250-300

What are the limitations to Faithful Representation? (two options)

1. Inherent uncertainties and estimates

2. Assumptions

3. Substance over form

• 1. Inherent uncertainties and estimates

• 1. Assumptions

• 1. Substance over form

Which of the following statements about research and development expenditure are correct according to IAS38 Intangible Assets? (Two options)

• 1. If certain conditions are met, an enterprise may decide to capitalise development expenditure

• 1. Research expenditure, other than capital expenditure on research facilities, must be written off as incurred.

• 1. Capitalised development expenditure must be amortised over a period not exceeding 5 years.

• 1. Capitalised development expenditure must be disclosed in the statement of financial position under intangible non-current assets.

If information is complex should it be included in the accounts?

• 1. Yes if relevant

• 1. No - it limits understandability

Daily sales and purchases, employee costs and general overheads comprise:

• 1. Operating acitivities

• 1. Investing activities

• 1. Financing activities

• 1. Component of cash and cash equivalents

The statement of financial position of Pinto at 31 March 2017 showed property, plant and equipment with a carrying amount of $1,860,000. At 31 March 2018 it had increased to $2,880,000. During the year to 31 March 2018 plant with a carrying amount of $240,000 was sold at a loss of $90,000, depreciation of $280,000 was charged and $100,000 was added to the revaluation surplus in respect of property, plant and equipment. What amount should appear under ‘investing activities’ in the statement of cash flows of Pinto for the year ended 31 March 2018 as cash paid to acquire property, plant and equipment?

• 1. $1,350,000

• 1. $1,640,000

• 1. $1,260,000

• 1. $1,440,000

According to IAS 12 Income taxes, is the following statement in relation to deferred tax liabilities true or false? “Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of deductible temporary differences.”

• True

• False

Which two of the following are included in a complete set of financial statements, according to IAS 1 Presentation of financial statements?

• 1. Summarised statements of financial position for the last five years

• 1. A statement of changes in equity

• 1. A statement of cash flows

• 1. A statement by the board of directors of compliance with local legislation

Recording assets at their acquisition cost (entry value), rather than at their net selling price (exit value), is in line with the principle of

• 1. Consistency

• 1. Historical cost

• 1. Going concern

• 1. Matching

This qualitative characteristic requires at least two items.

• 1. Comparability

• 1. Timeliness

• 1. Verifiability

• 1. Understandability

The Plaice Company acquired a new filing machine, the list price of which was CU49,000. The supplier allowed a trade discount of CU1,700 off the list price. On delivery, the cost of installing the machine in its desired location was CU450. According to IAS 16 Property, plant and equipment, at what cost should the filing machine be measured in the financial statements of Plaice? CU49,000 CU47,750 CU49,450 CU47,300 Câu 45: Cloud obtained a 60% holding in the 100,000 CU1 shares of Mist on 1 January 20X8, when the retained earnings of Mist were CU850,000. Consideration comprised CU250,000 cash, CU400,000 payable on 1 January 20X9 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 20X8 was CU2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 20X8 was estimated to be CU400,000. What was the goodwill arising on acquisition?

• 1. 139,370

• 1. 169,000

• 1. 119,370

• 1. 130,370