1.

(Conceptual Framework) Which of the following is incorrect with regards the Role of Financial Reporting
Standards Council in the Philippines.
I – FRSC was created by PRC upon recommendation of the BOA to assist the PRC in carrying out its powers and
functions to promulgate accounting standards in the Philippines.
II – The FRSC consists of a Chairman and members who are appointed by the PICPA.
III – The FRSC has a full discretion in developing and pursuing the technical agenda for setting accounting
standards in the Philippines.
IV – The FRSC formed the PIC to assist the FRSC in establishing and improving financial reporting standards by
issuing implementation guidance on PFRS.
a. I only c. I, II and III only e. None of the above
b. I and II only d. I, II, III and IV
DISCUSSION NOTE: I IS INCORRECT – TO ASSIST THE BOA NOT THE PRC; II IS INCORRECT NOT APPOINTED BY PICPA BUT BOA

2. (Conceptual Framework) It refers to the use of the same method for the same item, either from period to period
within an entity or in a single period across entities.
a. Consistency c. Standard Based
b. Comparability d. Understandability
DISCUSSION NOTE: IT IS THE DEFINITION OF CONSISTENCY. COMPARABILITY IS BRINGING TOGETHER FOR THE PURPOSE OF NOTING
POINTS OF LIKENESS AND DIFFERENCE. COMPARABILITY IS THE GOAL WHILE CONSISTENCY HELPS TO ACHIEVE THE GOAL

3. (PAS 1) When an entity applies accounting policy retrospectively or makes a retrospective restatement of items
in its financial statements or when it reclassifies items in the financial statements, it shall present a comparative
information as a minimum
a. Two statements of financial position, two of each of the other statements and related notes.
b. Three statements of financial position, two of each of the other statements and related notes.
c. Three statements of financial position, three of each of the other statements and related notes.
d. Two statements of financial position, three of each of the other statements and related notes.
DISCUSSION NOTE: IN DISCLOSING COMPARATIVE INFORMATION SHALL PRESENT, AS A MINIMUM, TWO STATEMENTS OF FINANCIAL
POSITION, TWO OF EACH OTHER STATEMENTS, AND RELATED NOTES. HOWEVER IF THE ENTITY APPLIES AN ACCOUNTING POLICY
RETROSPECTIVELY OR MAKES RETROSPECTIVE RESTATEMENT IT SHALL PRESENT AS A MINIMUM, THREE STATEMTNS OF FINANICAL
POSITION, TWO OF EACH OF THE OTHER STATEMENTS AND RELATED NOTES.

4. (PAS 1) Which of the following information should not be displayed prominently by the entity in preparing the
financial statements and the notes?
a. Whether the financial statements are of individual entity or a group of entities
b. The presentation currency
c. The level of rounding used in presenting amounts in the financial statements
d. None of the above
DISCUSSION NOTE: IT SHALL DISPLAY PROMINENTLY (A) THE NAME OF THE REPORTING ENTITY (B) WHETHER THE FS OF AN
INDIVIDUAL OR A GROUP (C) DATE OF THE END OF THE REPORTING PERIOD (D) PRESENTATION OF CURRENCY (E) THE LEVEL OR
ROUNDING OFF.

5. (ACCOUNTING PROCESS) Arrange the following steps in their correct order

I – Financial statements are prepared
II – Adjusting entries are recorded
III – Nominal Accounts are closed
a. I, II and III c. III, II and I
b. II, I and III d. II, III and I

6. (ACCOUNTING PROCESS) Accruals are

a. Adjusting entries where revenues or expenses are recognized in the absence of cash flow evidence
b. Adjusting entries where cash flow and revenue or expense recognition are simultaneous.
c. Adjusting entries where revenue or expense recognition precedes cash flow
d. Adjusting entries where cash flow precedes revenue or expense recognition
 7. (CASH) Which of the following is incorrect in the preparation of bank reconciliation?
a. Proceeds of bank loan not recorded in ledger will be deducted in the bank to book reconciliation.
b. A creditor check that had been entered in the book as P20,000 and was erroneously deducted by bank at
P200,000 will be deducted in the book to bank reconciliation.
c. A customer check was returned by bank marked DAIF will be added in the bank to book reconciliation.
d. Outstanding checks will be deducted in the book to bank reconciliation.

8. (CASH) When an imprest petty cash fund is used, which of the following statement is true?
a. Entries that include a credit to the cash accounts shall be recorded at the time the payments from the
petty cash fund are made.
b. At any time, the sum of the cash in the petty cash fund and the total of petty cash vouchers shall equal
the amount for which the imprest petty cash fund was established.
c. With the establishment of an imprest petty cash fund, one person is given the authority and
responsibility for issuing check to cover minor disbursements.
d. The petty cashier’s summary of petty cash payments serves as a journal entry that is posted to the
appropriate general ledger account.

9. (AR) If the direct origination costs exceed the origination fees received, the difference is
a. Unearned interest income and the amortization will increase interest income
b. Charged to Direct origination costs and the amortization will increase interest income
c. Unearned interest income and the amortization will decrease interest income
d. Charged to Direct origination costs and the amortization will decrease interest income

10. (AR) Factoring is a sale of accounts receivable on a

a. With recourse, nonnotification basis
b. With recourse, notification basis
c. Without recourse, nonnotification basis
d. Without recourse, notification basis

11. (INVENTORY)1st statement: Inventories used in one business segment that may have a use to the different entity
from the same type of inventories in another business segment can use different cost formulas.
2nd statement: Inventories used in one business segment with a different nature used in another business
segment can use different cost formulas if justified.
3rd statement: Difference in geographical location of inventories (or in the respective tax rules), is a sufficient
justification to use of different cost formulas
a. True, True, True c. True, False, False e. None of the above
b. True, True, False d. False, False, False
DISCUSSION Note: Par 25 and 26. Same cost formulas (FIFO and WA) for all inventories having a similar nature and use to the entity.

12. (INVENTORY)Which of the following should be disclosed in relation to inventories:

I – The accounting policies adopted in measuring inventories, including the cost formulas used.
II – The carrying amount of inventories carried at fair value less costs to sell.
III – The amount of inventories recognized as expense during the period.
IV – The gain or loss arising from changes in fair value less costs to sell
a. Only I c. I, II and III e. None of the above
b. I and II d. I, II, III and IV
DISCUSSION NOTE: IV IS FOR BIOLOGICAL ASSET NOT FOR INVENTORIES

13. (INTANGIBLE ASSET) An entity reported goodwill in last year’s statement of financial position. How should the
entity account for the reported goodwill in the current year?
a. Determine whether the fair value of the reporting unit is greater than the carrying amount and report a
gain on goodwill in the income statement
b. Determined whether the fair value of the reporting unit is greater than the carrying amount and report
the recovery of any previous impairment in the income statement.
c. Determine the current year’s amortizable amount and report the amortization expense
 d. Determine whether fair value of the reporting unit is less than the carrying amount and report an
impairment loss on goodwill in the income statement.

14. (INTANGIBLE ASSET) Which of the following is an intangible asset?

I – An entity develops a formula that uses to manufacture a unique glue. The glue is the leading adhesive product
in the market because of its distinctive mix of chemicals. The special formula is known only the entity’s two
owner-managers and hence no competitors have been able to discover and replicate the formula. The formula is
not protected by patent, or by other means. Many competitors have approached the entity to try to purchase
the formula.
II – An entity developed a successful brand that allows the entity to charge a premium for its products. The entity
continues to spend a large amount on maintaining the brand and on developing the brand further (sponsoring
local sports events, sponsoring cultural events and advertising the brand).
a. I only c. I and II
b. II only d. Neither I nor II
DISCUSSION NOTE: INTERNALLY DEVELOPED INTANGIBLE ASSET SHOULD NOT BE CAPITALIZED IF IT WILL VIOLATE IDENTIFIABILITY. IF
AN INTANGIBLE ASSET CANNOT SEPARATE FROM THE ENTITY ITSELF, IT SHOULD NOT BE CONSIDERED AS INTANGIBLE ASSET

15. (FINANCIAL ASSET) What is the principle of recognition of a financial asset or a financial liability of PAS 39?
a. A financial asset is recognized when, and only when, the entity becomes a party to the contractual
provisions of the instrument.
b. A financial asset is recognized when, and only when, the entity obtains the risks and rewards of
ownership of the financial asset and has the ability to dispose the financial asset
c. A financial asset is recognized when, and only when, the entity obtains control of the instrument and has
the ability to dispose of the asset independent of the actions of others.
d. A financial asset is recognized when, and only when, it is probable that future economic benefits will
flow to the entity and the cost of value of the instrument can be measured reliably.
DISCUSSION NOTE: BASIC CHARACTERISTIC OF FINANCIAL INSTRUMENT IS THERE MUST BE A CONTRACT.

16. (FINANCIAL ASSET) What is the best evidence of the fair value of a financial instrument?
a. The present value of the contractual cash flows less impairment
b. Its quoted price, if an active market exists for the financial instrument
c. Its estimated value determined using discounted cash flow techniques, option pricing models or other
valuation techniques.
d. Its costs, including transaction costs directly attributable to the purchase, origination or issuance of
financial instrument.
DISCUSSION NOTE: LEVEL 1 FAIR VALUE – QUOTED PRICES IN AN ACTIVE MARKET; LEVEL 2 INPUTS TAHT ARE OBSERVABLE EITHER
DIRECTLY OR INDIRECTLY; LEVEL 3 – UNOBSERVABLE INPUTS FOR THE ASSETS.

17. (DERIVATIVES) All of the following are characteristics of a derivative, except

a. It is acquired for the purpose of generating a profit from short term fluctuations
b. Its value changes in response to the change in a specified underlying
c. It requires no initial investment or an initial small net investment
d. It is settled at a future date

18. (DERIVATIVES) It is a purchase or sale of a financial asset user a contract whose terms require delivery of the
asset within the time frame established by regulation or convention in the market palace
a. Regular way contract
b. Forward contract
c. Firm commitment
d. Forecast transaction

19. (BIOLOGICAL) In the measurement of Inventory and Biological Assets, the transport cost to customers is ____ in
the cost of disposal
Inventory Biological Assets
a. Included Included
b. Included Excluded
c. Excluded Included
 d. Excluded Excluded
e. None of the above
DISCUSSION Note: under PAS41, cost of disposal is excludes TRANSPORT COST, Finance cost and income tax, while in inventory
Transport cost is part of the estimated cost of disposal in the computation of NRV.

20. (BIOLOGICAL) Guimaras is known for its sweetest mangoes not only in the Philippines but in the world. Gandalf
Corporation is on mango plantation and owned a vast land with over 3,000 mango trees and exported fresh ripe
mangoes and mango pulp to United States and other Middle East Countries with a limited quantity being
shipped to European Market. Gandalf Corporation has encountered problems years back with regards the birds
eating those ripe mangoes on trees. Thus, they decided two years ago to change their process to harvest the
unripe mangoes and are kept for ten days until it will mature. Upon maturity, the mangoes are then segregated
for cleaning, and packing for sale here and on abroad. You were hired as an accountant of Gandalf Corporation
and reviewed the measurement of mango trees and the harvested unripe mangoes. The measurement will be:
Mango Trees Harvested Unripe Mangoes
a. Fair Value – Cost of Disposal Fair value – Cost of Disposal at the time of Harvest
b. Fair Value – Cost of Disposal Lower of Cost and Net Realizable Value
c. At Cost Fair Value – Cost of Diposal at the time of Harvest
d. At Cost Lower of Cost and Net Realizable Value
e. None of the above
DISCUSSION Note: Mango Trees are considered as Bearer plants used in the production of agricultural produce (mangoes), and
expected to bear produce for more than one period and are treated already under PAS 16 – PPE and thus measured at COST. The
harvested unripe mangoes are not yet for sale after ten days, thus they are still agricultural produce and subject to FAIR VALUE –
COST of DISPOSAL at the Time of Harvest.

21. (INVESTMENTS) Which of the following is correct with regards the classification of debt and equity securities,
respectively?
FV – PL FV TOCI Amortized Cost
a. Debt Securities YES YES YES
Equity Securities YES YES YES
b. Debt Securities NO NO YES
Equity Securities YES YES NO
c. Debt Securities YES NO NO
Equity Securities YES NO NO
d. Debt Securities NO YES YES
Equity Securities YES YES NO
e. None of the above
Note: Equity Securities can only be FVPL and TOCI, Debt Securities can be PL, TOCI, Amortized cost

22. (INVESTMENTS) Which of the following is correct in relation to the treatment of transaction cost and the realized
gain or loss from the change of market value of investments?
FV – PL FV TOCI Amortized Cost
a. Transaction Cost Expense Capitalized Capitalized
Realized Gain or Loss Income Statement Retained Earnings None
b. Transaction Cost Expense Expense Capitalized
Realized Gain or Loss Income Statement TOCI Income Statement
c. Transaction Cost Capitalized Expense Expense
Realized Gain or Loss Retained Earnings Income Statement Income Statement
d. Transaction Cost Capitalized Capitalized Expense
Realized Gain or Loss Income Statement TOCI None
e. None of the above
BONUS: ERROR IN THE QUESTION. FOR FV-PL THE DIFFERENCE IN FAIR VALUE IS UNREALIZED GAIN OR LOSS, THE REALIZED PORTION
IS THE SELLING OF THE INVESTMENT. FOR FVTOCI; TWO REALIZED GAIN/LOSS (1) FROM THE DISPOSAL OF THE ASSET (2) THE
CUMULATIVE GAIN OR LOSS PREVIOUSLY RECOGNIZED IN OCI – BOTH WILL BE TRANSFERRED TO RETAINED EARNINGS.

23. (PPE) Aragorn Corporation is in retail business of printing press machines. With the coming 2016 elections, the
company purchased 20 machines for sale and additional 5 printing press machines for company use. Which of
the following is true with regards the purchase discounts given by the supplier?
Gross Method Net Method
a. Paid Within the Discount All the discounts will be credited to No Purchase discount will be
period Purchase discount credited
 b. Paid Within the Discount All the discounts will be credited to No Purchase discount will be
Period an Asset Account credited
c. Paid Beyond the discount No purchase discount lost will be All the discounts will be debited to
Period debited Purchase discount lost
d. Paid Beyond the discount The discount for the 5 machines All the discounts will be debited to
Period will be debited to Purchase the purchase discount lost
discount lost
DISCUSSION Note: The twenty machines are considered as Inventory and remaining items as PPE. (a) is wrong as NO PURCHASE
DISCOUNT WILL BE credited for PPE under Gross Method. (b)is wrong as discounts for machines considered as part of Inventory is
credited to Purchase discount under Gross Method. (c) is wrong, a purchase discount lost will be recognized for PPE whether gross or
net method.

24. (PPE) Frodo Baggins Company purchased a tract of land in Hobbiton as an investment property. Frodo razed
immediately an old building on the property which was determined to be still useful to prepare the land for its
intended use. Which of the following is true?
a. The total purchase price will be charged to the land, since the old building will be demolished
eventhough it is still useful and the cost of razing and net of scrap value will be charged to the land also.
b. The total purchase price will be allocated between the old building and the land, the cost of the old
building including the net demolition cost will be charged to land.
c. The total purchase price will be allocated between the old building and the land, the cost of the old
building including the net demolition cost will be charged to the new building.
d. The total purchase price will be charged to the land, since the old building will be demolished
eventhough it is still useful and the cost of razing and net of scrap value will be charged to the new
building.
e. None of the above.
DISCUSSON Note: Since the tract of land is for investment property there is no intention to build a new building. The allocated
purchase price will be allocated between land and old building. Upon demolition the cost of the old building will be charged as LOSS
and the cost of net demolition will be charged to Land.

25. (PPE) SM City Cebu, first opened in November 1993 and seen as catering to the low and middle class of
shoppers, in contrast to its upmarket competitor, AYALA Center Cebu. In March 2006, SM started construction on
its expanded building. The addition which was developed at a cost of P1.3 billion was built on the parking lot to
the north of the existing building. The alterations which increase the physical size of the asset resulted to the
total gross floor area of SM City Cebu by 1,152,270 sq ft. The Northwing opened in 2007 that features two floors
of retail stores, restaurants and cafes. It also added three levels of covered parking and a one level of roof deck
parking. Which of the following is correct with regards the depreciation method of the Northwing?
a. The cost of the addition should be depreciated over its useful life.
b. The cost of the addition should be depreciated over the remaining life of the asset of which it is part.
c. The cost of the addition should be depreciated over its useful life or remaining useful life of the asset of
which it is part, whichever is shorter.
d. The cost of the addition should be added to the cost of the old building and should be treated as one.
The management should review the life of the asset and depreciated over its new life.
e. None of the above
DISCUSSION Note: Additions are two types, an entirely new unit and an expansion. SM Northwing is an expansion of an old building.
The cost of expansion should be depreciated over its life or the remaining life of the old asset, whichever is shorter.

26. (CURRENT LIAB) Which of the following is a current liability?

a. Bond for which there is an adequate sinking fund due in two years
b. Bond due in three years
c. Bond for which there is an appropriation of retained earnings due in eleven months
d. Bond due in eight months and refinanced at the end of reporting period.

27. (CURRENT LIAB) Contingent asset need not be disclosed when considered
a. Virtually certain
b. Probable
c. Likely
d. Possible
 28. (NONCURRENT LIAB) Debenture bonds are
a. Are unregistered bonds in the sense that the name of the bondholder is not recorded on the entity
books.
b. These are bonds which may be called in for redemption prior to their maturity
c. These are bonds that are unsecured and rank as general creditors in the preference credits
d. These are high risk, high yield bonds that are heavily indebted or otherwise in weak financial condition

29. (NONCURRENT LIAB) I - The net proceeds received from bond issuance is equal to discount the bonds at the
market rate of interest and deduct bond issuance cost. True
II - When interest expense for the current year is more than interest paid, the bonds were issued at a premium.
False
III - Convertible preference share are compound instruments with both a liability and an equity component.False

30. (LEASE) If the sale and leaseback transaction results in a finance lease, the gain or loss will be treated as

Gain Loss
A. Recognized immediately Recognized Immediately
B. Amortized over the life of the asset Recognized immediately
C. Recognized immediately Amortized Over the life of the asset
D. Amortized over the life of the asset Amortized Over the life of the asset
E. None of the above
DISCUSSION Note: None of the above. Gain will be amortized over the lease term, loss recognized immediately

31. (LEASE) Which of the following is correct in relation to sale and leaseback transaction under operating lease
I – If the sale and leaseback transaction is clearly established at fair value, any gain or loss and leaseback shall be
recognized immediately.
II – If the sale price is below fair value and the loss is compensated by future lease rental at below market value,
the loss should be recognized immediately.
III – If the sale price is above the fair value, the excess over fair value is recognized immediately.
IV – If the fair value at the time of sale and leaseback is less than carrying amount of the asset, the difference is
recognize as a loss and be amortized over its lease term.
a. I only c. I, II and III e. None of the above
b. I and II d. I, II, III and IV
DISCUSSION NOTE: II IS INCORRECT IT SHOULD BE DEFERRED AND AMORTIZED OVER LEASE PAYMENTS. III IS INCORRECT IT SHOULD
BE AMORTIZE. IV IS INCORRECT THE LOSS SHOULD BE RECOGNIZE IMMEDIATELY

32. HELD FOR SALE) The entity shall recognize any subsequent increase in fair value less cost of disposal of a
noncurrent asset held for sale as
a. Gain to be included in profit or loss but not in excess of the cumulative impairment loss previously
recognized
b. Gain entirely to be included in profit or loss
c. Deferred gain as component of liability
d. Deferred gain as component of equity

33. HELD FOR SALE) A single amount must be disclosed within that income statement for noncurrent asset held for
sale
a. The post tax profit or loss of discontinued operation and the post tax gain or loss on disposal of
discontinued operation assets
b. The pretax profit or loss on discontinued operation and the pretax gain or loss on disposal of
discontinued operation assets
c. The pretax profit or loss on discontinued operation and the post tax gain or loss on disposal of
discontinued operation assets
d. The post tax profit or loss on discontinued operation and the pretax gain or loss on disposal of
discontinued operation assets

34. (Conceptual Framework) The Framework is intended to establish

 a. The meaning of “present fairly in accordance with generally accepted accounting principle”.
b. The hierarchy of sources of generally accepted principles
c. Generally accepted accounting principles in financial reporting by business enterprise
d. The objectives and concepts for use in developing standards of financial accounting and reporting.

35. (Conceptual Framework) According to the conceptual framework, the revaluation or restatement of assets and
liabilities give rise to increases or decreases in equity and they should be
a. Included in the income statement and in equity account as capital maintenance adjustments
b. Included in the income statement but not in equity account as capital maintenance adjustments
c. Not included in the income statement under certain concepts of capital maintenance but included in
equity account as capital maintenance adjustment
d. Not included in the income statement and in equity account under certain concepts of capital
maintenance.
DISCUSSION Note: All price changes affecting the assets and liabilities of the entity are viewed as change in the measurement of the
physical productive capacity of the entity, thus, they are treated as capital maintenance adjustments as part of equity and not as
profit. (par 109)

36. (Conceptual Framework) Under the concept of financial capital maintenance in terms of constant purchasing the
power of units, the increase in the prices of assets held over the period, conventionally referred to as holding
gains are
a. Regarded as profit
b. Regarded as capital maintenance adjustment thus part of equity
c. Treated as capital maintenance adjustment, for those increase in the price of asset that exceeds in the
general level of prices and any excess will be treated as profit.
d. Treated as profit, for those increase in the price of assets that exceeds in the general level of prices and
any excess will be treated as capital maintenance adjustment thus part of equity

37. (PAS 1) When an entity has departed from a requirement of a PFRS in a prior period, and the departure affects
the amounts recognized in the financial statements for the current period, what is/are required disclosure/s?
I – That the management has concluded that the financial statements presents fairly the entity’s financial
position, financial performance and cash flows.
II – That it has complied with applicable PFRS’s, except that it has departed from a particular requirement to
achieve a fair presentation.
III – The title of the PFRS from which the entity has departed, the nature of the departure, including the
treatment that the PFRS would require, the reason why that treatment would be misleading in the circumstances
that it would conflict with the objective of financial statement set out in the Framework, and the treatment
adopted.
IV – For each period presented, the financial effect of the departure on each item in the financial statements that
would have been reported in complying with the requirements.
a. I, II, III and IV c. III and IV only
b. I and II only d. II, III and IV only
DISCUSSION Note: On the year of Departure, I, III,III AND IV ARE THE NEEDED disclosures but IF THE DEPARTURE IS prior period IT
will DISCLOSE ONLY IN the current FS the III and IV

38. (PAS 1) Which of the following is/are considered as current liability

I - It holds the liability primarily for the purpose of trading
II - It does not have an unconditional right to defer settlement of the liability for at least twelve months after the
reporting period.
III - Other operating costs that are part of working capital and are due to be settled more than twelve months
after the reporting period.
IV - Liabilities due within 12 months after the reporting period but there is an agreement to refinance, or to
reschedule the payments, on a long term basis is completed after the reporting period and before the financial
statements are authorized for issue
a. Only I c. I, II and III e. None of the above
b. I and II d. I, II, III and IV
DISCUSSION Note: PAS 1 par 70. All are current
39. (PAS 1) Which of the following components of Other Comprehensive Income that will not be reclassified
subsequently to profit or loss?
a. Unrealized gain or loss on derivative contracts designated as cash flow hedge
b. Gain or loss from translating financial statements of a foreign operation
c. Unrealized gain or loss on debt investment measured at fair value through other comprehensive income
d. Unrealized gain or loss on equity investment measured at fair value through other comprehensive
income.

40. (ACCOUNTING PROCESS) The manufacturing summary account

a. Summarizes all revenues and expenses
b. Is a substitute for the income summary
c. Summarizes all accounts that enter into the computation of cost of goods manufactured
d. Summarizes all accounts that enter in the computation of cost of goods sold.

41. (ACCOUNTING PROCESS) In preparing the 10-column worksheet

a. The ending inventory is extended as a credit in the income statement columns and as a debit in the
statement of financial position columns
b. The ending inventory is extended as a debit in the income statement columns and as a credit in the
statement of financial position columns.
c. The beginning inventory is extended as a credit in the statement of financial position columns.
d. The beginning inventory is extended as a credit in the income statement columns.

42. (ACCOUNTING PROCESS) Premium on bonds payable is an example of

a. Real and contra account
b. Nominal and contra account
c. Real and adjunct account
d. Nominal and adjunct account

43. (CASH) Deposits in foreign countries which are subject to a foreign exchange restrictions should be
a. Valued at historical exchange rates and presented as current asset
b. Valued at current exchange rates and shown as current asset
c. Valued at historical exchange rates and presented as noncurrent asset
d. Valued at current exchange rates and shown as noncurrent asset

44. (AR) Which of the following is incorrect in assessing whether the accounts receivable should be considered
impaired?
a. All accounts receivable whether significant or insignificant should be considered for impairment
separately and if impaired, the impairment loss is recognized.
b. Individually significant accounts receivable should be considered for impairment separately and if
impaired, the impairment loss is recognized.
c. Accounts receivable not individually significant should be collectively assessed for impairment.
d. Accounts receivable not considered impaired should be included with other accounts receivable with
similar credit risk characteristics and collectively assessed for impairment.

