Instituto Superior de Contabilidade e Auditoria de Moçambique

Cursos: CA, CF e CPA

Disciplina: Contabilidade Financeira II 2o Ano / 1º Semestre 2020

Ficha de Trabalho Nº 4

1. Os investimentos financeiros podem assumir várias formas, tais como as participações de

capital. O principal objectivo da sua detenção é, normalmente:
a) Obter mais-valias no período de aquisição.
b) Controlar ou exercer uma influência significativa sobre as políticas financeiras e
operacionais das empresas onde se investe, para responder a necessidades de
crescimento da quota de mercado, obter especiais vantagens da sua ligação com
outras entidades do mesmo ou distinto sector, obter rendi- mentos financeiros,
entre muitas outras.
c) Obter rendimentos financeiros no período de aquisição.
d) Nenhuma das anteriores.

2. Investimentos em outras empresas compreendem os investimentos em empresas nas

quais a entidade não tem controlo ou influência significativa e que não representam
subsidiárias, associadas ou entidades conjuntamente controladas.

a) Todas as afirmações são verdadeiras.

b) As afirmações 1 e 4 são alsas e as afirmações 2 e 3 são verdadeiras.
c) As afirmações 1, 2 e 3 são verdadeiras e a afirmação 4 é falsa.
d) Todas as affirmações são falsas.

3. Quando as partes de capital em outras entidades, com cotações divulgadas publicamente,

são mensuradas fiusto valor por contrapartida em resultados:
a) O custo de aquisição deve incluir os custos de transacção na mensuração inicial
desse activo financeiro.
b) O custo de aquisição não deve incluir os custos de transacção na mensuração
inicial desse activo financeiro.
c) O custo de aquisição só deve incluir os custos de transacção na mensuração inicial
desse activo financeiro, se o justo valor puder ser determinado com fiabilidade.
d) Nenhuma das anteriores.

4. Que factores devem ser ponderados para avaliar se um investimento financeiro está em
imparidade?
a) Alterações significativas no ambiente tecnológico onde a participada opera.
b) Alterações significativas no mercado onde a participada opera, que conduzem a
fortes restrições no consumo dos bens/serviços que aquela produz.

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 c) Alterações legais condicionadoras da actividade da participada, conduzindo a
fortes quebras das vendas da entidade.
d) Todas as anteriores.

5. Qual das seguintes afirmações está correcta?

a) Na conta 314 - investimentos financeiros – Outros investimentos financeiros,
quando a participação adquirida é registada pelo método do custo, o custo de
aquisição não pode ser alterado.
b) Na conta 311 - investimentos financeiros - Investimentos em subsidiárias, quando
a participa adquirida é registada pelo MEP, o custo de aquisição nunca é
aumentado.
c) Na conta 313 - Investimentos financeiros - investimentos em entidades
conjuntamente controladas quando a participação adquirida é registada pelo
método da consolidação proporcional, o custo aquisição nunca é aumentado.
d) Nenhuma das anteriores.

True/False Questions

6. When available-for-sale securities are sold, the amount of unrealized holding gain or loss
realized from the date of purchase is included in before-tax net income.

7. Companies must always use the equity method when they hold between 25% and 50%
of the common stock of an investee.

8. The equity method is in many ways a partial consolidation.

9. Under the equity method of accounting for a stock investment, cash dividends received
are considered a reduction of the investee's net assets.

10. The fair value option cannot be elected for significant-influence investments because
those must be accounted for under the equity method.

11. Under IFRS No. 9, debt investments are classified as either “amortized cost,” or “fair value
through profit and loss (FVPL),” or “fair value through other comprehensive income
(FVOCI).”

12. Under IFRS No. 9, a debt investment can be accounted for at amortized cost if the debt
agreement includes only interest and principal and the investor intends to hold it to
collect contractual cash flows.

Multiple Choice Questions

13. Which category of securities is presented on the balance sheet at amortized

cost?
a. Securities available for sale.
b. Equity investments of less than 20 percent ownership.
c. Held-to-maturity securities.

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 d. Trading securities.

14. In 2016, Osgood Corporation purchased $4 million of 10-year municipal bonds at face
value. On December 31, 2018, the bonds had a fair value of $3,600,000 and Osgood
reclassified the bonds from held to maturity to trading securities. Osgood's December
31, 2018, balance sheet and the 2018 income statement would show the following:
Income
Investment in statement loss
municipal on
bonds investments
a. 3,600,000 0
b. 3,600,000 400,000
c. 4,000,000 400,000
d. 4,000,000 0

Use the following to answer questions 15–17:

Beresford Inc. purchased several investments in debt securities during 2018, its first year of
operations. The following information pertains to these securities. The fluctuations in their
fair values are not considered permanent.

