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1. They are a structured representation of the financial position and financial performance of an
entity.
A. An entity may present the components of profit or loss as part of a single statement of
comprehensive income.
B. An entity may present the components of profit or loss in a separate income statement.
C. When prepared, an income statement must be immediately before the statement of
comprehensive income.
D. When a separate income statement is prepared, it is not considered a part of a complete
set of financial statements.
4. A financial review by management that describes and explain the main features of the entitys
financial performance and financial position, and the principal uncertainties it faces
5. For SMEs, if the only changes to the equity during the periods for which the financial
statements are presented arise from profit or loss, payment of dividends, corrections of prior
period errors, and changes in accounting policy, the entity is allowed to present, in place of a
separate statement of comprehensive income and statement of changes in equity, a single
6. For SMEs, which has no items of other comprehensive income in a period, the bottom line in
its income statement or statement of comprehensive income is labeled
A. Comprehensive income
B. Net income
C. Total comprehensive income
D. Profit or loss
7. S1. An entity whose financial statements comply with PFRS shall make an explicit and
unreserved statement of such compliance in the notes to financial statements.
S2. An entity shall not describe financial statements as complying with PFRSs unless they
comply with substantially all of the requirements of PFRS.
S3. An entity can rectify inappropriate accounting policies either by disclosure of the
accounting policies used or by notes or explanatory material.
8. Which of the basic financial statements is not prepared using the accrual basis of accounting?
A. None
B. Statement of financial position
C. Statement of cash flows
D. Statement of comprehensive income
9. Per PAS 1, on frequency of reporting, an entity shall present a complete set of financial
statements (including comparative information)
A. At least annually
B. Whenever the entity wishes
C. At least semi-annually
D. Quarterly
10. An entity disclosing comparative information shall present, as a minimum (choose the
incorrect statement)
12. XYZ Inc. decided to extend its reporting period from a year (12-month period) to a 15-month
period. Which of the following is not required under PAS 1 in case of change in reporting
period?
A. XYZ Inc. should disclose the reason for using a longer period than a period of 12 moths.
B. XYZ Inc. should change the reporting period only if other similar entities in the
geographical area in which it generally operates have done so in the current year;
otherwise its financial statements would not be comparable to others.
C. XYZ Inc. should disclose the comparative amounts used in the financial statements are
not entirely comparable.
D. XYZ Inc. should disclose the fact that amounts presented in the financial statements are
not entirely comparable.
13. Which of the following information is not specifically a required disclosure of PAS1?
A. Name of the reporting entity or other means of identification, and any change in that
information from the previous year.
B. Level of rounding used in presenting the financial statements
C. Whether the financial statements cover the individual entity or a group of entities
D. Names of major/significant shareholders of the entity
E. The presentation currency
14. Courier Trading is a manufacturing entity in the Philippines. It sells its products, buys it
materials and supplies, pays its employees and obtains its financing sources in Philippine pesos.
Due to reporting requirements, the FS of Courier for the current year are stated in US dollars.
Which is false?
16. According to the conceptual framework, which of the following statements conforms to the
realization concept?
A. Equipment depreciation was assigned to production department and then to product unit
costs.
B. Depreciated equipment was sold in exchange of a note receivable.
C. Cash was collected on account receivable
D. Product unit costs were assigned to cost of goods sold when the units were sold.
17. Under current PFRSs, which of the following statements is (are) true?
S2. Financial assets classified as held for trading are always current assets.
A. S1 only
B. S1 and S2
C. S2 only
D. Neither S1 nor S2
18. A liability shall be classified as current asset when (choose the incorrect one)
20. Some borrowing agreements incorporate covenants which have the effect that the liability
becomes payable on demand if certain conditions related to covenants are breached. In such a
case, the liability is classified as:
I. Current even if the lender has agreed, after the reporting period and before the statements
are authorized for issue, not to demand payment as a consequence of the breach.
II. Noncurrent when the lender has agreed on or before the end of the reporting period to
provide a grace period ending at least 12 months after that date.
A. Either I or II
B. Neither I nor II
C. I only
D. II only
21. Which of the following is not the basic purpose of the notes to financial statements?
A. To present information about the basis of preparation of the FS and the specific
accounting policies selected and applied.
B. To disclose the information required by the PFRS that is not presented elsewhere in FS.
C. To provide additional information which is not presented on the face of FS but that is
necessary for a pair presentation.
