Ch25 Tb Picker3e
Testbank
to accompany
Applying International Financial Reporting Standards 3e
By
Prepared by
John Sweeting and Emma Holmes
John Wiley & Sons Australia, Ltd 2013
Chapter 25 Consolidation: intragroup transactions
Learning Objectives
Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions
Learning Objective 25.2 Prepare worksheet entries for intragroup transactions involving profits and losses in beginning and ending inventory
Learning Objective 25.3 Prepare worksheet entries for intragroup transactions involving profits and losses on the transfer of property, plant and equipment in both the current and previous periods
Learning Objective 25.4 Prepare worksheet entries for intragroup transactions involving transfers from inventory to property, plant and equipment and from property, plant and equipment to inventory
Learning Objective 25.5 Prepare worksheet entries for intragroup services such as management fees
Learning Objective 25.6 Prepare worksheet entries for intragroup dividends
Learning Objective 25.7 Prepare worksheet entries for intragroup borrowings.
Multiple Choice
1. IFRS 10 Consolidated Financial Statements, requires that intragroup transactions be:
Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions
a. eliminated on consolidation to the extent of the parent’s interest in the subsidiary.
b. adjusted for in the books of the parent and subsidiary to the extent of the parent’s interest in the subsidiary.
c. adjusted for in full in the books of the parent and subsidiary.
*d. eliminated in full on consolidation.
2. The test indicating that an intragroup business transaction has been realised is:
Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions
*a. the involvement of an external party in the transaction
b. the generation of profit from the transaction
c. whether or not an operating profit or loss occurred as a
to accompany
Applying International Financial Reporting Standards 3e
By
Prepared by
John Sweeting and Emma Holmes
John Wiley & Sons Australia, Ltd 2013
Chapter 25 Consolidation: intragroup transactions
Learning Objectives
Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions
Learning Objective 25.2 Prepare worksheet entries for intragroup transactions involving profits and losses in beginning and ending inventory
Learning Objective 25.3 Prepare worksheet entries for intragroup transactions involving profits and losses on the transfer of property, plant and equipment in both the current and previous periods
Learning Objective 25.4 Prepare worksheet entries for intragroup transactions involving transfers from inventory to property, plant and equipment and from property, plant and equipment to inventory
Learning Objective 25.5 Prepare worksheet entries for intragroup services such as management fees
Learning Objective 25.6 Prepare worksheet entries for intragroup dividends
Learning Objective 25.7 Prepare worksheet entries for intragroup borrowings.
Multiple Choice
1. IFRS 10 Consolidated Financial Statements, requires that intragroup transactions be:
Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions
a. eliminated on consolidation to the extent of the parent’s interest in the subsidiary.
b. adjusted for in the books of the parent and subsidiary to the extent of the parent’s interest in the subsidiary.
c. adjusted for in full in the books of the parent and subsidiary.
*d. eliminated in full on consolidation.
2. The test indicating that an intragroup business transaction has been realised is:
Learning Objective 25.1 Explain the need for making adjustments for intragroup transactions
*a. the involvement of an external party in the transaction
b. the generation of profit from the transaction
c. whether or not an operating profit or loss occurred as a