1. Compliance with the IFRS is enforced by:
a. FASB, b. government regulators, c. IAS, or d. IASB
2. Under IFRS unrealized holding gains and losses onheld-for-trading equity investments of less than 20 percent arerecorded in _____, and unrealized holding gains and losses onnon-trading equity investments of less than 20 percent are recordedin _______.
a. net income; net income. b. net income; other comprehensiveincome. c. other comprehensive income; net income. d. othercomprehensive income; other comprehensive income
3. ABC co. purchases XYZ Co. for less than the fair value of XYZCo.'s net assets (ie. a bargain purchase). How should ABC co.record the difference between the fair value of XYZ Co's net assetsand the purchase price?
a. amortization expense. b. gain. c. goodwill. d. loss
4. On December, 31 2018, Buthainah Corp. owned a patent. Thecarrying amount of the patent (following the amortization journalentry on December 31, 2018) is 100,000/ The recoverable amount ofthe patent is determined to be $70,000. Which of the following istrue regarding the journal entry that Buthainah Corp. should recordon December 31, 2018.
a. Debit to loss on impairment of $30,000. b. credit to patentof $30,000. c. debit to goodwill of $30,000. d. both A and B arecorrect
5. Danah Corp. has three intangible assets (two patents andgoodwill) on December 31, 2018. There is no impairment of any ofthe three intangible assets/ One patent has a carrying value of$20,000, one patent has a carrying value of $30,000, and thegoodwill amount is $10,000. How should the three intangible assetsbe presented on the statement of financial position?
a. each intangible asset should be listed separately. b. allintangible assets should be grouped together in one intangibleassets account. c. the two patents should be grouped together inone intangible assets account and goodwill should be listedseparately. d. the threee intangible assets do NOT belong on thestatement of financial position.