D. To provide information about the financial position, financial performance and cash flow
of an entity that is useful to a wide range of users in making economic decision.
22. Among the following, which is normally the first disclosure contained in the notes to FS?
A. Other disclosure
B. Supporting information for items presented on the face of FS
C. Summary of significant accounting policies
D. Statement of compliance with PFRS
23. Which one of the following is not required to be presented as minimum information on the
face of statement of financial position?
A. Investment property
B. Investment accounted for under equity method
C. Biological asset
D. Contingent liability
24. Which one of the following is not required to be presented as minimum information on the
face of statement of financial position?
A. Investment property
B. Noncurrent asset held for sale
C. Provisions
D. Goodwill
26. When an entity presents the income statement items based on their nature, no allocations of
expenses to functional classifications are necessary. Which of the following is not a classification
of expense by nature?
27. When an entity opts to present the income statement classifying expenses by function, which
of the following is not required to be disclosed as additional information?
A. Depreciation expense
B. Employee benefits expense
C. Directors remuneration
D. Amortization expense
31. Which of the following is not a generally practiced method of presenting the income
statement?
33. Which of the following is true about intra period tax allocation?
A. It arises because certain revenues and expenses items appear in the income statement
either before or after they are included in the tax return
B. It is required for extraordinary items and cumulative effect of accounting changes but not
for prior period adjustments
C. Its purpose is to allocate income tax expense evenly over a number of accounting periods
D. Its purpose is to relate the income tax expense to items which affect the amount of tax
A. Dividend revenue
B. Losses on disposal of assets
C. Investments by owners
D. Unrealized holding gains
2. The IASB encourages publicly traded entities to provide interim financial reports
A. At least at the end of the half-year end and within 60 days of the end of interim period
B. Within a month of the half-year end
C. On a quarterly basis
D. Whenever the entity wishes
A. The year-end financial statements are deemed not to comply with PFRS
B. The year-end financial statements compliance with PFRS is not affected
C. The year-end financial statements will not be acceptable under local legislation
D. Interim financial reports should be included in the year-end financial statements
5. PAS 34 states a presumption that anyone reading interim financial reports will
6. An entity owns a number of farms that harvest produced seasonally. Approximately 80% of
entitys sales are in the periods of August to October. Because the entitys business is seasonal,
PAS 34 suggests
A. Additional notes be written in the interim reports about the seasonal nature of the
business
B. Disclosure of the financial information for the latest and comparative 12-month period in
addition to the interim report
C. Additional disclosure in the accounting policy note
D. No additional disclosure
7. An entity is preparing half-yearly financial information in line with PAS 34. The period to be
covered by the FS is the 6 months to June 30, 20X7. A new IFRS has been published that is
effective for periods beginning on or after January 1, 20X7. The entity must adopt the PFRS
A. An extraordinary is defined as being material based on the relationship of the item to the
interim period results
B. The results of a disposal of a business segment maybe considered material for the interim
period but not for the annual period
C. No income tax effect will be recognized in an interim period that incur a loss
D. The income tax rate to be used for an interim period is based on the estimated income tax
and return on annual income
10. Minimum disclosure are not required as part of interim financial reporting
11. Which of the following inventory procedures cannot be applied for interim reporting?
12. Minimum disclosure requirements for companies using interim financial information will
include which of the following?
A. Sales and cost of goods sold for the current quarter and the current year to date
B. The contribution margin by product line for current quarter and the current year to date
C. Primary and fully diluted EPS for each period presented
D. An interim statement of financial position
13. For interim financial reporting, an inventory loss from a temporary market decline in the first
quarter which can be reasonably be expected to be restored in the fourth quarter
A. Should be recognize as a loss proportionately in each of the first, second, third and fourth
quarter
B. Should be recognize as a loss in the first quarter
C. Need not be recognize as a loss in the first quarter
D. Should be recognize as a loss in each of the first, second and third quarter
14. Which of the following need not be disclosed in interim financial statements?
A. EPS
B. Changes in accounting principles
C. Seasonal revenue
D. Components of cost of goods sold
A. Can be recognized in any interim period provided they are recognized in the year of
incurrence
B. Should be recognized in the year of incurrence if they cannot be allocated among interim
periods on a reasonable basis
C. Should be allocated in a pro rata basis to all interim periods from the date of incurrence to
the end of fiscal year
D. May be treated as if they were annualized cost
16. Most interim periods gain and losses, for the purpose of interim disclosure
19. Choose the correct statement concerning GAAP as it relates to interim reports for business
enterprises.
