©SIRJOEL EXAM SOLUTIONS
10/7/2024 11:03AM
Advanced Financial Accounting and
Reporting Theories
Derivatives Gain or Loss - answer✔Changes in value presented in OCI with reclassification
adjustment if realized
Exchange Differences Treatment - answer✔Translated in OCI with/without reclassification
adjustment or in profit/loss
Nonprofit Operating Activities - answer✔Cash flows like service bus acquisition payment
classified as operating
Budget Legislation Phase - answer✔Enactment of General Appropriations Act by Congress in
budget process
Equivalent Unit Production - answer✔FIFO vs. Average Process direct materials addition timing
Parent Corp Investment Income - answer✔Income items in separate statement using cost method
for subsidiary
Business Control Acquisition - answer✔Accounting treatment under PFRS 3 for acquirer
obtaining control
Foreign Currency Translation - answer✔Exchange rate for translating foreign asset into
functional currency under PAS 21
Corporate Liquidator Settlement - answer✔Priority in settling credits during dissolved
corporation winding up
Retiring Partner Capital Balance - answer✔Reason for remaining partners' capital decrease post-
retirement
Cost of Goods Sold Increase - answer✔Factor increasing COGS like decrease in finished goods
inventory
, ©SIRJOEL EXAM SOLUTIONS
10/7/2024 11:03AM
Incorporating Entity Interests - answer✔Accounting for interests in Entity C by Entity A and B
under agreements
Home Office Branch Transaction - answer✔Transaction resulting in credit to home office
account in branch's books
Skyway Development Accounting - answer✔SLEX Incorporated's accounting for skyway
development under contract
Direct Labor Variance - answer✔Net unfavorable variance with higher standard hours than
actual hours
Direct labor cost - answer✔The cost associated with the actual direct labor hours rendered,
including wages and benefits.
Revenue recognition under PFRS 15 - answer✔Recognition occurs when it is probable that
future economic benefits will flow to the entity and the fair value of revenue can be reliably
measured.
Balance of construction in progress - answer✔The amount computed under the cost recovery
method may be higher than under the percentage of completion method in specific scenarios.
Excess of net installment receivable - answer✔The difference between the net installment
receivable and the fair value of repossessed inventory due to default, with various accounting
treatments.
Acquisition costs under PFRS 3 - answer✔Costs related to the acquisition of an acquiree, such as
finder's fee, professional fees, etc., and their accounting treatment.
Measurement basis of revenue under PFRS 15 - answer✔Revenue is measured based on the fair
value of the consideration received or receivable from the contract with customers.
Cost of goods manufactured - answer✔Transactions that increase the cost of goods
manufactured, impacting financial statements for the year.
Liquidation of general partnership - answer✔The order in which claims are settled during the
liquidation process of a general partnership.
Balance of construction in progress comparison - answer✔Determining when the balance under
percentage of completion method equals the balance under cost recovery method.
Liquidation of stock corporation - answer✔The order in which claims are settled during the
liquidation process of a stock corporation.
10/7/2024 11:03AM
Advanced Financial Accounting and
Reporting Theories
Derivatives Gain or Loss - answer✔Changes in value presented in OCI with reclassification
adjustment if realized
Exchange Differences Treatment - answer✔Translated in OCI with/without reclassification
adjustment or in profit/loss
Nonprofit Operating Activities - answer✔Cash flows like service bus acquisition payment
classified as operating
Budget Legislation Phase - answer✔Enactment of General Appropriations Act by Congress in
budget process
Equivalent Unit Production - answer✔FIFO vs. Average Process direct materials addition timing
Parent Corp Investment Income - answer✔Income items in separate statement using cost method
for subsidiary
Business Control Acquisition - answer✔Accounting treatment under PFRS 3 for acquirer
obtaining control
Foreign Currency Translation - answer✔Exchange rate for translating foreign asset into
functional currency under PAS 21
Corporate Liquidator Settlement - answer✔Priority in settling credits during dissolved
corporation winding up
Retiring Partner Capital Balance - answer✔Reason for remaining partners' capital decrease post-
retirement
Cost of Goods Sold Increase - answer✔Factor increasing COGS like decrease in finished goods
inventory
, ©SIRJOEL EXAM SOLUTIONS
10/7/2024 11:03AM
Incorporating Entity Interests - answer✔Accounting for interests in Entity C by Entity A and B
under agreements
Home Office Branch Transaction - answer✔Transaction resulting in credit to home office
account in branch's books
Skyway Development Accounting - answer✔SLEX Incorporated's accounting for skyway
development under contract
Direct Labor Variance - answer✔Net unfavorable variance with higher standard hours than
actual hours
Direct labor cost - answer✔The cost associated with the actual direct labor hours rendered,
including wages and benefits.
Revenue recognition under PFRS 15 - answer✔Recognition occurs when it is probable that
future economic benefits will flow to the entity and the fair value of revenue can be reliably
measured.
Balance of construction in progress - answer✔The amount computed under the cost recovery
method may be higher than under the percentage of completion method in specific scenarios.
Excess of net installment receivable - answer✔The difference between the net installment
receivable and the fair value of repossessed inventory due to default, with various accounting
treatments.
Acquisition costs under PFRS 3 - answer✔Costs related to the acquisition of an acquiree, such as
finder's fee, professional fees, etc., and their accounting treatment.
Measurement basis of revenue under PFRS 15 - answer✔Revenue is measured based on the fair
value of the consideration received or receivable from the contract with customers.
Cost of goods manufactured - answer✔Transactions that increase the cost of goods
manufactured, impacting financial statements for the year.
Liquidation of general partnership - answer✔The order in which claims are settled during the
liquidation process of a general partnership.
Balance of construction in progress comparison - answer✔Determining when the balance under
percentage of completion method equals the balance under cost recovery method.
Liquidation of stock corporation - answer✔The order in which claims are settled during the
liquidation process of a stock corporation.
