MGA DAMBIEEE!!!!

Complete Answer Pleaseee. Thank youuu

NO. QUESTIONS ANSWER 1 ANSWER 2 if

unsure answer 1

1 An entity shall apply IFRS 17 to all but one of the Insurance contracts,
following: excluding
reinsurance
contracts, it issues

2 Sino Corporation, subsidiary, buys marketable equity MES 19,000;

securities (MES) and inventory on April 1, 2010 for INVENTORY 19,000
100,000 foreign currencies (FC) each. It pays both
items on June 1, 2010

Assume that the foreign currency is the subsidiary

functional currency. What balance does a consolidated
balance sheet report as of December 31, 2010?

3 Sino Corporation, subsidiary, buys marketable equity MES 19,000; iNV

securities (MES) and inventory on April 1, 2010 for 16,000
100,000 foreign currencies (FC) each. It pays both
items on June 1, 2010

Assume that the peso is the subsidiary functional

currency. What balance does a consolidated balance
sheet report as of December 31, 2010?

4 An interim trustee was appointed by the court regarding

the administration of the estate of Sino and is to
prepare a preliminary report. Presented below is its
Statement of Financial Position before the start of
liquidation:

5 Sino Company purchased inventory on November 30,

2018 for $10,000 payable on March 1, 2019. On
December 1, 2018, the entity entered a forward
contract to purchase $10,000 in 90 days to hedge the 50,000
purchase of inventory on November 30, 2018. The
relevant exchange rates are:

What amount of foreign currency transaction loss

should be included in income from the revaluation of
accounts payable for 2018?

6 Franchise Accounting - PFRS 15 provides that initial

franchise fee shall be recognized as revenue over time
(percentage of completion) if any of the following
criteria provided below is met. Which of the following
indicators shows that the initial franchise fee shall be
recognized as revenue at a point in time instead of over
time?

7 Sino Company purchased inventory on November 30,

2018 for $10,000 payable on March 1, 2019. On
December 1, 2018, the entity entered a forward
contract to purchase $10,000 in 90 days to hedge the 30,000
purchase of inventory on November 30, 2018. The
relevant exchange rates are:

What amount of foreign currency transaction gain from

the forward contract should be included in net income
for 2018?

8 Aside from the initial amount of revenue agreed in the Gain on sale of
long-term construction contract, additional revenue may scrap materials from
be recognized by the contractor (1) to the extent that it construction
is probable that they will result in revenue and (2) they
are capable of being reliably measured. Which of the
following will not be considered as an additional
 contract revenue by a contractor?

9 Sino Inc. charges an initial fee of P70,000. Upon Zero

signing of the agreement (which covers 3 years), a
payment of P28,000 is due. Thereafter, three annual nasearch
payments of P14,000 are required. The credit rating of
the franchise is such that it would have to pay interest
at 10% to borrow money

The amount of franchise revenue on May 1, 20x5

assuming no future services are required by the
franchisor once the franchise starts operations is?

10 Under PFRS 15, what is the specific point in time when Upon sale of
the consignor satisfies its performance obligation under consigned goods by
consignment contract? consignee to final
customers

11 In a statement of financial affairs: Both statements are

true
I. Assets pledged for partially secured creditors
are offset against partially secured creditors.
II. A company’s assets should be valued at net
realizable value, whether higher or lower than
historical cost.

12 Sino, Inc. works on a P10,500,000 contract in 2020 to 1,134,000

construct an office building. During 2020, Sino, Inc.
uses the cost-to-cost method. At December 31, 2020, nasearch
the balances in certain accounts were:

How much is the realized gross profit in 20202?