A. Deferred and recognize in the last interim period of the fiscal year in which they occurred
B. Recognized in full in the interim period in which they occurred
C. Ignored because the focus of interim reporting is on recurring items
D. Apportioned over the interim period in which first recognized subsequent interim periods
of the fiscal year
21. Which statements best describes a view of interim reports relative to annual reports, for
purpose of interim reporting?
22. Choose the correct statement concerning recognition of expense in interim reports.
A. All interim period costs must be associated with revenue in the interim period
B. Some cost can be allocated arbitrarily to any of the interim periods reported within the
year
C. Cost which are directly associated with revenue should be matched against that revenue
in the interim period
D. Interim period expense recognition follows GAAP for annual periods for all cost
23. Which of the following methods of inventory valuation is allowable at interim dates but not
at year end?
A. Retail method
B. Specific identification
C. Weighted average
D. Estimated gross profit rates
24. If annual major repairs made in the first quarter and paid for in the second quarter clearly
benefit the entire year, when should they expensed?
26. For external reporting purpose, it is appropriate to use estimated gross profit rates to
determine the cost of goods sold for
27. Which entries are required by PAS 34 to present interim financial reports?
I. Publicly-listed entities
II. Private entities
A. I only
B. II only
C. Both I and II
D. Neither I nor II
28. Not a required statement when an entity presents quarterly interim reports for 2012
A. Statement of financial position at June 30, 2012 and December 31, 2011
B. Statement of comprehensive income for the 6 months ending June 30, 2012 and June 30,
2011
C. Statement of comprehensive income for the 3 months ending June 30, 2012 and June 30,
2011
D. Statement of cash flows for the 3 months ending June 30, 2012 and June 30, 2011
29. For interim financial reporting, an extraordinary gain occurring in the second quarter should
be
1. Per PAS 10 Events after the Reporting Period, these are events that provide evidence of
conditions that existed at the end of reporting period
A. The settlement after the reporting period of a court case that confirms that the entity had a
present obligation at the end of the period
B. The bankruptcy of a customer that occurs after the reporting period
C. The determination after the reporting period of the amount of profit-sharing or bonus
payments
D. Decline in market value of investments between the end of the reporting period and the
date when the FS are authorized for issue
4. If dividends are declared after the reporting period but before the FS are authorized for issue
A. The dividends are not reflected in the FS
B. No liability shall be recognized at the end of the reporting period
C. No disclosure shall be included in the FS
D. The dividends shall be accrued as at the end of the reporting period
5. ABC Ltd. decided to operate a new amusement park that will cost P1million to build in the
year 2005. Its financial year-end is December 31, 2005. ABC Ltd. has applied for a letter of
guarantee for P700, 000. The letter of guarantee was issued on March 31, 2006. The audited FS
have been authorized to be issued on April 18, 2006. The adjustment required to be made to the
FS for the 3 year ended December 31, 2005, should be
6. A new drug named EEE introduced by Genius Inc. in the market on December 1, 2005.
Genius Inc.s financial year ends on December 31, 2005. It was the only company that is
permitted to manufacture this patented drug. The drug is used by patients suffering from an
irregular heartbeat. On March 31, 2006, after the drug was introduced, more than 1000 patients
died. After a series of investigation, authorities discovered that when this drug was
simultaneously used with BBB, a drug used to regulate hypertension, the patients blood
would clot and the patient suffered stroke. A law suit for P100,000,000 has been filed against
Genius Inc. The financial statements were authorized for issuance on April 30, 2006. Which of
the following options is appropriate accounting treatment for this post-balance sheet event PAS
10?
A. The entity should provide P100,000,000 because this is an adjusting events and the
financial statements were authorized to be issued after the accident.
B. The entity should disclose P100,000,000 as a contingent liability because it is an
adjusting event.
C. The entity should disclose P100,000,000 as a contingent liability because it is a present
obligation with an improbable outflow.
D. Assuming the probability of law suit being decided is remote, the entity should disclose it
in the footnotes, because it is a non-adjusting material event.
