Question 1

IFRS 11, provides that joint control exists where:

Accepted Answer

A)  no single party is in a position to control the activity unilaterally; 
B)  the decisions in areas essential to the goals of the joint arrangement do not require the consent of the parties; 
C)  no one party may be appointed as the manager of the joint arrangement; 
D)  one party alone has power to control the strategic operating decisions of the joint arrangement. 
A)  no single party is in a position to control the activity unilaterally; 
B)  the decisions in areas essential to the goals of the joint arrangement do not require the consent of the parties; 
C)  no one party may be appointed as the manager of the joint arrangement; 
D)  one party alone has power to control the strategic operating decisions of the joint arrangement.

Question 2

When a joint operator is accounting for an interest in joint operation it is required to recognise all of the following in its financial statements: $\begin{array}{lllll}&I&II&III&IV\
\text { The assets that it controls } & \text { Yes } & \text { Yes } & \text { Yes } & \text { Yes } \
\text { The liabilities that it incurs } & \text { Yes } & \text { Yes } & \text { No } & \text { No } \
\text { Its share of income from the sale of goods by the } & \text { Yes } & \text { No } & \text { Yes } & \text { No }\\text { joint operation }\
\text { The expenses that it incurs }& \text { Yes } & \text { No } & \text { No } & \text { No } 
\end{array}$

Accepted Answer

A)  I; 
B)  II; 
C)  III; 
D)  IV. 
A)  I; 
B)  II; 
C)  III; 
D)  IV.

Question 3

Three joint operators agree to an arrangement in which they have an equal share in an agricultural joint operation. The work undertaken in setting up the joint operation cost £300 000 and each operator contributed in cash. Each operator will need to recognise the following accounting entry:

Accepted Answer

A)  $\begin{array} { l c c c } 
\text { DR } & \text { Cost of joint operation product } & £ 300,000 & \
\text { CR } & \text { Cash } &  £ 300,000
\end{array}$ 
B)  $\text { DR \quad Inventory in JO } \quad £ 100,000$
$\text { CR \quad Cash } \quad\quad\quad £ 100,000$ 
C)  $\begin{array} { l r r r } 
\text { DR } & \text { Cash in JO } & £ 300,000 & \
\text { CR } & \text { Cash } & & £ 300,000
\end{array}$ 
D)  $\begin{array} { l r r r } 
\text { DR } & \text { Cash in JO } & £ 100,000 & \
\text { CR } & \text { Cash } &£ 100,000
\end{array}$ 
A)  $\begin{array} { l c c c } 
\text { DR } & \text { Cost of joint operation product } & £ 300,000 & \
\text { CR } & \text { Cash } &  £ 300,000
\end{array}$ 
B)  $\text { DR \quad Inventory in JO } \quad £ 100,000$
$\text { CR \quad Cash } \quad\quad\quad £ 100,000$ 
C)  $\begin{array} { l r r r } 
\text { DR } & \text { Cash in JO } & £ 300,000 & \
\text { CR } & \text { Cash } & & £ 300,000
\end{array}$ 
D)  $\begin{array} { l r r r } 
\text { DR } & \text { Cash in JO } & £ 100,000 & \
\text { CR } & \text { Cash } &£ 100,000
\end{array}$

Question 4

In relation to the supply of a service to a joint operation by one of the joint operators, which of the following statements is correct?

Accepted Answer

A)  a joint operator can recognise 100% of the earned through the supply of services to the joint operation; 
B)  a joint operator is entitled to recognise a profit from the supply of services to itself; 
C)  a joint operator cannot earn a profit on supplying services to itself; 
D)  a joint operator is not able to recognise the service revenue or service cost for the services supplied to the joint operation. 
A)  a joint operator can recognise 100% of the earned through the supply of services to the joint operation; 
B)  a joint operator is entitled to recognise a profit from the supply of services to itself; 
C)  a joint operator cannot earn a profit on supplying services to itself; 
D)  a joint operator is not able to recognise the service revenue or service cost for the services supplied to the joint operation.

Question 5

Wiseye Limited and Goodbody Limited agreed to form a joint operation to offer health services. To start the operation the joint operators agreed to contribute cash of €30 000 each. The joint operation will record which of the following entries to recognise this event?

Accepted Answer

A)  DR$\quad$ Joint operator contributions $\quad$$€ 600,000$
$\mathrm { CR }$$\quad$Cash$\quad$$\quad$$\quad$$€ 600,000$ 
B)  $\begin{array}{ll}
\text { DR } & \text { Cash }&€ 600,000 \
\text { CR } & \text { Joint operator contributions }&€ 600,000
\end{array}$ 
C)  $\begin{array} { l c c c } 
\text { DR } & \text { Venturer's equity - Wiseye Limited } & € 300000 & \
\text { DR } & \text { Venturer's equity - Goodbody Limited } & € 300000 & \
\text { CR } & \text { Cash } & & € 600000
\end{array}$ 
D)  $\begin{array} { l l l } 
\text { DR } & \text { Cash } & € 600000 \
\text { CR } & \text { Joint operation contribution - Wiseye } & € 300000 \
\text { CR } & \text { Joint operation contribution - Goodbody } & € 300000
\end{array}$ 
A)  DR$\quad$ Joint operator contributions $\quad$$€ 600,000$
$\mathrm { CR }$$\quad$Cash$\quad$$\quad$$\quad$$€ 600,000$ 
B)  $\begin{array}{ll}
\text { DR } & \text { Cash }&€ 600,000 \
\text { CR } & \text { Joint operator contributions }&€ 600,000
\end{array}$ 
C)  $\begin{array} { l c c c } 
\text { DR } & \text { Venturer's equity - Wiseye Limited } & € 300000 & \
\text { DR } & \text { Venturer's equity - Goodbody Limited } & € 300000 & \
\text { CR } & \text { Cash } & & € 600000
\end{array}$ 
D)  $\begin{array} { l l l } 
\text { DR } & \text { Cash } & € 600000 \
\text { CR } & \text { Joint operation contribution - Wiseye } & € 300000 \
\text { CR } & \text { Joint operation contribution - Goodbody } & € 300000
\end{array}$

IFRS 11, provides that joint control exists where:

Three joint operators agree to an arrangement in which they have an equal share in an agricultural joint operation. The work undertaken in setting up the joint operation cost £300 000 and each operator contributed in cash. Each operator will need to recognise the following accounting entry:

In relation to the supply of a service to a joint operation by one of the joint operators, which of the following statements is correct?

Wiseye Limited and Goodbody Limited agreed to form a joint operation to offer health services. To start the operation the joint operators agreed to contribute cash of €30 000 each. The joint operation will record which of the following entries to recognise this event?

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters

Exam 22: Joint Arrangements

IFRS 11, provides that joint control exists where:

Three joint operators agree to an arrangement in which they have an equal share in an agricultural joint operation. The work undertaken in setting up the joint operation cost £300 000 and each operator contributed in cash. Each operator will need to recognise the following accounting entry:

In relation to the supply of a service to a joint operation by one of the joint operators, which of the following statements is correct?

Wiseye Limited and Goodbody Limited agreed to form a joint operation to offer health services. To start the operation the joint operators agreed to contribute cash of €30 000 each. The joint operation will record which of the following entries to recognise this event?

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters