CONSOLIDATED FINANCIAL STATEMENTS

How much is the consolidated total assets?

• a. 1,992,000

• b. 1,954,000

• c. 1,965,000

• d. 1,972,000

2. What should be the consolidated revenue for the year ended August 2025?

• a. 416,800

• b. 380,000

• c. 436,800

• d. 420,800

3. What amount should Jiyan Inc. report as cost of goods sold in its 2024 consolidated financial statement?

• a. P1,000,000

• b. P860,000

• c. P1,500,000

• d. P1,360,000

4. Verina Inc. purchased 90% interest in Shorekeeper Inc. in 2024 when the Shorekeeper’s book values were equivalent to fair values. Shorekeeper sold equipment with book value of 320,000 to Verina for 520,000 on January 1, 2026, Verina is fully depreciating the equipment over 4-year period by using the straight line method. Shorekeeper reported net income of 1,280,000 for 2026. The share of Verina in the income of Shorekeeper in 2026 is:

• a. P997,000

• b. P1,017,000

• c. P1,002,000

• d. P1,152,000

5. Statement 1: Consolidation starts when control is obtained and ceases when control is lost. Both cases are accounted for retrospectively.

Statement 2: The parent is required to prepare consolidated financial statements except in limited cases mentioned in PFRS 3

• a. True, true

• b. True, false

• c. False, true

• d. False, false

6. The financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries are presented as those of a single economic entity is called

• a. Statement of Financial Position

• b. Consolidation

• c. Consolidated financial statements

• d. Transactions and translation of financial statements

7. Intercompany sales of property, plant, and equipment are also identified as

• a. upstream because only upstream sales affect non-controlling interests.

• b. downstream because only downstream sales affect non-controlling interests.

• c. either downstream or upstream because only upstream sales affect non-controlling interests.

• d. None of the above

8. What is the accounting treatment for the intercompany dividend received by the parent company from the subsidiary after an intercompany dividend transaction?

• a. The dividend income is recognized in the consolidated profit or loss.

• b. The dividend income is eliminated from the consolidated profit or loss.

• c. The dividend income is recorded as a reduction of the investment in the subsidiary.

• d. The dividend income is deferred and recognized over the remaining useful life of the asset.

9. On December 31, 2023, Riize, Inc. owned 90% of Bonedo Corp., a consolidated subsidiary, and 20% of Izna Corp., an investee in which Riize cannot exercise significant influence. On the same date, Riize had receivables of ₱ 300,000 from Bonedo and ₱ 200,000 from Izna. In its December 31, 2023, consolidated balance sheet, Riize should report accounts receivable from affiliates of:

• a. ₱ 500,000

• b. ₱ 340,000

• c. ₱ 200,000

• d. ₱ 230,000

10. From the above information, how much is the net change in the fair value of the of the subsidiary’s net asset since the acquisition date?

• a. 300,000 increase

• b. 80,000 decrease

• c. 100,000 decrease

• d. 258,000 increase