7. At the balance sheet date, December 31, 2005, ABC Inc. carried a receivable from XYZ, a
major customer, at P10 million. The authorization date of the financial statements is on
February 16, 2006. XYZ declared bankruptcy on Valentines Day (February 14,2006). ABC Inc.
will
8. Excellent Inc. built a new factory building during 2005 at a cost of P20 million. At December
31, 2005, the net book value of the building was P19 million. Subsequent to year-end, on March
15, 2006, the building was destroyed by fire and the claim against the insurance company proved
futile because the cause of the fire was negligence on the part of the caretaker of the building. If
the date of authorization of the FS fir the year ended December 31,2005, was March 31, 2006,
Excellent Inc. should
A. Write the net book value to its scrap value because the insurance claim would not fetch
any compensation.
B. Make a provision for one-half of the net book value of the building.
C. Make a provision to three fourths of the net book value of the building based on prudence
D. Disclose this non-adjusting event in the footnotes.
9. International Inc. deals extensively with foreign entities, and its FS reflect these foreign
currency translations. Subsequent to the balance sheet date, and before the date of
authorization of the issuance of the FS, there were abnormal fluctuations in foreign currency
rates. International Inc. should
A. Adjust the foreign exchange year-end balance to reflect all the abnormal adverse
fluctuations in foreign exchange rates
B. Adjust the foreign exchange year-end balance to reflect the abnormal adverse fluctuations
in foreign exchange rates (and not just adverse movements)
C. Disclose the post balance sheet event in footnotes as a non-adjusting event
D. Ignore the post-balance sheet event
10. Which of the following events after the reporting period would generally, but no adjustment
of the FS?
11. Which of the following subsequent events would require adjustment of the accounts before
issuance of the financial statements?
A. Loss of plant as a result of fire
B. Changes in the quoted market prices of securities held as an investment
C. Loss on an uncollectible account receivable resulting from a customers major flood loss
D. Loss on a lawsuit, the outcome of which was deemed uncertain at year end
I. That engages in business activities from which it may earn revenues and incur expenses
(including revenues and expenses relating to transactions with other components of the
same entity)
II. Whose operating results are regularly reviewed by the entitys chief operating decision
maker to make decisions about resources to be allocated to the segment and assess its
performance
III. For which discrete financial information is available
A. I and II C. I and Ill
B. II and Ill D. I, II and Ill
2. Per PFRS 8, its function is to allocate resources to and assess the performance of the operating
segments of an entity.
A. Chief operating decision maker C. Segment manager
B. Executive director D. Chief executive officer
3. Statement 1. Segment reporting shall apply to the separate or individual and consolidated
financial statements of entities whose equity or debt instruments are traded in a public market.
Statement 2. If a financial report contains both the consolidated and the separate financial
statements of the parent, segment information must be presented on both the consolidated and
separate financial statements.
A. True True C. False False
B. True False D. FalseTrue
4. Enterprise-wide disclosures include disclosures about: (A) Geographic areas; (B) Allocated
costs
A. (A)Yes;()yes C. (A)No;(B)No
B. (A) Yes; (B) No D. (A) No; (B) Yes
A . Yes Yes
B. Yes No
C. No Yes
D. No No
6. In financial reporting for segments of a business, an enterprise shall disclose all of the
following except
A. Types of products and services from which each reportable segment derives its revenues
B. The title of the chief operating decision maker of each reportable segment
C. Factors used to identify the enterprises reportable segments
D. The basis of measurement of segment profit or loss and segment assets
7. In financial reporting for segments of a business enterprise, segment data may be aggregated
A. Before performing the 10% tests if a majority of the aggregation criteria are met
B. If the segments do not meet the 10% tests but meet all of the aggregation criteria
C. Before performing the 10% tests if all of the aggregation criteria are met
D. If any one of the aggregation criteria are met
8. The method used to determine what information to report for business segments is referred to
as the
9. Two or more operating segments may be aggregated into a single operating segment if
aggregation is consistent with the core principle of PFRS 8, and the segments are similar in each
of the following respects: (choose the exception)
I. Operating segments that do not meet any of the quantitative thresholds may be
considered reportable, and separately disclosed, if management believes that information
about the segment would be useful to users of the financial statements.
II. An entity may combine information about operating segments that do not meet the
quantitative thresholds with information about other operating segments that do not meet
the quantitative thresholds to produce a reportable segment only if the operating segments
have similar economic characteristics and share any of the aggregation criteria.