Fair Fair Amortized Amortized

Value Value Cost Cost
Held to Maturity 12/31/2017 12/31/2018 12/31/2017 12/31/2018
Securities:
ABC Co. Bonds $375,000 $400,000 $367,500 $360,000

Fair Value Fair Value

Trading Securities: 12/31/2017 12/31/2018 Cost
DEF Co. Bonds $48,000 $59,500 $66,000
GEH Inc. Bonds $47,000 $77,000 $39,000
IJK Inc. Bonds $44,000 $38,500 $32,900

Fair Value Fair Value

Available for Sale 12/31/2017 12/31/2018 Cost
Securities:
LMN Co. Bonds $130,500 $150,400 $140,000

15. What balance sheet amount would Beresford report for the total of its investments in
debt securities at 12/31/2017?
a. $637,000.
b. $644,500.
c. $645,400.
d. None of these answer choices are correct.

16. What would be the balance in Beresford’s accumulated other comprehensive income
with respect to these investments in its 12/31/2019 balance sheet (ignore taxes)?

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 a. $55,100.
b. $26,500.
c. $10,400.
d. None of these answer choices are correct.

17. What total unrealized holding gain would Beresford report in its 2019 income statement
relative to its investments in debt securities?
a. $55,900.
b. $36,000.
c. $80,900.
d. $48,200.

18. If Dizbert Company concluded that an investment originally classified as available for
sale would now more appropriately be classified as held to maturity, Dizbert would:
a. Not reclassify the investment, as original classifications are irrevocable.
b. Reclassify the investment as held to maturity and immediately recognize in net
income any unrealized holding gain or loss on the reclassification date.
c. Reclassify the investment as held to maturity and treat the fair value as of the
date of reclassification as the investment’s amortized cost basis for future
amortization.
d. Need to restate earnings, as the original classification was in error.

19. The equity method of accounting for investments in voting common stock is
appropriate when:
a. The investor can significantly influence the investee.
b. The investor has voting control over the investee.
c. The investor intends to hold the common stock indefinitely.
d. The investor is assured of a continued supply of a valuable raw material.

Problems

20. On March 1, 2018, Navy Corporation used excess cash to purchase U.S. Treasury bonds
for $103,000 plus accrued interest. The bonds were purchased at face value. The
appropriate interest rate is 6%. Interest on these bonds is payable on January 1 and July
1 of each year. Navy’s investment is accounted for as held to maturity. The fair value of
the Treasury bonds is $104,000 at year-end.

Required:
Prepare the appropriate journal entries to record the transactions for the year,
including any year-end adjustments. Show calculations, rounded to the nearest
dollar.

21. On January 1, 2018, Wildcat Company purchased $93,000 of 10% bonds at face value.
The bonds are to be held to maturity. The bonds pay interest semiannually on January 1
and July 1.

Required:

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 (1.) Prepare the appropriate journal entry to record the acquisition of the bonds.
(2.) Record the first two interest payments (ignore year-end accruals).

22. On January 1, 2018, Hoosier Company purchased $930,000 of 10% bonds at face value.
The bond market value was $980,000 on December 31, 2018.

Required:
Prepare the appropriate journal entry on December 31, 2018, to properly value the
bonds assuming the bonds are classified as:
(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities.

23. Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018.
Sonny recognized a total of $400,000 net income during 2018, paid $30,000 of dividends
to Fredo during 2018, and at December 31, 2018, the market value of the Sonny
investment increased to $1,040,000.

Required: Prepare the journal entries necessary to account for the Sonny
investment, assuming that Fredo (1) lacks significant influence or (2) has significant
influence over the operating and financial policies of the investee.

24. On January 1, 2018, American Corporation purchased 25% of the outstanding voting
shares of Short Supplies common stock for $210,000 cash. On that date, Short's book
value and fair value were both $840,000. The equity method is deemed appropriate for
this investment. Short's net income reported on December 31, 2018, was $80,000.
During 2018, Short also paid cash dividends in the amount of $24,000.

Required:
Prepare the journal entries necessary to record the above information on American
Corporation's books during 2018.