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Wiley IFR S: Practical Implementation Guide and Workbook
(a) 20 million zlotis
(b) 1,200.2 million zlotis
(c) 80 million zlotis
(d) 4,808 million zlotis
Answer: (c)
5. The following "equity" relates to an entity
operating in a hyperinflat ionary economy:
What would be the balances on the revaluation re–
serve and retained earnings after the restatement for
lAS 29?
(a) Revaluation reserve 0, retained earnings
100.
(b) Revaluation reserve 100, retained earnings
O.
(c) Revaluation reserve 20, retained earnings
80.
(d) Revaluation reserve 70, retained earnings
30.
Answe r : (a)
After
Before
!.AS...12.
restatement
MULTIPLE·CHOICE QUESTIONS
1. An entity has several subsidiaries that operate in
a hyperinflationary economy which uses the zloty as
its local currency. Management wishes to show the
financial statements in U.S. dollars. Many of the op–
eration s of the entity are within countries that are not
hyperinflationary, and these subsidiaries use the euro
as their functional currency. What currency should the
entity use to present its consolidated financial state–
ments?
(a) U.S. dollars.
(b) The zloty.
(c) The euro.
(d) The entity may use any currency.
Answer:
(d)
2. An entity has a subsidiary that operates in a
hyperinflat ionary economy. The subsidiary's financial
statements are measured in terms of the local cur–
rency, which is the zloty. The subsidiary' s financial
statements have been restated in accordance with lAS
29. The parent is located in the United States and
prepares the consolidated financial statements in U.S.
dollars. Which of the following accounting proce–
dures is correct in terms of the consolidation of the
subsidiary's financial statements?
(a) The subsidiary' s financial statements should
be prepared using the zloty and then re–
translated into U.S. dollars.
(b) The subsidiary's financial statements should
be prepared using the zloty, then restated ac–
cording to lAS 29, and then retranslated into
U.S. dollars at closing rates.
(c) The subsidiary's financial statements should
be remeasured in U.S. dollars, then restated
according to lAS 29 and consolidated.
(d) The subsidiary' s financia l statements should
be deconsolidated and not included in the
consolidated financial statements.
Answer: (b)
3. An entity is trying to determine which assets and
which liabilities are monetary and nonmonetary.
Which of the following assets or liabilities are non–
monetary ?
(a) Trade receivables.
(b) Deferred tax liabilities.
(c) Accrued expenses and other payables.
(d) Taxes payable.
Answer: (b)
4. Property was purchased on December 31, 20X5,
for 20 million zlotis. The general price index in the
country was 60.1 on that date. On December 31,
20X7, the general price index had risen to 240.4. If
the entity operates in a hyperinflati onary economy,
what would be the carrying amount in the financial
statements of the property after restatement?
Share capital
Revaluation reserve
Retained earnings
100
20
.sn
l.5ll
170