FR -IAS-1

XYZ has decided to change its reporting date, which will result in a 15-month reporting period.

Which TWO of the following items must be disclosed in accordance with IAS 1 Presentation of Financial Statements?

• The reason for the change

• 1. A statement that similar companies have also changed their accounting period

• 1. A statement that comparative amounts used in the financial statements are not entirely comparable

• 1. Whether the change is just for the current period or for the foreseeable future

During the year ended 31 March 20X7 Woolf sold a property for $1,550,000. The property was purchased for $100,000 and had been revalued to $1.9m on 31 March 20X4; at this date the property had a remaining life of 10 years. Woolf depreciates properties on a straight-line basis over the assets’ useful life, with a full year’s depreciation in the year of acquisition and none in the year of disposal.

Woolf revalued another property to $2m on 31 March 20X7. Its historical cost was $1m and accumulated depreciation on the property was $350,000.

Match the amounts to be recognised in profit or loss and other comprehensive income for these transactions at 31 March 20X7.

• (1) Profit or loss-$30,000
  (2) Other comprehensive income-$1,350,000

• Profit or loss-$30,100
  Other comprehensive income-$1,340,000

• Profit or loss-$20,000
  Other comprehensive income-$1,360,000

• Profit or loss-$40,000
  Other comprehensive income-$1,370,000

Bell made a profit of $183,000 for the year ended 30 June 20X7 and paid a dividend during the year of $18,000. During the year the company wrote off development costs of $45,000 directly to retained earnings as a prior period adjustment and revalued a property with a carrying amount of $60,000 to $135,000.

What was total comprehensive income for period ended 30 June 20X7?

• $257,000

• $258,000

• $278,000

• $358,000

DT’s final dividend for the year ended 31 October 20X5 of $150,000 was declared on 1 February 20X6 and paid in cash on 1 April 20X6. The financial statements were approved on 31 March 20X6.

Which TWO of the following statements reflect the correct treatment of the dividend in the financial statements of DT?

2. The dividend is shown as an accrued liability in the statement of financial position as at 31 October 20X6

3. The $150,000 dividend was shown in the notes to the financial statements at 31 October 20X5

4. The dividend is shown as a deduction in the statement of changes in equity for the year ended 31 October 20X6

• 1. The payment settles an accrued liability in the statement of financial position as at 31 October 20X5

• 1. The dividend is shown as a deduction in the statement of profit or loss for the year ended 31 October 20X6

• 1. The dividend is shown as an accrued liability in the statement of financial position as at 31 October 20X6

• 1. The $150,000 dividend was shown in the notes to the financial statements at 31 October 20X5

• 1. The dividend is shown as a deduction in the statement of changes in equity for the year ended 31 October 20X6

Which of the following items must be disclosed in the notes to the financial statements?

1. (1) Useful lives of assets or depreciation rates used

2. (2) Increases in asset values as a result of revaluations in the period

3. (3) Depreciation expense for the period

4. (4) Reconciliation of carrying amounts of non-current assets at the beginning and end of period

• 1. 1, 2, 3 and 4

• 1. 1 and 2 only

• 1. 1 and 3 only

• 1. 2, 3 and 4 only