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1.
IT IS THE CONTRACTUALLY SHARING OF CONTROL OVER AN ECONOMIC ACTOVITY
ANS: JOINT CONTROL
2. JOINT VENTURES CAN TAKE MANY FORMS AND STRUCTURES. ALL ARE DISTINCT TYPES OF JOINT
VENTURE, EXCEPT?
ANS: JOINT CONTROLLED INTERESTS
3. IT IS A FORM OF JOINT VENTURE, WHERE EACH VENTURER SHOUKD RECOGNIZED IN ITS

SEPARATE FINANCIAL STATEMENTS ALL ASSETS
ANS: JOINT CONTROLLED OPERATIONS
4. IT IS PARTY TO A JOINT VENTURE AND DOES NOT HAVE JOINT CONTROL OVER THAT JOINT
VENTURE.
ANS: INVESTORE IN A JOINT VENTURE
5. UNDER PROPORTIONATE CONSOLIDATION, THE MINORITY INTEREST IN THE VENTURE IS
ANS: NOT INCLUDED IN THE FINANCIAL STATEMENTS OF THE VENTURE
6. WHICH OF THE FOLLOWING STATEMENTS ABOUT PAS 31, INTEREST IN JOINT VENTURES IS
INCORRECT?
ANS: PAS 31 REQUIRES PROPORTIONATE CONSOLIDATION OR THE EQUITY METHOD
7. WHICH OF THE FOLLOWING METHODS OF ACCOUNTING FOR ITS SHARE OF EACH OF THE JOINT
VENTURE’S ASSET AND LIABILITIES ARE AVAILABLE
ANS: METHODS 1, 2, AND 3
8. THE FLAME CO. AND TALL CO. OWNS 60% AND 40% RESPECTIVELY OF THE EQUITY OF THE LOOP
CO. ARE THE FOLLOWING STATEMENTS TRUE OF FALSE, ACCORDING TO IAS 27, CONOLIDATED
AND SEPARATE FINANCIAL STATEMENTS, IAS 28, INVESTMENT IN ASSOCIATES AND IAS 31,
INTEREST IN JOINT VENTURE?
ANS: STATEMENT 1 AND 2 – BOTH FALSE
9. STATEMENT 1 THE VENTURES MUST HAVE A CONTRACTUAL ARRANGEMENT AS TO HOW

STRATEGIC DECISIONS IN RESPECT OF A JOINT VENTURE ARE TO BE MADE
STATEMENT 2 MAJORITY VOTING IS ACCEPTABLE FOR STRATEGIC DECISIONS IN RESPECT OF A
JONT VENTURE
ANS: STATEMENT 1 – FALSE STATEMENT 2 – TRUE
10. THE WIND CO. HAS CORRECTLY CLASSIFIED ITS INVESTMENT IN AIR CO. AS AN INVESTMENT IN A
JOINT VENTURE. WIND’S STATEMENT OF FINANCIAL POSITION SHOWS DEBT OF P500,000. ARE
THE FOLLOWING STATEMENTS TRUE OR FALSE, ACCORDING TO IAS 31, INTEREST IN JOINT
VENTURE?
ANS: BOTH SATEMENTS ARE FALSE

