1. The document appears to be a quiz taken by Sivaneeshwary A/P Murugan on 5/24/2021 covering topics related to PAF3063. It includes multiple choice questions about related parties, cash flows, accounting for associates, and control. 2. Sivaneeshwary scored 9 out of 25 points on the quiz. The questions cover topics such as determining if entities are related parties, classifying transactions in the statement of cash flows, accounting for associates, and assessing control of one entity by another. 3. No overall summary of the document is provided, as it appears to be a quiz taken by an individual student containing multiple independent accounting questions.

1. 5/24/2021 Quiz 2 PAF3063
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SIVANEESHWARY A/P MURUGAN
D20191090297
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(a) Kedah Bhd and Ladang Bhd are not related parties
(b) Kedah Bhd and Ladang Bhd are related parties
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(a) Outflow of cash as investing activity of RM20 million.
(b) Outflow of cash as investing activity of RM5 million and inflow of RM15 million in
financing activities.
Quiz 2 PAF3063 Total points 9/25
Name: *
Matrics Number *
1. Mr Bee is the financial director of Kedah Bhd. He is also a non-
executive director of Ladang Bhd. He does not own any shares in Kedah
and Ladang companies. Determine the relationship between those
entities. *
2. An entity acquires a building costing RM20 million by issuing the
entity's shares and cash of RM5 million. This acquisition is disclosed in
the statement of cash flow as: *

2. 5/24/2021 Quiz 2 PAF3063
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g
(c) Outflow of cash as investing activity of RM5 million only.
(d) Outflow of RM20 million in investing activity activity, inflow in financing
activity of RM15 million (RM15 million in issues of shares)
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(a) are cash inflows from operating activities
(b) are cash inflows from financing activities
(c) could be classified as operating or financing cash flows
(d) could be classified as operating or investing cash flows
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(a) RM500,000.00
(b) RM300,000.00
(c) RM200,000.00
(d) none
3. Interest and dividends received: *
3. An investor sells inventory to an associate in which it has a 40% stake.
The cost of the inventory was RM1 million and it was sold for RM1.5
million. All of this goods remain unsold. How much profit should be
disclosed in the group income statement? *

3. 5/24/2021 Quiz 2 PAF3063
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(a) Significant influence can be gained or lost without a change in absolute or
relative ownership levels.
(b) In determining whether an entity has significant influence over another entity, the
existence and effect of potential voting rights that it holds that are currently
exercisable or convertible are considered.
(c) An entity considers the existence and effect of potential voting rights held by
other parties that are currently exercisable or convertible when determining whether
it has significant influence over another entity.
(d) In determining whether an entity has significant influence over another entity,
only present ownership interests are considered. The possible exercise or
conversion of potential voting rights are not considered.
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(a) Berry is an associate of Rose
(b) They are independent of each other as Rose does not hold any shares in Berry.
(c) Berry becomes a sub-subsidiary of Rose as Rose is able to exert control over
Berry through Lemon.
(d) Berry is the subsidiary of Lemon and Berry is excluded from consolidation
4. Which of the following statements is false?
5. Rose acquired 75% of the equity shares of Lemon on 1 January x2.
Lemon has 60% interest in Berry from 1 January x1. What is the
relationship between Rose and Berry? *

4. 5/24/2021 Quiz 2 PAF3063
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(a) Yes, Randal Bhd and Sullivan corporation are related parties.
(b) No, Randal Bhd and Sullivan corporation are not related parties.
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(a) Yes, it can be excluded as the subsidiary is not situated in the same country as
the parent.
(b) Yes, as the dividends cannot be repatriated.
(c) Yes, if the parent loss control
(d) No, as all subsidiarieshave to be consolidated.
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(a) It should be ignored
(b) It should be amortised.
( ) It h ld b di l d i th i t ’ it
6. Randal Bhd established a special purpose entity (Sullivan corporation)
for the sole purpose of conducting scientific research for the benefit of
Randal Bhd. Randal Bhd does not own any of the issued share capital of
Sullivan corporation. Determine whether Randal Bhd is related to Sullivan
corporation. *
7. A parent has a subsidiary in a foreign country and there is severe
restriction of repatriation of dividends from the subsidiary. Can the
subsidiary be excluded from being consolidated? *
9. If there is any excess of the investor’s share of the net fair value of the
associate’s identifiable assets and contingent liabilities over the cost of
the investment, how should it be treated? *