45. (AR) When a specific customer’s account is written off by a company using the allowance method, the effect on
net income and the net realizable value of the accounts receivable, respectively, is
a. Decrease, none c. Decrease, Decrease e. None of the above
b. Increase, Increase d. None, None

46. (AR) A P4,800,000, 6 month, 12% note dated March 1 is received from a customer by an entity and discounted
by USC Bank on April 1 at 15%. The discounting is treated as with recourse and is accounted as secured
borrowing. When the note is dishonoured by maker and the entity pays the USC Bank, the journal entry will
probably include a
a. Debit to Notes Receivable Discounted at maturity value plus protest fee and other bank charges
b. Debit to Liability for note receivable discounted at face value
 c. Debit to Notes Receivable Discounted at face value
d. Debit to Liability for note receivable discounted at maturity value plus protest fee and other bank
charges
DISCUSSION Note: Secured borrowing: DR: AR: CR: Cash –maturity value plus any charges (paid to the bank); close the liability at
principal (Face value)

47. (INVENTORY)Which of the following should be excluded from the cost of inventorie?
a. Normal amounts of wasted materials, labor and other production costs
b. Storage costs of part finished goods
c. Administrative expense that contribute to bringing the inventories to their present condition and
location.
d. Recoverable purchase tax

48. (INVENTORY)The use of the gross profit method assumes

a. The relationship between selling price and costs of goods sold is similar to prior years
b. Inventory values have not increased from previous years
c. Sales and costs of goods sold have not changed from previous years
d. The amount of gross profit is the same as in prior years.

49. (INVENTORY)When a portion of inventories has been pledged to secure the payment of indebtedness
a. The fact of a portion having been pledged should be disclosed in the notes to financial statements
b. The value of the portion pledged should be deducted from the value of the inventories shown in the
current assets section of the balance sheet
c. The value of the portion pledged should be transferred from current assets to noncurrent assets
d. The value of the inventories shown in the current assets section of the balance sheet remains the same
but the fact of having been pledged a portion of the inventories should be disclosed in the financial
statements or notes.

50. (INTANGIBLE ASSET) When should an entity recognize goodwill?

a. The fair value of assets exceeds the carrying amount
b. The entity expects a future benefit from the creation of goodwill
c. Goodwill has been created in the purchase of a business
d. Costs have been incurred in the development of goodwill

51. (INTANGIBLE ASSET) Which of the following is incorrect with regards the amortization of patent?
a. If a related patent is acquired in order to extend the life of the old patent, the cost of the related patent
is amortized over the remainder of its life and the cost of the new patent will be amortized over its life.
b. If a competitive patent is acquired to protect an original patent, the cost of the competitive patent shall
be amortized over the remaining life of the old patent.
c. The original cost shall be amortized over the legal life or useful life, whichever is shorter
d. None of the above

52. (INTANGIBLE ASSET) Which of the following is a research activity?

a. Adaptation of an existing capability to a particular requirement or customer need.
b. Activity, including design and construction engineering related to construction, relocation,
rearrangement or start-up of facilities and equipment
c. Design, construction and testing of a chosen alternative for new or improved product or process
d. Conceptual formulation and design of possible product or process alternative.

53. (FINANCIAL ASSET) Which of the following assets is not a financial asset?
a. Prepaid Expenses
b. A contract that may or will be settled in the entity’s own equity instrument and is not classified as an
equity instrument of the entity
c. Cash
d. An equity instrument of another entity
 54. (FINANCIAL ASSET) The scope of PAS 39 includes all of the following except
a. Financial instruments that meet the definition of a financial asset
b. Financial instruments that meet the definition of a financial liability
c. Financial instruments issued by the entity that meet the definition of an equity instrument
d. Contracts to buy or sell nonfinancial items that can be settled net

55. (DERIVATIVES) The call option is in the money when

a. The market price of the underlying is greater than the strike price
b. The market price of the underlying is lesser than the strike price
c. The market price of the underlying is the same as the strike price
d. The call option is exercised immediately
DISCUSSION NOTE: A IS ON THE MONEY; B IS OUT OF THE MONEY; C IS AT THE MONEY

56. (BIOLOGICAL) Which of the following should be disclosed in relation to agriculture?

a. Separate disclosure of the gain or loss relating to biological asset and agricultural produce
b. The aggregate gain or loss arising on the initial recognition of biological asset and agricultural produce
and from the change in fair value less cost of disposal of biological assets.
c. The total gain or loss from biological assets and agricultural produce
d. There is no requirement to disclose separately gain or loss

57. (BIOLOGICAL) Which of the following is not an impairment indicators requiring impairment test?
a. Labor constraints
b. Increase in the market price of agricultural produce
c. Natural phenomena, such as drought and flood
d. Disease in plants causing decreased productivity

58. (BIOLOGICAL) Immature Bearer Plants are measured

a. Fair Value less cost of disposal
b. Lower of Cost and Net Realizable Value
c. Revaluation model
d. Accumulated cost

59. (INVESTMENTS) When the entity reclassifies a financial asset from fair value through profit or loss to amortized
cost
a. The difference between the new carrying amount of the financial asset at amortized cost and the face
value of the financial asset will be recognized as gain or loss immediately at the profit or loss
b. The fair value immediately after the date of reclassification becomes the new carrying amount of the
financial asset at amortized cost.
c. The fair value at the reclassification date will become the new carrying amount, however any cumulative
gain or loss previously recognized through profit or loss will be adjusted against the fair value at the date
of reclassification.
d. The difference between the new carrying amount of the financial asset at amortized cost and the face
value of the financial asset will be amortized through profit or loss over the remaining life of the financial
asset using the effective interest method.