13 On June 1, Sino Company shipped 25 television sets to 157,500

Lee, inc. on consignment. The sets are to be sold at an
advertised price of P20,000. The cost of each set to the
consignor was P10,000. The cost of shipment paid by
the consignor was P7,500. The consignor agreed to
absorb the consignee’s expenditure for freight and also
to allow the consignor P1,000 for delivery and
installation of each set. Commission is to be 25% of the
sales price. On June 30, Lee submitted the following
summary of consignment sales:

Compute the inventory value of the units unsold in the

hands of the consignee:

14 For the current year, a Sri Lankan subsidiary reported a 176,088

beginning FIFO inventory of 40,000 Rupee, purchases
of 300,000 Rupee, and an ending FIFO inventory of
30,000 Rupee. The exchange rate for the Sri Lankan
Rupee was 0.5325 on JAnuary 1, and 0.5854 on
December 31. The average rate for the year was
0.5745. What is the cost of goods sold in Philippine
peso?

15 On January 1, 2016, an entity purchased a tract of Carrying amount

vacant land that is situated overseas for Baht 90,000. of investment
The entity classified the land as investment property. property = P210
The fair value of the land at December 31, 2013 is Baht 000. Profit for the
100,000. The entity’s functional currency is Php (Peso). year includes
P30,000 increase
in the fair value of
investment
property.

16 Sino Corporation filed a bankruptcy petition in January

2013. On March 1, 2013 the trustee provided the
following information about the corporation’s financial 140,000 na search
affairs:

What is the amount expected to be available for

unsecured claims without priority?
17 On July 1, 2031, Sino Company, a construction
company, entered a contract to construct a commercial
building for a customer on customer-owned land for
promised consideration of P1,000,000 and a bonus of
P200,000 if the building is completed within 24 months.

Under IFRS 15, realized gross profit to be recognized

by Sino Company for the year ended December 31,
2032 is?

18 The following information applies to Sino COrporation’s

sale of 100,000 foreign currency units under a forward
contract dated November 1, 2013 for delivery on 400
January 31, 2014:
nasearch
Sino entered into the forward contract to speculate in
the foreign currency. In Sino’s statement of CI for the
year December 31, 2013, what amount of forex loss
should be reported from this forward contract?

19 Sino Inc. charges an initial fee of P70,000. Upon

signing of the agreement (which covers 3 years), a
payment of P28,000 is due. Thereafter, three annual 62,816
payments of P14,000 are required. The credit rating of
the franchise is such that it would have to pay interest nasearch
at 10% to borrow money

The amount of franchise revenue on July 1, 20x5 is?

20 The exchange rate for converting foreign entity’s Spot rate

retained earning into Philippine pesos is:

21 Unrealized holding gain or loss on intrinsic value Other

(effective portion) of derivatives designated as cash comprehensive
value hedge shall be recognized in income with
reclassification
adjustment

22 Sino Corporation started a subsidiary in New Zealand; 140,000

the subsidiary had the NZ Dollar as its functional positive(credit)
currency.

In preparing consolidated financial statements, what

exchange difference (translation adjustment) on
translation foreign operation will be reported at the end
of 2013?

23 The following data were taken from statement of affairs 1,059,625

of Sino Company:
nasearch
How much is the total free assets?

24 Sino, a money changer, speculates on foreign currency 500 1,500?

as his business. On October 1, 2013, Sino bought a
180-day forward contract to purchase 5,000 USD at a
forward rate of $1 = P56.50 when the spot rate was
P56.00. Other exchange rates were as follows:

The foreign gain (loss) recognized by Sino from this

forward contract is:
25 Under PFRS 15, when shall a franchisor recognize Either A or B When the franchisor
revenue from its initial franchise fee also known as has satisfied its
upfront fee? performance
obligation at a
certain point in time

26 When treating exchange differences, what is included Exchange A and B

in income for the period? differences arising
from the translation
of a foreign
operation previously
classified in equity

27 When is the new effective date of IFRS 17? January 1, 2023

28 In 20x1, the Sino Co. started work on a P5m fixed price

contract. Information on the construction is shown
below:

Under IFRS 15, how much loss provision would be

recognized for the year 20x2?

29 On July 1, 2031, Sino Company, a construction 1,012,500

company, entered a contract to construct a commercial
building for a customer on customer-owned land for
promised consideration of P1,000,000 and a bonus of
P200,000 if the building is completed within 24 months.

