them.)
If an entity does not have an investment in a subsidiary, associate, or joint venture, its financial statements are considered separate financial statements.
False (Such financial statements are not considered separate financial statements.)
The entity can apply different accounting methods for subsidiaries, associates, and joint ventures in separate financial statements.
False (The entity must apply the same accounting method for each investment category.)
Separate financial statements are presented in addition to consolidated financial statements or the financial statements of an entity that accounts for an associate or joint venture using the equity method.
TRUE
Separate financial statements must be prepared according to all applicable PFRSs, except for investments in subsidiaries, associates, or joint ventures, which can be accounted for at cost, fair value, or the equity method.
TRUE