60. (INVESTMENTS) Preference shares are classified as equity instruments when

a. They provide for redemption on a specific date
b. They provide for redemption on a specific date but the issuer cannot satisfy the obligation to redeem
because of a lack of funds.
c. They provide for redemption at the option of the holder
d. They provide for redemption at the option of the issuer

61. (INVESTMENTS) Which type of dividends considered as income?

a. Stock Dividends c. Shares in lieu of cash
b. Liquidating Dividends d. Cash in lieu of shares

62. (PPE) Which statement is incorrect regarding initial measurement of PPE?

 a. If an asset acquired in exchange for another asset is not measured at fair value, its cost is measured at
the carrying amount of the asset received.
b. If an asset is acquired in exchange for another asset the cost will be measured at the fair value.
c. If payment for an item of property, plant and equipment is deferred, interest at a market rate must be
recognized or imputed.
d. PPE should be initially recorded at cost, which includes all cost necessary to bring the asset to working
condition for its intended use.

63. (PPE) The scope of PFRS 6 does not include

I – Expenses incurred before the exploration for and devaluation of mineral resources, such as expenses incurred
before the entity has obtained the legal rights to explore a specific area.
II – After the technical feasibility and commercial viability of extracting a mineral resources are demonstrable
III – Accounting by entities engaged in the exploration for and evaluation of mineral resources
a. I Only c. I, II and III
b. I and II only d. None of the above

64. (PPE) The following provides facts and circumstances that indicate an entity needs to test exploration and
evaluation assets for impairment, except
a. The period for which the entity has the right to explore in the specific area has expired during the period
or will expire in the near future, and is expected to be renewed.
b. Substantive expenditure on further exploration for and evaluation of mineral resources in the specific
area is neither budgeted nor planned.
c. Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the entity has decided to discontinue such
activities in the specific area.
d. Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
DISCUSSION NOTE: A IS INCORRECT IT SHOULD NOT TO BE RENEWED

65. (PPE) In computing the value in use, how many of these items are excluded
I – Future cash inflows and outflows from financing activities
II – Future cashflow from income tax receipts or payments
III – expectations about possible variations in the amount or timing of those future cash flows
IV – the price for bearing the uncertainty inherent in the asset
V – Expected future cash inflows and outflows from future restructuring to which an entity is not yet committed.
VI – Expected future cash outflows in improving or enhancing the asset’s performance
VII – Factors, such as liquidity, that market participants would reflect in pricing the future cash flows the entity
expects to derive from the asset
a. Two b. Three c. Four d. Five e. None of the above
DISCUSSION NOTE: EXCLUDED ARE ITEM I, II V, AND VI

66. (CURRENT LIAB) Which of the following is not acceptable treatment for the presentation of current liabilities
a. Listing current liabilities in order of maturity
b. Listing of current liabilities according to amount
c. Offsetting current liabilities against assets that are to be applied to their liquidation
d. Showing current liabilities in order of liquidation preference.

67. (CURRENT LIAB) Robinsons has a customer loyalty program which is designed to reward customers for past
purchases and to provide them with incentives to make further purchases. How should this be accounted?
a. The fair value of the consideration received will be recognized fully as revenue.
b. The fair value of the consideration received will be recognized fully as revenue. When the awards are
redeemed a separate revenue line for such sale at a discounted price.
c. The fair value of the consideration received will be allocated between the sale and the award credits.
The award credit points will be is initially deferred and recognized as revenue when redeemed.
 d. The fair value of the consideration received will be allocated between the sale and the award credits.
Both of which are initially recognized as revenue in a separate line item in the income statement.

68. (CURRENT LIAB) Container’s deposit account is usually classified as

a. Current Asset c. Noncurrent Asset
b. Current Liability d. Noncurrent Liability

69. (NONCURRENT LIAB) I - When the effective interest method is used, the periodic amortization increases if the
bonds were issued at a premium. False
II - The proceeds from the sale of a bond will be equal to the sum of the face amount of the bond and the
periodic interest payments. False
III - Bond issue costs should be recorded as a reduction in the carrying amount of bonds payable. True

70. (NONCURRENT LIAB) The difference between the callable preference share and the redeemable preference
share is that
Callable Preference Share Redeemable Preference Share
a. Has no definite redemption date Has a mandatory redemption date.
b. Has a mandatory redemption date Has no definite redemption date
c. Has no definite redemption date Has no definite redemption date
d. Has a mandatory redemption date Has a mandatory redemption date

71. (NONCURRENT LIAB) What is the effective interest rate of a bond or other debt instrument measured at
amortized cost?
a. The stated coupon rate of the debt instrument
b. The interest rate currently charged by the entity or by others for similar debt instrument.
c. The basic, risk free interest rate that is derived from observable government bond prices
d. The interest rate that exactly discounts estimated future cash payments or receipts through the expected
life of the debt instrument or, when appropriate, a shorter period to the net carrying amount of the
instrument.

72. (LEASE) PAS 17 provides that a cancellable lease is deemed non cancelable and thus classified as finance lease
when
a. The lease can be cancelled only upon the occurrence of some less likely contingency.
b. The lease can be cancelled only with the permission of the lessee.
c. The lesse, upon cancelation enters into a new lease for the same or equivalent asset with the different
lessor.
d. If the lessee can cancel the lease and the lessor’s losses associated with the cancelation are borne by the
lessee.
e. All of the above
DISCUSSION NOTE: A IS INCORRECT IT SHOULD BE REMOTE NOT LESS LIKELY; B IS INCORRECT IT SHOULD BE LESSOR; C IS INCORRECT
IT SHOULD BE OF THE SAME LESSOR NOT A DIFFERENT LESSOR

73. (LEASE) Court Company prepared an interest amortization for a five year lease payable with a bargain purchase
option of P20,000, exercisable at the end of the lease. At the end of the five years, the balance in the leases
payable column of the spreadsheet was zero. Court has asked CPA to review the spreadsheet to determine the
error. Only one error was made on the spreadsheet. Which of the following statements represents the best
explanation for the error?
a. Court discounted the annual payments as an ordinary annuity, when the payments actually occurred at
the beginning of each period.
b. The present value of the bargain purchase option was subtracted from the present value of the annual
payments.
c. Court subtracted the annual interest amount from the lease payable balance instead of adding it.
d. The beginning present value of the lease did not include the present value of the bargain purchase
option.
DISCUSSION NOTE: AT THE END OF FIVE YEARS, THE REMAINING AMOUNT SHOULD BE EQUIVALENT TO THE BPO
 74. (LEASE) An entity holds a property that it owns to earn rentals and for capital appreciation. It enters into an
agreement whereby it conveys to an independent third party in return for payment of P1,000 per month the
right to use the building for 10 years. How should this transaction be treated?
Lessor Lessee
A. The property is under PAS 40, the The lease is accounted for under
income is under PAS17 PAS 17.
B. The property is under PAS 16, the The lease is accounted for under
income is under PAS 18 PAS 18.
C. The property is under PAS 40, the The lease is accounted for under
income under PAS 38 PAS 38.
D. None of the above

