CGA-CANADA FINANCIAL ACCOUNTING: CONSOLIDATIONS & ADVANCED ISSUES [FA4] EXAMINATION June 2014 Marks
Notes:
1. 2. 3. 4. 5. 6. 7. All calculations must be shown in an orderly manner to obtain part marks. Round all calculations to the nearest dollar. Narratives for journal entries are not required unless specifically requested. Assume a December 31 fiscal year end unless specifically stated otherwise. Assume all amounts are material unless directed otherwise. Assume all companies are public companies unless otherwise noted. Assume all companies use the fair value enterprise method unless otherwise stated.

Time: 4 Hours

30

Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note:
2 marks each

a.

The International Accounting Standards Board has issued more than 50 accounting standards. Which of the following statements is false with respect to these standards? 1) Member countries must comply with these standards. 2) Many countries, including Canada, have adopted these standards for use by companies listed on stock exchanges in their own countries. 3) Some of the standards allow a choice in accounting methods as long as the chosen method is disclosed. 4) These standards use a principle-based approach rather than a rule-based approach.

b. Which of the following cannot be reported in other comprehensive income? 1) 2) 3) 4) c. Unrealized losses from available-for-sale investments. Exchange losses from investments in self-sustaining foreign subsidiaries. Exchange losses from forward