5. 5/24/2021 Quiz 2 PAF3063
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(c) It should be disclosed in the investor’s equity.
(d) It should be recognised in the income statement of the investor.
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(a) Investing activity - proceeds of RM2.5 million.
(b) The loss to the profit before tax in the operating activity plus inflow of cash of
RM1.5 million in investing activity.
(c) Inflow of cash of RM1.5 million in investing activity.
(d) The loss to the profit before tax in the operating activity plus inflow of cash of
RM2.5 million in investing activities.
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(a) Encik Ali is a related party (but company B is not a related party).
(b) company B is a related party (but Encik Ali is not a related party).
(c) both Encik Ali and company B are related parties.
(d) neither Encik Ali nor company B is a related party.
10. A company disposes of a plant and incurs a loss of RM 1 million. The
carrying amount of the plant is RM2.5 million. In the statement of cash
flows, the following are disclosed.
11. Encik Ali is the managing director of company A. Encik Ali does not
own any shares in company A. However, he owns 45 per cent of the
equity that carry voting rights at a general meeting of shareholders of
company B. He and Mr Zack (who also owns 45 per cent of company B)
have contractually agreed to jointly control company B. *

6. 5/24/2021 Quiz 2 PAF3063
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(a) RM25 million x 40% = RM10 million.
(b) RM5 million + (RM22 million – RM10 million) x 30% = RM4.9 million.
(c) RM22 million + RM5 million x 40% = RM10.8 million.
(d) RM5 million + negative goodwill of RM1 million + (RM22 million – RM15
million) = RM8.8 million.
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a. company F and company G are not related parties of each
b. company H is not a related party of company I.
c. company I is a related party of both companies F and G
d. companies F and G are related parties of each other
e. company H is a related party of company I.
f. (a), (b) and (c)
g. (c), (d) and (e)
13. Daris acquired 40% of the issued ordinary share capital of Impiana at
a cost of RM5 million. The fair value of the net assets of Impiana on that
date was RM15 million. At the end of the financial year, the net assets of
Impiana were RM22 million. Recoverable amount was RM25 million. What
will be the carrying amount of the investment disclosed in the
consolidated financial statement? *
14.Company F, Company G and Company H own 45 per cent, 45 per cent
and 10 per cent respectively of the ordinary shares that carry voting
rights at a general meeting of shareholders of I company. Companies F
and G have contractually agreed to jointly control over company I.
Identify the correct answer. *

7. 5/24/2021 Quiz 2 PAF3063
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(a) representation on the board of directors or equivalent governing body of the
investee.
(b) participation in policy-making processes, including participation in decisions
about dividends or other distributions.
(c) material transactions between the investor and the investee.
(d) interchange of managerial personnel.
(e) provision of essential technical information.
(f) (a) and (b) above.
(g) all of the above.
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(a) Apple company and Bunga company are not related.
(b) Apple company and Camara company are not related.
(c) Both Bunga and Camara companies are not related.
(d) Both Bunga and Camara companies are related.
15. Which of the following indicators could provide evidence to support
the existence of significant influence by an investor? *
16. Apple company owns 60 per cent and 5 per cent respectively of the
ordinary shares that carry voting rights at a general meeting of
shareholders of Bunga company and Camara company. Bunga also owns
18 per cent of the ordinary shares that carry voting rights at a general
meeting of shareholders of Camara company. All ordinary shares carry
equal voting rights. Based on the question, which answer is true.

