Question 1

IFRS 11 Joint Arrangements, 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

Company A Limited and Company B Limited formed a joint operation and share in the output of the joint operation 60:40. The joint operation paid a management fee of $20 000 to Company A Limited during the current period. The cost to Company A Limited of supplying the management service was $14 000. Company A Limited records the management fee revenue as follows:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 3

The following information relates to questions 19 and 20
A Ltd and B Ltd have established the AB Joint Operation. A Ltd has a 60% interest in the joint operation and B Ltd has a 40% interest.
A Ltd contributed an asset with a carrying amount of $90,000 and a fair value of $120,000 and B Ltd agreed to provide technical services to the joint operation over the first two years of operations. The fair value of the technical services was agreed to be $80,000 and the cost to provide the services was estimated at $65,000 at the inception of the joint operation.
-As part of its initial contribution entry B Ltd will record a:

Accepted Answer

A)  Debit against the Services Receivable in JO account of $32,000; 
B)  Debit against the Plant in JO account of $36,000; 
C)  Credit against the Obligation to JO of $39,000; 
D)  Credit against the Gain on Provision of Services of $6,000. 
A)  Debit against the Services Receivable in JO account of $32,000; 
B)  Debit against the Plant in JO account of $36,000; 
C)  Credit against the Obligation to JO of $39,000; 
D)  Credit against the Gain on Provision of Services of $6,000.

Question 4

A joint operation holds Equipment with a carrying amount of $1 200 000. The two joint operators participating in this arrangement share control equally. They also depreciate Equipment using the straight-line method. The Equipment has a useful life of 5 years. At reporting date each joint operator must recognise the following entry, in relation to depreciation, in its records:

Accepted Answer

A) 	DR	Depreciation			$240 000; 
B) 	DR	Depreciation			$120 000; 
C) 	DR	Investment in joint operation	$240 000; 
D) 	DR	Assets in joint operation	$120 000. 
A) 	DR	Depreciation			$240 000; 
B) 	DR	Depreciation			$120 000; 
C) 	DR	Investment in joint operation	$240 000; 
D) 	DR	Assets in joint operation	$120 000.

Question 5

Which of the following statements is not true in relation to joint control?

Accepted Answer

A)  each party must have an equal interest for joint control to exist 
B)  joint control exists only where there is contractually agreed sharing of control 
C)  entities over which a party has joint control are accounted for in accordance with IFRS 11 Joint Arrangements 
D)  joint control requires the unanimous consent of the parties sharing control 
A)  each party must have an equal interest for joint control to exist 
B)  joint control exists only where there is contractually agreed sharing of control 
C)  entities over which a party has joint control are accounted for in accordance with IFRS 11 Joint Arrangements 
D)  joint control requires the unanimous consent of the parties sharing control

Question 6

Company A Limited and Company B Limited formed a joint operation and share equally in the output of the joint operation. The joint operation paid a management fee of $20 000 to Company A Limited during the current period. The cost to Company A Limited of supplying the management service was $14 000. Company A Limited records the management fee revenue as follows:

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

IFRS 11 Joint Arrangements, provides that joint control exists where:

Which of the following statements is not true in relation to joint control?

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Filters

Exam 30: Joint Arrangements

IFRS 11 Joint Arrangements, provides that joint control exists where:

Which of the following statements is not true in relation to joint control?

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Filters