MCQ Bank
The IAS32 classifies financial instruments that have characteristics of both debt and equity as ___________.
- A) convertible
- B) hybrid
- C) compound
- D) derivative
In preparing consolidated financial statements, if goods are in transit at the reporting date, the receiving entity must recognize them to align the famous ___________ principle.
- A) matching
- B) substance
- C) accrual
- D) realization
Under IFRS 9, changes in the fair value of a derivative used in a fair value hedge are recognized in ____________.
- A) profit
- B) reserve
- C) OCI
- D) equity
IAS 32 allows to recognise interest, dividends, gains, and losses related to a financial liability in ______________.
- A) reserve
- B) equity
- C) profit
- D) statement
A holds 80% in B and B holds 60% in C and A also holds 40% in C. A gets total holding of ________ in the group.
- A) 28%
- B) 88%
- C) 48%
- D) 68%
While preparing consolidated financial statements, any intra-group sales between the parent and subsidiary must be eliminated in full to uphold fundamental consolidation principle of ___________.
- A) entity
- B) recognition
- C) elimination
- D) realization
As per IAS 32, an issued financial instrument is classified as a financial liability if it contains a contractual obligation to deliver _____________
- A) asset
- B) cash
- C) dividend
- D) shares
Non-controlling interest should be presented in equity but separate from the ________ equity.
- A) debtholder’s
- B) minor’s
- C) stakeholder’s
- D) stockholder’s
For consolidated financial statements, contingent liabilities of a subsidiary must be adjusted to fair value even if they are not recognized in the subsidiary’s own accounts due to their __________.
- A) contingency
- B) omission
- C) judgment
- D) timing
Under IAS 32, the classification of a compound instrument requires separation of liability and ___________.
- A) asset
- B) risk
- C) equity
- D) value
A company being a ___________ entity qualifies itself to present its financial statements separately under IAS 27.
- A) investor
- B) parent
- C) associate
- D) subsidiary
A financial instrument that contains both a contractual obligation and an equity component is classified as ___________.
- A) compound
- B) derivative
- C) convertible
- D) contingent
Consolidation of financial statements starts by ________ the intergroup balances and transactions.
- A) eliminating
- B) delimiting
- C) demarketing
- D) decomposing