75. (HELD FOR SALE) A noncurrent asset shall be classified as held for sale when
a. The sale is highly probable
b. The asset is available for immediate sale in the present condition
c. The sale is probable and the asset is available for sale in the present condition
d. The sale is highly probable and the asset is available for immediate sale in the present condition

76. HELD FOR SALE) An entity decided to sell its building within the year used as a company office for 5 years. The
entity is already searching for a buyer at a current market values. At the same time, the company plans to
renovate some of its property to increase its value prior to selling it to the third party. The building will be
accounted for as
a. PAS 16 c. PAS 2
b. PAS 40 d. PFRS 5
DISCUSSION NOTE: PFRS 5 NONCURRENT ASSET HELD FOR SALE REQUIREMENT SHOULD BE AVAILABLE FOR IMMEDIATE SALE. THE
PLAN TO RENOVATE DOES NOT INDICATE FOR IMMEDIATE SALE.

77. HELD FOR SALE) Which of the following is incorrect in relation to the presentation of noncurrent asset held for
sale?
a. The noncurrent asset held for sale are presented separately from other assets in the statement of
financial position.
b. Any cumulative income or expense recognized in other comprehensive income relating to noncurrent
asset classified as held for sale shall be presented separately.
c. If the disposal group is a newly acquired subsidiary that meets the criteria of PFRS 5, the disclosure of
the major classes of assets and liabilities is required.
d. For comparative financial statement, the entity shall not reclassify or re-present amounts previously
presented as non-current asset and liabilities as held for sale.

78. (AR) The aging method of estimating bad debts is

a. A procedure where the amount of sales for the year is multiplied by a certain rate to get the bad debts.
b. A procedure where bad debts are directly related to sales from which they arise and are reported in the
same year of sale.
c. A method in which a rate, which is usually determined from past experience of the business, is
multiplied by the ending accounts receivable balance in order to get the required allowance balance
d. An analysis of the accounts whether or not they are past due.

79. (AR) The gain or loss on note discounting is equivalent to

a. The difference between the net proceed from discounting and the carrying amount of the note
receivable
b. The difference between the maturity value and the net proceeds from discounting
c. The difference between the maturity value and the discount
d. The difference between the net proceeds and the principal amount of the note

80. (INVESTMENTS) How should special assessment be recorded?

Investor Company
a. Additional Cost of the Investment Share Capital
 b. Additional Cost of the Investment Share Premium
c. Share Capital Investment
d. Credited to Cash Investment

81. (INVESTMENTS) A debt instrument must be classified at amortized cost if

I – The business model is both collecting contractual cash flow and selling financial assets.
II – The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
a. Only the I is required c. Both I and II are required
b. Only the II is required d. None of the above
DISCUSSION NOTE: TWO REQUIREMENTS (1) BUSINESS MODEL – TO HOLD THE FINANCIAL ASET IN ORDER TO COLLET CASH FLOWS
ON SPECIFIED DATE (2) CASH FLOW – SOLELY FOR PAYMENTS OF PRINCIPAL AND INTEREST ON THE PRINCIPAL AMOUNT
OUTSTANDING.

82. (INVESTMENTS) 1st statement: Even if the debt instrument meets the requirements to be measured at TOCI or
amortised cost, the PFRS 9 contains option to designate, at initial recognition, a financial asset as measured at
FVPL.
2nd statement: All equity investments in the scope of PFRS 9 are to be measured at FVPL except for those
equity investments for which the entity has elected to present at TOCI.
a. Only the 1st statement is true c. Both statements are true
nd
b. Only the 2 statement is true d. none of the above

83. (INVESTMENTS) If there is objective evidence that an impairment loss on financial asset measured at amortized
cost has been incurred, the amount of loss is measured as
a. The difference between the carrying amount and the present value of estimated cash flows discounted
at the original effective interest rate.
b. The difference between the carrying amount and the present value of estimated cash flows discounted
at the current market rate of interest.
c. The difference between the carrying amount and the absolute amount of estimated cash flows.
d. The difference between the absolute amount of estimated cash flows and present value of estimated
cash flows discounted at the original effective interest rate.

84. (INVESTMENTS) Dane, Inc., owns 35% of Marin Corporation. During the calendar year 2004, Marin had net
earnings of P300,000 and paid dividends of P30,000. Dane mistakenly recorded these transactions using the fair
value method rather than the equity method of accounting. What effect would this have on the investment
account, net income, and retained earnings, respectively?
a. Understate, overstate, overstate
b. Overstate, understate, understate
c. Overstate, overstate, overstate
d. Understate, understate, understate

85. (INVESTMENTS) The following statements are based on PAS 28 (Investment in associates)
1st statement: An investment in associate shall be accounted for using the equity method or cost method.
2nd statement: An investor shall discontinue the use of equity method from the date when it ceases to have
significant influence over an associate and shall account for the investment in associate with PAS 39.
3rd statement: On the loss of significant influence, the investor shall measure at historical cost any investment the
investor retains in the former associate.
A. Only the I statement is false
B. Only the II statement is true
C. Only the III statement is true
D. All of the statements are false

86. (INVESTMENTS) When an investor uses the equity method to account for investments in common stock, the
investment account will be increased when the investor recognizes
a. A proportionate share of the net income of the investee.
b. A cash dividend received from the investee
c. A periodic amortization of an intangible arising from contractual rights acquired in a purchase.
d. Depreciation related to the excess market value over book value of the investee
 87. (INVESTMENTS) 1st statement: The cash surrender value of al life policy arises from the fact that the annual risk
during the early years of the policy is much in excess of the fixed annual premium.
2nd statement: A replacement fund is a cash set aside in anticipation of future acquisition of additional property
because of increased volume of operations
a. True, True c. False, True
b. True, False d. False, False
DISCUSSION NOTE: CASH SURRENDER VALUE ARISES WHEN THE FIXED ANNUAL PREMIUM IS IN EXCESS OF THE ANNUAL RISK DURIN
THE EARLIER YEARS OF THE POLICY. 2ND STATEMENT REFERS TO PLANT EXPANSION FUND

88. (INVESTMENTS) If the investor ceases to have a significant influence over an associate, how should the
investment be treated?
a. It should still be treated using equity accounting
b. It should be treated in accordance with PAS 39
c. The investment should be frozen at the date at which the investor ceases to have significant influence
d. The investment should be treated at cost

89. (PPE) In the reversal of impairment loss for a cash generating unit, the procedure should be
a. First to the goodwill and then to all other noncash assets of the unit prorate based on their carrying
amount.
b. First to all other noncash assets of the unit prorate based on their carrying amount and any excess to the
goodwill.
c. It shall be allocated to the assets of the units, except for goodwill, pro rata with the carrying amounts of
those assets.
d. It shall be allocated to the assets of the units in prorate with the carrying amounts of those assets and
the goodwill should be fully reversed.