Under IFRS 15, what is the balance of Construction in

Progress as of December 31, 2032?

30 Sino Company, a local company, bought raw materials 1,732,500

as ingredients in its production from Vac Corporation, a
US company, for 35,000 USD in 2020. Pertinent
exchange rates relating to this transaction are as
follows:

What is the value of the inventory, assuming it is not yet

sold as of settlement date?

31 Sino Corporation purchases merchandise from Vac 20,000

Company of France for 1,000,000 Franc. The
merchandise was received on December 1, 2013 with
payment due in 60 days on January 30, 2014. Also on
December 1, 2013, Sino entered into a 60-day forward
contract with the Bank to purchase the necessary
1,000,000 Franc for delivery on January 30, 2014 to
hedge the Lacoste transaction. Exchange rate for
Franc on selected date are as follows:

What is the net forex gain (loss) front his transaction

and hedge that will be reported in Sino's 2013
statement of comprehensive income?

32 Sino Company, a local company, bought raw materials 72,250 gain

as ingredients in its products from Vac Corporation, a
US company, for 35,000 USD in 2020. Pertinent
exchange rates relating to this transaction are as
follows:

What is the foreign exchange gain or loss of Sino

Company for 2020?

33 An interim trustee was appointed by the court regarding (2,330,000)

the administration of the estate of Sino and is to nasearch
prepare a preliminary report. Presented below is its
Statement of Financial Position before the start of
liquidation:

What is the estimated gain/(loss) on the realization of

the building?

34 When a contract outcome cannot be estimated reliably, Recognize revenue

which action should be taken relative to recognizing only to the extent of
 revenue? costs incurred that is
virtually certain will
be recoverable

35 On June 1, Sino Company shipped 25 television sets to

Lee, inc. on consignment. The sets are to be sold at an
advertised price of P20,000. The cost of each set to the
consignor was P10,000. The cost of shipment paid by
the consignor was P7,500. The consignor agreed to
absorb the consignee’s expenditure for freight and also
to allow the consignor P1,000 for delivery and
installation of each set. Commission is to be 25% of the
sales price. On June 30, Lee submitted the following
summary of consignment sales:

Compute the profit for the consignor for the units sold:

TEAM VIRGINS

Complete Answer Pleaseee. Thank youuu

NO QUESTIONS ANSWER 1 ANSWER 2 if

. unsure answer 1

1 Sino company purchased inventory on November 30,000 nasearch If loss kay 50,000
30,2018 for 10,000 payable on March 1,2019. On na search
december 1,2018, the entity entered a forward contract coursehero
to purchase 10,000 in 90 days to hedge the purchase of
inventory on November 30,2018. The Relevant exchange
rates are

Spot rate Forward rate

November 30, 45 47
2018

December 1, 46 48
2018

December 31, 50 51
2018
What amount of foreign currency transaction gain from
the forward contract should be included in net income for
2018

2 Sino Corporation, subsidiary, buys marketable equity MES 19,000

securities (MES) and inventory on April 1, 2020 for INVENTORY 16,000
100,000 foreign currencies (FC) each

3 Sino Inc. charges an initial fee of P70,000.Upon signing 62,816

of the agreement (which covers 3 years), a payment of
P28,000 is due. Thereafter, three annual payments of
P14,000 required.The credit rating of the franchisee is
such that it would have to pay interest at 10% to borrow
money.
 The amount of franchise revenue on July 1, 20x5 is?

4 An interim trustee was appointed by the court regarding (2,330,000)

the administration of the estate of the estate of Sino
andis to prepare a preliminary report. Presented below is
its statement of Financial position before the start of
liquidation

Cash, 4,050,000 Notes 750,000

Payable

Machinery 3,750,000 Income 2,250,000

and payable
equipment

Building 7,200,000 Income tax 1,500,000

payable

Loan 3,000,000
Payable

Mortgage 3,750,000
payable

Contributed 6,000,000
capital

Deficit (2,250,000)

It is expected that administrative expenses amounting to

400,000 will be paid. The loan payable is secured by the
Machinery & Equipment which is estimated to be Sold at
2,250,000 . the Mortgage payable is fully secured by the
estimated realizable value of the building. At the end of
the liquidation, the estimated percentage settlement to
the partially secured creditor is 92%

What is the estimated gain/loss on the realization of

the building?

5 Sino corporation purchases merchandise from Vac 20,000

Company of France for 1,000,000 Franc. The
merchandise is received on December 1, 2013 with
payment due in 60 days on January 30,2014. Also on
December 1, 2013, Sino enters into a 60-day contract
with the Bank to purchase the necessary 1,000,000
Franc for delivery on January 30, 2014 to hedge the
Lacoste transaction. Exchange rates for Franc on
selected dates are as follows:

12/1/2013 12/31/2013 1/30/2014

Spot rate 6.01 6.16 6.01

30-day 6.05 6.07 6.07

futures

60-day 6.06 6.08 6.08

futures
What is the net forex gain (loss) from this transaction and
hedge that will be reported on Sino’s 2013 statement of
comprehensive income?

6 Sino Corporation starts a subsidiary in New Zealand; the 140,000 positive

subsidiary had the NZ Dollar as its functional
currency.On January 1, 2013, Sino acquired all of the
subsidiary common stock for 20,000 NZ Dollar.On April
1, 2013, the subsidiary purchased inventory for 20,000
NZD with payment made on May 1,2013.
 In preparing the consolidated financial statements, what
exchange difference( translation adjustment) on
translating foreign operation will be reported at the end of
2013?

7 (Same problem with #4) 5,170,000

An interim trustee was appointed by the court regarding
the administration of the estate of the estate of Sino
andis to prepare a preliminary report. Presented below is
its statement of Financial position before the start of
liquidation:

How much is the amount of the total free assets?

8 The following data were taken from statement of affairs of 1,059,625

Sino Company: (nasearch)
● Unsecured liabilities with priority - P122,500
● Stockholders’ equity - 441,000
● Estimated liquidation expenses - P55,125
● Unsecured liabilities without priority - P1,102,500
● Loss on realization of assets - P551,250
How much is the total free assets?

9 Sino Corporation, subsidiary, buys marketable equity MES 19,000

securities (MES) and inventory on April 1, 2010 for Inventory 19,000
100,000 foreign currencies (FC) each. It pays both items
on June 1, 2010, and they are still on hand at year-end.
Inventory is carried at cost under the lowest-of-cost-or-
market rule. Currency exchange rates for 1 FC follow:
January 1, 2010: 0.15 = 1 FC
April 1, 2010: 0.16 = 1 FC
June 1, 2010: 0.17 = 1 FC
December 31, 2010: 0.19 = 1 FC

10 Sino company, a local company, bought raw materials as 1,652,000 - receipt

ingredients in its production from VAC corp. A us of order
company, for 35,000 usd in 2020 Or
1660,750 - date of
Receipt of order 47.10 47.20 shipment
Date of shipment 47.25 47.45
Balance sheet date 49.50 49.60
Settlement date 49.45 49.50

11 On January 1, 2016, an entity purchased a tract of vacant Carrying amount of

land that is situated overseas for Baht90,000. The entity investment property
classified the land as investment property. The fair value = 210,000. Profit for
of the land at December 31, 2013 is Baht100,000. The the year includes
entity’s functional currency is Php (peso). 30,000 increase in
the fair value of the
investment property.

12 On July 1, 2031, Sino Company, entered a contract to 217,500

construct a commercial building for a customer on
customer-owned land for the promised consideration of
P1,000,000 and a bonus of P200,000 if the building is
completed within 24 months.

Under IFRS 15, realized gross profit to be recognized

by Sino Company for the year ended December 31,
2032 is?

13 Aside from the initial amount of revenue areed in the Gain on sale of
long-term construction contract, additional revenues may scrap materials
be recognized by the contractor (1) to the extent that it is
probable that they will result in revenue and (2) they are
capable of being reliably measured. Which of the
following will not be considered as an additional contract
revenue by a contractor?