11. ON JANUARU 1, 2013, WILKINS, INC. AND XYLO, INC. AGREED TO COMBINE THEIR BUSINESSES
BU ESTABLISHING A SEPARATE VEHICLE (BREMM, INC.) BOTH PARTIES EXPECT THE
ARRANGEMENT TO BENEFIT THEM IN DIFFERENT WAYS. WILKINS BELIEVES THAT THE
ARRANGEMENT COULD. WHAT IS THE EQUITY METHOD BALANCE OF WILKIN’S INVESTMENT IN
BREMM, INC. AT DECEMBER 31, 2014
ANS: 728,000
12. ON JANUARY 1, 2013, TWO REAL ESTATE COMPANIES (THE PARTIES – PACKET COMPANY AND
SOCKET COMPANY) SET UP A SEPARATE VEHICLE (HARRISON COMPANY) FOR THE PURPOSE OF
ACQUIRING AND OPERATING A SHOPPING CENTER. WHAT IS THE BALANCE IN THE INVESTMENT
IN HARRISON ACCOUNT FOND IN PACKET’S FINANCIAL RECORDS AS OF DECEMBER 31, 2013?
ANS: 1,724,000
13. JANUARY 1, 2013 ENTITIES X AND Y EACH ACQUIRED 30 PERCENT OF THE ORDINARY SHARES
THAT CARRY VOTING RIGHTS AT A GENERAL MEETING OF SHAREHOLDERS OF ENTITY O FOR
P300,000. AT DECEMBER 31, 2013, ENTITY X WOULD REPORT ITS INVESTMENT IN ENTITY O AT:
ANS: 419,000
14. ON JANUARY 1, 2013 ENTITIES M AND N EACH ACQUIRED 30 PERCENT OF THE ORDINARY
SHARES TAT CARRY VOTING RIGHTS AT A GENERAL MEETING OF SHAREHOLDERS OF ENTITY Z
FOR P300,000. ENTITIES M AND N ACCOUNT FOR ITS INVESTMENT IN ENTITY Z USING THE
EQUITY METHOD.
ANS:439,000
15. ON JANUARY 1, 2013 ENTITIES A AND B (THE VENTURES) FORM A JOINT VENTURE (ENTITY X).
UPON INCORPORATION OF ENTITY X, ENTITIES A AND B EACH TAKE UP TO 50 PERCENT SHARE
CAPITAL OF ENTITY X. WHAT IS THE COST OF INVESTMENT OF ENTITY A ON DECEMBER 31,
2013?
ANS: 106,000
16. ON MARCH 1, 2013 ENTITIES A AND B EACH ACQUIRED 30 PERCENT OF THE ORDINARY SHARES
THAT CARRY VOTING RIGHTS AT A GENERAL MEETING OF SHAREHOLDERS OF ENTITY Z FOR
P300,000 ENTITIES A AND B IMMEDIATELY AGREED TO SHARE CONTROL OBER ENTITY Z.
ANS: 285,000
17. THE PLDT GROUP COMPRISES THE SMART AND ITS 75% OWNED SUBSIDIARY, KA-TALK CO. THE
PLDT ALSO OWNS ONE-THIRD OF THE EQUITY OF THE KA-TALK CO AND HAS SIGNED A
CONTRACT WITH OTHER EQUITY HOLDERS IN KA-TALK CO. THE CARRYING AMOUNTS OF TRADE
RECEIVABLES IN THE SEPARATE FINANCIAL STATEMENTS OF THESE COMPANIES AT DECEMBER
31, 2008 ARE: WHAT CARRYING AMOUNT OF TRADE RECEIVABLES SHOULD BE PRESENTED IN
THE CONSOLIDATED FINANCIAL STATEMENTS OF PLDT CO.?
ANS: 1,400,000
18. DD, EE AND FF FORMED A JOINT ARRANGEMENT IN 2013 AND AGREED TO DIVIDE PROFITS AND
LOSSESS EQUALLY. THE COST OF UNSOLD MERCHANDISE CHARGED TO DD IS:
ANS: 19,500
19. PINOY AND BIG BROTHER FORMED A JOINT VENTURE TO SELL SECOND HAND HOME
APPLIANCES BY INVESTING SUFICIENT CASH. THEY AGREED TO SHARE PROFITS AND LOSSESS
EQUALLY. HOW MUCH IS JOINT VENTURE PROFIT?
ANS: 230,000
20. X IS THE MANAGER OF THE JOINT VENTURE X, Y, AND X, WHICH THEY DECIDED TO LIQUIDATE.
BEFORE DISSOLUTION AND LIQUIDATION, THE FOLLOWING ACCOUNTS APPEAR IN THE BOOKS
OF X: WHAT WERE THE JOINT VENTURE’S PROFITS (LOSSES)?
ANS: 6,000

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1.

IT IS THE CONTRACTUALLY SHARING OF CONTROL OVER AN ECONOMIC ACTOVITY

ANS: JOINT CONTROL

ANS: JOINT CONTROLLED INTERESTS

3. IT IS A FORM OF JOINT VENTURE, WHERE EACH VENTURER SHOUKD RECOGNIZED IN ITS

ANS: JOINT CONTROLLED OPERATIONS

ANS: INVESTORE IN A JOINT VENTURE

5. UNDER PROPORTIONATE CONSOLIDATION, THE MINORITY INTEREST IN THE VENTURE IS

ANS: NOT INCLUDED IN THE FINANCIAL STATEMENTS OF THE VENTURE

ANS: PAS 31 REQUIRES PROPORTIONATE CONSOLIDATION OR THE EQUITY METHOD

ANS: METHODS 1, 2, AND 3

ANS: STATEMENT 1 AND 2 – BOTH FALSE

9. STATEMENT 1 THE VENTURES MUST HAVE A CONTRACTUAL ARRANGEMENT AS TO HOW

ANS: STATEMENT 1 – FALSE STATEMENT 2 – TRUE

ANS: BOTH SATEMENTS ARE FALSE

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