1. Which of the following statement(s) pertaining to Joint Ventures is TRUE? a. A joint venture must have a contractual arrangement establishing joint control over the venture. b. It must be accounted for using the Cost Method. c. It must be accounted for using the Equity Method. d. One of the parties of the joint venture must have unilateral control over the venture. Ans: A Difficulty: Easy Level of Learning: Knowledge Topic: LO 2 2. Which of the following does NOT constitute a Business Combination under IFRS 3? a. A Corp purchases the net assets of B Corp. b. A Corp enters into a Joint Venture with B Corp. c. A Corp acquires 51% of B Corp’s voting shares for $1,000,000 in Cash. d. A Corp acquires 51% of B Corp’s voting shares for future considerations. Ans: B Difficulty: Easy Level of Learning: Knowledge Topic: LO 2 3. Which of the following statements is TRUE under IAS 39? a. All unrealized gains and losses on equity investments are flow through Other Comprehensive Income. b. Unrealized gains and losses on held-for-trading securities are included in Other Comprehensive Income. c. Unrealized gains and losses on available-for-sale investments are included in Other Comprehensive Income. d. Other Comprehensive Income is included in Retained Earnings. Ans: C