14 Under PFRS 15, what is the specific point in time when Upon sale of
the consignor satisfies its performance obligation under consigned goods by
consignmnet contract consignee to final
 consumers

15 Unrealized holding gain or loss on intrinsic value Other

(effective portion) of derivatives designated as cash value comprehensive
hedge shall be recognized in income without
reclassification
adjustment

16 Sino, Inc. works on a P10,500,000 contract in 2020 to 1,134,000

construct an office building. During 2020, Sino, Inc. uses
the cost-to-cost method. At December 31, 2020, the
balances in certain accounts were:
Construction in progress - 3,780,000
A/R - 360,000
Billings on CIP - 1,800,000
Contract retention - 180,000
Mobilization fee - 140,000
At Dec. 31, the estimated cost at completion is
7,350,000

How much is the realized gross profit in 2020?

17 Under PFRS 15, when shall a franchisor recognize Either A or B

revenue from its initial franchise fee also known as
upfront fee?

18 When treating exchange differences, what is included in A and B

income for the period?

19 In 20x1, the Sino Co.started work on a P5m fixed price 10,000 115,000 - if gross
contract. Information on the construction is shown below: profit

20x1 20x2 20x3

Cost incurred P1,425,000 P2,615,000 P1,040,000

per year

Estimated 3,325,000 1,010, 000 -

costs to
complete

Under IFRS 15, how much loss provision would be

recognized for the year 20x2?

20 Sino, a money changer speculate in foreign currency as

his business. On October 1, 2013, Sino bought a 180-day
forward contract to purchase 5,000 USD at a forward rate
of $1= 56.50. When the spot rate was 56. Other
exchange rates were as follows:

December 31, 2013 spot rate 56.30

Forward rate for march31, 2014 56.60
March 31, 2014 spot rate 56.32

The Forex gain or loss recognized by Sino from his

forward contract is:

21 When a contract outcome cannot be estimated reliably, Recognize revenue

which action should be taken relative to recognizing only to the extent of
revenue? costs incurred is
virtually recoverable

22 On july 1, 2031 sino company a construction company 1,012,500

entered a contract to construct commercial building for a
customer on customer-owned land for promised
consideration 1,000,000 and a bonus of 200,000 if the
building is completed within 24 months
 Under IFRS 15, what is the balance of construction in
progress as of december 31,2032

23 The exchange rate for converting foreign entity’s retained Spot rate
earnings into Philippine pesos is:
● Current rate
● Spot rate
● Historical rate
● Average rate

24 Sino company purchased inventory on November 50,000

30,2018 for 10,000 payable on March 1,2019. On
december 1,2018, the entity entered a forward contract
to purchase 10,000 in 90 days to hedge the purchase of
inventory on November 30,2018. The Relevant exchange
rates are

Spot rate Forward rate

November 30, 2018 45 47

December 1, 2018 46 48

December 31, 2018 50 51

What amount of foreign currency transaction loss from
the forward contract should be included in net income for
2018

25 Sino company, alocal company, bought raw materials as 75,250 loss 75,250 loss
ingredient in its product…., a us company, for 35,000 usd
in 2020.

Receipt of order 47.10 47.2

Date of shipment 47.25 47.45
Balance sheet date 49.50 49.60
Settlement date 49.45 49.50
What is the foreign exchange gain or loss of sino for
2020

26 For the current year, a Sri Lankan subsidiary reported a 176,088

beginning FIFO inventory of 40,000 Rupee, purchases of
300,000 Rupee, and an ending FIFO inventory of 30,000
Rupee. The exchange rate for the Sri Lankan Rupee was
0.5325 on January 1, and 0.5854 on December 31. The
average rate for the year was 0.5745. What is the cost of
goods sold in Philippine peso?

