Financial Reporting

Theory and Practice

Advanced Accounting
Part 2

TEACHERS MANUAL
2015
BASED ON
PHILIPPINE FINANCIAL REPORTING STANDARDS (PFRSs)

Dear fellow teacher,

This Teachers Manual should be used solely by the teacher and for
classroom purposes only. This manual should NOT be reproduced
either manually (e.g., printing or photocopy) or electronically (e.g.,
copying or uploading to the net) without my written consent (or the
publishers written authorization).
If you have comments, queries or suggestions, please do not hesitate
to
contact
me
(mobile
no.
09178706962;
email
ad:
zeus.millan@yahoo.com).
Thanks and God bless.
Sincerely,
Zeus Vernon B. Millan

The secret of teaching is to appear

to have known all your life what

you learned this afternoon.
- ANONYMOUS

TABLE OF CONTENTS
CHAPTER13BUSINESSCOMBINATIONS(PART1).............................................1
MultipleChoiceTheory.......................................................................1
MultipleChoiceComputational.........................................................1
Exercises.................................................................................................7
CHAPTER14BUSINESSCOMBINATIONS(PART2)...........................................15
MultipleChoiceTheory.....................................................................15
MultipleChoiceComputational.......................................................15
Exercises...............................................................................................22
CHAPTER15BUSINESSCOMBINATIONS(PART3)...........................................31
MultipleChoiceTheory.....................................................................31
MultipleChoiceComputational.......................................................31
Exercises...............................................................................................35
CHAPTER16CONSOLIDATEDFINANCIALSTATEMENTS(PART1)........................39
MultipleChoiceTheory.....................................................................39
MultipleChoiceComputational.......................................................39
Exercises...............................................................................................45
CHAPTER17CONSOLIDATEDFINANCIALSTATEMENTS(PART2)........................56
MultipleChoiceComputational.......................................................56
CHAPTER18CONSOLIDATEDFINANCIALSTATEMENTS(PART3)........................62
MultipleChoiceTheory.....................................................................62
MultipleChoiceComputational.......................................................62
CHAPTER19CONSOLIDATEDFINANCIALSTATEMENTS(PART4)........................88
MultipleChoiceTheory.....................................................................88
MultipleChoiceComputational.......................................................88
CHAPTER20SEPARATEFINANCIALSTATEMENTS...........................................105
MultipleChoiceTheory...................................................................105
MultipleChoiceComputational.....................................................105
Exercises.............................................................................................106
CHAPTER21THEEFFECTSOFCHANGESINFOREIGNEXCHANGERATES.............107
MultipleChoiceTheory...................................................................107
MultipleChoiceComputational.....................................................107
Exercises.............................................................................................127
CHAPTER22ACCOUNTINGFORDERIVATIVESANDHEDGINGTRANSACTIONS(PART
1)............................................................................................................159
MultipleChoiceTheory...................................................................159
Exercises.............................................................................................159
CHAPTER23ACCOUNTINGFORDERIVATIVESANDHEDGINGTRANSACTIONS(PART
2)............................................................................................................160
MultipleChoiceTheory...................................................................160
MultipleChoiceComputational.....................................................160

Exercises.............................................................................................171
CHAPTER24ACCOUNTINGFORDERIVATIVESANDHEDGINGTRANSACTIONS(PART
3)............................................................................................................183
MultipleChoiceComputational.....................................................183
Exercises.............................................................................................197
CHAPTER25ACCOUNTINGFORDERIVATIVESANDHEDGINGTRANSACTIONS(PART
4)............................................................................................................219
MultipleChoiceTheory...................................................................219
MultipleChoiceComputational.....................................................219
CHAPTER26CORPORATELIQUIDATIONANDREORGANIZATION.......................228
MultipleChoiceTheory...................................................................228
MultipleChoiceComputational.....................................................228
Exercises.............................................................................................236