A. I only C. I and Il
B. Il only D. None
13. A segment of a business enterprise is to be reported separately when the revenues of the
segment constitute 10 percent or more of the:
A. total combined revenues of all segments reporting profits
B. total revenues of all the enterprises industry segments
C. total export and foreign sales
D. combined net income of all segments reporting profits
14. Nenn Inc. is a multidivisional corporation which has both intersegment sales and sales to
unaffiliated customers. Nenn should report segment financial information for each division
meeting which of the following criteria?
A. Segment profit or loss is 10% or more of consolidated profit or loss
B. Segment profit or loss is 10% or more of combined profit or loss of all company
segments
C. Segment revenue is 10% or more of combined revenue of all the company segments
D. Segment revenue is 10% or more of consolidated revenue
3. To enable financial statement users to form a view about the effects of the related-party
transactions, PAS 24 requires certain disclosures to be made. Which of the following disclosures
is not a mandated disclosure under PAS 24? .
A. Relationships between parents and subsidiaries irrespective of whether there have been
transactions between those related parties.
B. Names of all the associates that an entity has dealt with during the year
C. Name of the entitys parent and, if different, the ultimate controlling party
D. If neither the entitys parent nor its ultimate controlling entity produces financial
statements available for public use, then the name of the next most senior parent that does
so
4. If there were related-party transactions during the year, an entity needs to make, at a
minimum, certain disclosures. Which of the following is not a required minimum disclosure
under PAS 24?
A. The amount of the related-party transactions
B. The amount of the outstanding related-party balances and their terms and conditions
along with details of guarantees given and received
C. The amounts of similar transactions with unrelated (third) parties to establish that
comparable related-party transactions have been entered at arms length
D. Provisions for doubtful debts related to the amount of outstanding related-party balances
and expense recognized during the year in respect of bad or doubtful debts due from
related parties
5. The minimum disclosures prescribed under PAS 24 are to be made separately for certain
categories of related parties. Which of the following is not among the list of categories specified
under the Standard for the purposes of separate disclosure?
A. Entities with joint control or significant influence over the entity
B. The parent company of the entity
C. An entity that has a common director with the entity
D. Joint ventures in which the entity is a venturer
2. A contingent liability is a
I. Possible obligation that arises from past event and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the entitys control.
II. Contingent liability is a present obligation that arises from past event but is not
recognized because it is not probable that a transfer of economic benefits will be required
to settle the obligation or the amount of the obligation cannot be measured reliably.
A. Both I and Il C. I only
B. Neither I nor Il D. Il only
I. The amount recognized should be the best estimate of the expenditure required to settle
the obligation.
II. Where there is a continuous range of possible outcomes and each point in that range is
as likely as any other, the midpoint of the range is used.
III. Where the provision measured involves a large population of items, the obligation may
be statistically estimated by weighting all possible outcomes by their associated
possibilities.
4. Sl. A contingent liability is disclosed and recognized in the books when it is both probable and
measurable.
S2. A contingent asset is disclosed and recognized in the books when it is both probable and
measurable.
A. True True C. False False
B. True False D. FalseTrue
A. Both I and lI .
B. B. Neither I nor II
C. I only
D. II only
6. Its an obligation that is derived from an entity s actions where the entity has indicated to other
parties that it will accept certain responsibilities by reason of an established pattern of past
practice published policy or a sufficiently specific current statement and as a result the entity has
created a valid expectation on the part of other parties that it will discharge those responsibilities.
A. Constructive obligation C: Contingent obligation
B. Legal obligation D. Present obligation
7. Which of the following statements is correct when some or all-of the expenditures required to
settle a provision is expected to be reimbursed by another party? -
8. Management can estimate the amount of loss that will occur if a foreign government
expropriates some company assets. If expropriation is reasonably possible, a loss contingency
should be
9. Invern Inc. has a self-insurance plan Each year retained earnings is appropriated for
Contingencies in an amount equal to insurance premiums saved less recognized losses from
lawsuits and other claims. As a result of a 2012 accident, Invern s a defendant in a lawsuit in
which it will probably have to pay damages of P 190,000. What are the effects of this. lawsuits
probable outcome on Inverns 2012 financial statements?