27 Sino corporation filed a bankruptcy petition in January

2013. On mach 1,2013 the trustee provided the following 300,000
information about the corporation financial affairs

Cash 40,000 40,000

AR 200,000 150,000

Inventories 300,000 140,000

 Property and equipment 500,000 560,000

Total asset 1,040,000

Liabilities

With priority claims 160,000

Unsecured AP 300,000

NP 200,000

Mortgage 440,000

Total liability 1,100,000

What is the amount expected to be available for
unsecured claims without priority

28 In a statement of financial affairs: Both statements are S1 true

I. Assets pledged for partially secured creditors are true S2 false
offset against partially secured creditors.
II. A company’s assets should be valued at net
realizable value, whether higher or lower than
historical cost.

29 The following information applies to Sino Corporation’s 300

sale of 10,000 foreign currency units under a forward
contract dated November 1, 2013 for delivery on January
31, 2014:

Nov. 1, 2013 Dec. 31, 2013

Spot rates 0.80 0.83

30-days futures 0.79 0.82

90-days futures 0.78 0.81

Sino entered into the forward contract to speculate in the

foreign currency. In Sino’s statement of CI for the year
December 31, 2013, what amount of forex loss should be
reported from this forward contract?

30 When is the new effective date of IFRS 17? Jan 1, 2023

31 On June 1, Sino Company shipped 25 televisions to Lee 157,500

Inc. on consignment. The sets are to be sold at an
advertised price of 20,000. The cost of each set to the
consignor is 10,000. The cost of shipment paid by the
consignor was 7,500. The consignor agreed to absorbed
the consignee’s expenditure for freight and to allow the
consignee 1,000 for delivery and installation of each set.
Commission to be 25% of the sales price. On June 30,
Lee submitted the summary of consignment sales:
Sets received 25

Sets sold (8)

Sets returned to consignor (defective) (2)

Sets on hand 15

June 3-30 sales, 8 sets @ 20,000 160,000

freight-in (5,000)
 Deliveries and installation expenses (8,000)

Commissions, 25% of sales (40,000)

107,000

Remittance removed 25,000

Balance owed (Collections from 82,000

customers not yet made)
Compute the inventory value of the units unsold in the
hands of the consignee:

32 Sino charges an initial fee of P70,000. Upon signing of 0

the agreement (which covers 3 years), a payment of
P28,000 is due. Thereafter, three annual payments of
P14,000 are required. The credit rating of the franchisee
is such that it would have to pay interest at 10% to
borrow money. The franchise agreement signed on May
1, 20x5, and the franchise commences operation on July
1, 20x5.

The amount of franchise revenue on May 1, 20x5

assuming no future services are required by the
franchisor once the franchise starts operations is?

33 Franchise Accounting - PFRS 15 provides that initial When the franchisee

franchise fee shall be recognized as revenue over time has legal title to the
(percentage of completion) if any of the following criteria franchise and has
provided below is met. Which of the following indicator the significant risks
shows that the initial franchise fee shall be recognized as and rewards of
revenue at a point in time instead of over time? ownership of the
franchise (sure)

34 On June 1, Sino Company shipped 25 televisions to Lee 27,000

Inc. on consignment. The sets are to be sold at an
advertised price of 20,000. The cost of each set to the
consignor is 10,000. The cost of shipment paid by the
consignor was 7,500. The consignor agreed to absorb
the consignee’s expenditure for freight and to allow the
consignee 1,000 for delivery and installation of each set.
Commission to be 25% of the sales price. On June 30,
Lee submitted the summary of consignment sales:
Sets received 25

Sets sold (8)

Sets returned to consignor (defective) (2)

Sets on hand 15

June 3-30 sales, 8 sets @ 20,000 160,000

freight-in (5,000)

Deliveries and installation expenses (8,000)

Commissions, 25% of sales (40,000)

107,000

Remittance removed 25,000

Balance owed (Collections from 82,000

customers not yet made)

Compute the profit of the consignor for the units sold:

35 An entity shall apply IFRS 17 to all but one of the Insurance contracts,
following: excluding
reinsurance
contracts, it issues