8. 5/24/2021 Quiz 2 PAF3063
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a. Companies X and B are related parties, companies X and A are related.
b. Companies A and B are related parties, companies X and A are related.
c. Companies A and C are related parties, companies B and C are related.
d. Companies A, B, C and X are related parties to each other.
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a. Due to the normal dealing between Jumanji company and Kangar, thus they
are related parties.
b. Due to the normal dealing between Jumanji company and Kangar company,
Jumanji and Kangar companies are not related parties.
17. Companies A and X jointly share control over company B. Company A
has significant influence over company C. *
18. Jumanji company operates in a country in which a state-owned entity
(Kangar company) has a legally protected monopoly over the supply of
water in that country. Accordingly, Jumanji company depends on Kangar
company to provide the water needed to operate its plant. Recently, the
demand has exceeded the supply of water in that country. In response to
the shortfall, Kangar company has rationed the supply of water in the
jurisdiction that it supplies. The shortage of power has caused Jumanji
company to operate at suboptimal levels. *

9. 5/24/2021 Quiz 2 PAF3063
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(a) No, AB cannot exercise control over Z as it has less than 50% of the equity
shares.
(b) Yes, AB can exercise control over Z as it has control over the board of directors.
(c) Yes, AB can have control solely because it has an agreement with Blue.
(d) No, as AB can only control the board of directors.
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(a) Due to the dealing between Jejarum company and Meibank, Jejarum company
and Meibank are related parties.
(b) Due to the dealing between Jejarum company and Meibank, Jejarum and
Meibank are not related parties.
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19. AB owns 40% of the equity shares of Z and is the largest shareholder.
It is able to control the board of directors. At the same time, AB has an
agreement with another shareholder Blue who holds 10% of the shares
of Z whereby it will vote in agreement with AB. Can AB exercise control
over Z?
20. Jejarum company is funded mostly by a loan from a commercial bank
(Meibank). The terms of the loan place a number of restrictions on
Jejarum company, including solvency requirements and restrictions on
the extent to which Jejarum company can distribute accumulated profits
to its owners.
Use the following information for questions 21-22. Angsana Bhd acquired
60 per cent of the equity of Borhan Bhd on 1 June 2021 for RM520,000
(cash)when the fair value of Borhan’s Bhd identifiable net assets (total
assets less total liabilities and contingent liabilities) was RM1,000,000
(including cash and cash equivalents of RM100,000). With effect from 1

10. 5/24/2021 Quiz 2 PAF3063
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Option 1
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(a) a cash inflow of RM520,000
(b) a cash outflow of RM520,000
(c) a cash inflow of RM420,000
(d) a cash outflow of RM420,000
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(a) a cash inflow of RM520,000
(b) a cash outflow of RM520,000
(c) a cash inflow of RM420,000
(d) a cash outflow of RM420,000
( g q )
June 2021 Angsana Bhd controls Borhan Bhd.
21. In the group’s consolidated statement of cash flows the separate line
item ‘cash flow on acquiring a subsidiary’ is:
22. However, with effect from 1 June 2021 Angsana Bhd has significant
influence (that is neither control nor joint control) over Borhan Bhd. In its
statement of cash flows Angsana Bhd reports the separate line item
‘cash flow on acquiring an associate’ as:

11. 5/24/2021 Quiz 2 PAF3063
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(a) Yes, Bilbo Co can have control solely because it has an agreement with Legolas
Co.
(b) Yes, Bilbo Co can exercise control over Thorin Co. as it has control over the board
of directors.
(c) No, as Bilbo Co can only control the board of directors.
(d) No, Bilbo Co cannot exercise control over Thorin Co. as it has less than 50%
of the equity shares.
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(a) within non-current liability.
(b) between equity and non-current liability.
(c) within equity but separate from the parent shareholders’ equity.
(d) any where in equity.
23. Bilbo Co owns 45% of the equity shares of Thorin Co and is the
largest shareholder. It is able to control the board of directors. At the
same time, Bilbo Co has an agreement with another shareholder, Legolas
Co who holds 10% of the shares of Thorin Co whereby it will vote in
agreement with Bilbo Co. Can Bilbo Co exercise control over Thorin Co?
24. How should non-controlling interest be disclosed in the consolidated
statement of financial position?

12. 5/24/2021 Quiz 2 PAF3063
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(a) Neither statement
(b) Statement 2 only
(c) Both statements
(d) Statement 1 only
This form was created inside of Universiti Pendidikan Sultan Idris.
25. The following segments allegedly refer to the identifications of
operating segments for the purposes of segmental disclosures. 1) An
operating segment is a component of an entity whose results are
regularly reviewed by the chief operating decision maker in the entity. 2)
The chief operating decision maker can be more than one person
operating as a group. Which of the statements are true?
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