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Total Assets 402,000 96,000 430,800

This document provides answers to problems related to accounting standards PFRS 10-13. For PFRS 10 on consolidated financial statements, it gives the consolidated balance sheet of entities A and B. For PFRS 11 on joint arrangements, it provides answers to multiple choice problems about accounting for a joint venture. For PFRS 12 on disclosure of interests in other entities, it again provides answers to multiple choice problems. Finally, for PFRS 13 on fair value measurement, it works through problems calculating net sales proceeds and fair value of an asset to determine the most advantageous market. The document instructs the reader to continue reviewing standards PFRS 14-17 and submit discussion questions on a future date, with a final exam

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Melwin Calubayan
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357 views2 pages

Total Assets 402,000 96,000 430,800

This document provides answers to problems related to accounting standards PFRS 10-13. For PFRS 10 on consolidated financial statements, it gives the consolidated balance sheet of entities A and B. For PFRS 11 on joint arrangements, it provides answers to multiple choice problems about accounting for a joint venture. For PFRS 12 on disclosure of interests in other entities, it again provides answers to multiple choice problems. Finally, for PFRS 13 on fair value measurement, it works through problems calculating net sales proceeds and fair value of an asset to determine the most advantageous market. The document instructs the reader to continue reviewing standards PFRS 14-17 and submit discussion questions on a future date, with a final exam

Uploaded by

Melwin Calubayan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AEC14- CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS

ANSWERS TO PFRS 10-13

PFRS 10- CONSOLIDATED FINANCIAL STATEMENTS


PROBLEM 1
1. C
2. B

PROBLEM 2
1. A
Solution:
Entity A Entity B Consolidated
Cash in bank 12,000 6,000 18,000
Accounts Rec. 36,000 14,400 50,400
Inventory 48,000 27,600 (45k + 37.2k) 85,200
Inv. In sub. 90,000 - eliminated
Building, net 216,000 48,000 (216k + 57.6k) 273,600
Goodwill given 3,600
Total assets 402,000 96,000 430,800

Accounts payable 60,000 7,200 67,200


Share capital 204,000 60,000 parent’s only 204,000
Share premium 78,000 - parent’s only 78,000
Retained earnings 60,000 28,800 parent’s only 60,000
NCI in net assets given 21,600
Total liab. And equity 402,000 96,000 430,800

2.D 204,000 + 78,000 + 60,000 + 21,600 = 430,800

PFRS 11 – JOINT ARRANGEMENTS


PROBLEM 1
1. C
2. A – the joint arrangement is a joint venture. Accordingly, Tech Co. will use the equity method to
account for its investment in Mecha Co.
3. B
4. C

PROBLEM 2
1. A
2. C
3. B 1M own sales + (400k x 50% share in JO’s sales ) = 1.2M
4. B 1M + (1M x 50%) – (600k x 50%) = 1.2M

PFRS 12 – DISCLOSURE OF INTEREST IN OTHER ENTITIES


PROBLEM 1 PROBLEM 2
1. D 1. D
2. D 2. A
PFRS 13 – FAIR VALUE MEASUREMENT
PROBLEM 1
1. D
2. D
3. B

PROBLEM 2
1. A
2. C
3. B ( 130,000 – 10,000) = 120,000
4. D

SOLUTION:
The “ most advantageous market” is determined as follows:

Active Market #1 Active market # 2


Quoted price 130,000 135,000
Transport costs (10,000) (12,000)
Costs to sell (2,000) (3,000)
Net sales proceeds 118,000 120,000

The fair value is computed as follows:


135,000 price to active market # 2 – 12,000 transport costs = 123,000

NOTE: CONTINUE TO READ PFRS 14-17. ANSWER THE END OF DISCUSSION QUESTIONS. SUBMIT THE
ANSWER ON MAY 29, 2020. FINAL EXAMINATION TO POSTED JUNE 7, 2020 (EVENING) AND ANSWERS
TO BE SUBMITTED JUNE 8, 2020 (EVENING)

THANKS, KEEP SAFE. GOD BLESS…

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