A. An increase in expenses and no effect on liabilities
B. An increase in both expenses and liabilities
C. No effect on expenses and an increase in liabilities
D. No effect on either expenses or liabilities
A. When there is a legal obligation arising from a past (obligating) event, the probability of
the outflow of resources is more than remote (but less than probable), and a reliable
estimate can be made of the amount of the obligation
B. When there is a constructive obligation as a result of a past (obligating) event, the
outflow of resources is probable, and a reliable estimate can be made of the amount of the
obligation
C. When there is a possible obligation arising from a past event, the outflow of resources is
probable, and an approximate amount can be set aside toward the obligation
D. When management decides that it is essential that a provision be made for unforeseen
circumstances and keeping in mind this year the, profits were enough but next year there
may be losses
11. Amazon Inc. has been served a legal notice on December 15, 20X1, by the local
environmental protection agency (EPA) to fit smoke detectors in its factory on or before June 30,
20X2 (before June 30 of the following year). The cost of fitting smoke detectors in its factory is
estimated at P250,000. How should Amazon Inc. treat this in its financial statements for the year
ended December 31, 20X1?
A. Recognize a provision for P250,000 in the financial statements for the year ended
December 31, 20X1
B. Recognize a provision for P125,000 in the financial statements for the year ended
December 31, 20X1, because the other 50% of the estimated amount will be recognized
next year in the financial statement for the year ended December 31, 20X2
C. Because Amazon Inc. canavoid the future expenditure by changing the method of
operations and thus there is no present obligation for the future expenditure, no provision
is required at December 3, 20X1, but as there is a possible obligation, this warrants
disclosure in footnotes to the financial statements for the year ended December 31, 20X1
D. ignore this forth purposes of the financial statements for the year ended December 31,
20X1, and neither disclose nor provide the estimated amount of P250,000
12. A competitor has sued an entity for unauthorized use of its patented technology. The amount
that the entity may be required to pay to the competitor if the competitor succeeds in the lawsuit
is determinable with reliability, and according to the legal counsel it is less than probable (but
more than remote) that an outflow of the resources would be needed to meet the obligation. The
entity that was sued should at yearend:
13. Management can estimate the amount of loss that will occur if a foreign government
expropriates some company assets. If expropriation is reasonably possible, a loss contingency
should be
14. In 2012, a contract dispute between Dollis Co. and Brooks Co. was submitted to binding
arbitration. In 2012, each partys attorney indicated privately that the probable award in Dollis
favor could be reasonably estimated. In 2013, the arbitrator decided in favor of Dollis. When
should Dollis and Brooks recognize their respective gain and loss?
Dollis gain Brooks loss
A. 2012 2012
B. 2012 2013
C. 2013 2012
D. 2013 2013
15. A factory owned by XYZ Inc. was destroyed by fire. XYZ Inc. lodged an insurance clairl, for
the value of the factory building, plant, and an amount equal to one years net profit. During the
year there were a number of meetings with the representatives of the insurance company. Finally,
before year-end, it was decided that XYZ Inc. would receive compensation for 90% of its claim.
XYZ Inc. received a letter that the settlement check for that amount had been mailed, but it was
not received before year-end. How should XYZ Inc. treat this in its financial statements?
16. It is a program that is planned and controlled by management, and materially changes either:
(a) the scope of a business undertaken by an entity; or (b) the manner in which that business is
conducted.
17. The board of directors of ABC Inc. decided on December 15, 2OXX, to wind up
international operations in the Far East and move them to Australia. The decision was based on a
detailed formal plan of restructuring as required by lAS 37. This decision was conveyed to all
workers an management personnel at the headquarters in Europe. The cost of restructuring the
operations in the Far East as per this detailed plan was P2 million. How should ABC Inc. treat
this restructuring in its financial statements for the year-end December 31, 2OXX?
A. Because ABC Inc. has not announced the restructuring to those affected by the decision
and thus has not raised an expectation that ABC Inc. will actually carry out the
restructuring (and as no constructive obligation has arisen), only disclose the
restructuring decision and the cost of restructuring of P2 million in footnotes to-the
financial statements
B. Recognize provision for restructuring since the board of directors has approved it and it
has been announced in-the headquarters of ABC Inc. in Europe
C. Mention the decision to restructure and the cost involved in the chairmans statement
in the annual report since it a decision of the board of directors
D. Because the restructuring has not commenced before year-end, based on prudence, wait
until next year and do nothing in this years financial statements