90. (PPE) Which of the following is false with regards the measurement of property, plant and equipment
a. An entity shall choose either the cost model or the revaluation model as its accounting policy and shall
apply that policy to an entire class of property, plant and equipment
b. Under revaluation method, the fair value of land and building is usually based on estimate using an
income or depreciated replacement cost approach, if none, then the fair value is from market based
evidence by appraisal that is normally undertaken by professionally qualified valuers.
c. Any accumulated depreciation at the date of the revaluation can be treated by eliminated against the
gross carrying amount of the asset and the net amount restated to the revalued amount of the asset, a
method often used for buildings.
d. If an asset’s carrying amount is decrease as a result of revaluation, the decrease shall be recognized in
profit or loss. However, the decrease shall be recognized in other comprehensive income to the extent of
any credit balance existing in the revaluation surplus in respect to that asset.
DISCUSSION Note: FV should be first using appraisal value (expert) and then an estimate using depreciated replacement cost.

91. (PPE) Which of the following is not a required disclosure for company’s using revaluation method in their
property, plant and equipment?
a. The effective date of the revaluation
b. For each revalued class of property, plant and equipment, the carrying amount that would have been
recognized had the assets been carried under the cost model.
c. The revaluation surplus, indicating the change for the period and any restrictions on the distribution of
the balance to shareholders.
d. None of the above

92. (PPE) The composite depreciation method

a. Does not recognize gain or loss on the retirement of single asset in the group
b. Does not subtract residual value from the base of the depreciation calculation
c. Is an accelerated method of depreciation
d. Is applied to a group of homogenous assets
 93. (CURRENT LIAB) In measuring the provision, the gain from expected disposal of asset will be
a. Recognize and added as part of the provision
b. Recognize but deducted to the provision
c. Recognize but treated separately from the measurement of the provision
d. Should not be taken into account

94. (CURRENT LIAB) Which of the following expenditure should be excluded from the restructuring provision
a. Cost of retraining or relocating continuing staff
b. Marketing or advertising program to promote the new company image
c. Investment in new system and distribution network
d. All of the above

95. (NONCURRENT LIAB) On January 2, 2016, Nast Co. issued 8% bonds with a face amount of P1,000,000 that
mature on January 1, 2022. The bonds were issued to yield 12%, resulting in a discount of P150,000. Nast
incorrectly used the straight line method instead of effective interest method to amortize the discount. Nast
does not elect the fair value option for reporting financial liabilities. How is the carrying amount of the bonds
affected by the error on December 31, 2016 and January 2, 2022 respectively?
a. Overstated, Understated c. Understated, Overstated
b. Overstated, No effect d. Understated, No effect

96. (NONCURRENT LIAB) Bondholders exchanged their convertible bonds for ordinary shares. The carrying amount
of these bonds was lower than market value but greater than the par value of the ordinary shares issued. If the
book value or carrying amount method is used, which of the following correctly states an effect of the
conversion?
a. A loss is recognized
b. Retained earnings account increased
c. Share premium is decreased
d. Shareholder’s equity is increased

97. (LEASE) In negotiating a new or renewed operating lease, the lessor may provide incentives for the lessee to
enter into an agreement. How should these incentives will be treated in the financial statement under lessor and
lessee?
Lessor Lessee
a. Reduction of rental income over the lease term Reduction of rental expense over the lease term
and amortize over straight line and amortize over straight line
b. An addition to the cost of the property Recognize income immediately for such
incentive
c. An addition to the cost of the property No effect in its financial statement
D. Reduction of rental income over the lease term No effect in its financial statement
and amortize over straight line
DISCUSSION Note: SIC 5. Operating leases – Incentives

98. (LEASE) The initial direct cost paid by the lessor will be treated as
Direct Financing Lease Sales Type Lease
A. Expense Added to the cost of the asset
B. Expense Expense
C. Added to the cost of the asset Expense
D. Added to the cost of the asset Added to the cost of the asset

99. HELD FOR SALE) An entity classified a noncurrent asset accounted for under the cost model as held for sale at
the current year end. The entity decided at the end of the following year not to sell the asset but to continue to
use it. The asset should be measured at the end of the following year at
a. The lower of carrying amount and recoverable amount
b. The higher of carrying amount and recoverable amount
c. The lower of carrying amount on the basis that it had never been classified as held for sale and
recoverable amount
d. The recoverable amount
 100. HELD FOR SALE) If the company adopted the revaluation model for the measurement of assets and
when the asset is classified as held for sale, the impairment loss is
a. The difference between the carrying amount of the asset before classification and the fair value less cost
of disposal
b. The difference between the fair value of the asset at the date of classification and the fair value less cost
of disposal
c. The difference between the carrying amount of the asset and the fair value at the date of classification
d. The cost of disposal
DISCUSSION NOTE: IF THE COMPANY ADOPTS REVALUATION MODEL FOR ASSETS, ANY ASSET CLASSIFED AS HELD FOR SALE SHOLD BE
REVALUED TO FAIR VALUE IMMEDIATELY PRIOR TO THE CLASSIFICATION AS HELD FOR SALE. ANY COST OF DISPOSL SHOULD BE
IMPAIRMENT LOSS FOR THE PERIOD. HOWEVER, SUBSEQUENT YEAR END, THE REVALUED ASSET CLASSIFIED AS HELD FOR SALE SHALL
BE MEASURED ALREADY AT THE LOWER OF CARRYING AMOUNT AND FAIR VALUE LESS COST OF DISPOSAL.