In a normal CGU impairment - what gets impaired first?

Your company owns 40% of another company - You have an arrangement with another investor who owns 20% that he will vote in line with you - is that company your subsidiary?

What type of goodwill is shown in the SFP as an asset?

P acquires S for the following amounts: 1) Cash 400; 2) Future payment of 1,000 in 2 years time (discount rate 10%); 3) A possible future payment of 1,000 if S’s profits increase by 10% each year (FV of this is 400). How much is the investment in S (the consideration figure in the goodwill calculation)?

Is a footballer's contract an intangible asset?

What should be capitalised as the cost of this intangible asset?

What is the minimum requirement for the number of parts of an asset that should be identified?

If an IFRS disagrees with the conceptual framework - then what should be followed?

A cash flow statement provides information that enables users to evaluate the changes in:

Is the following statement in relation to a contingent liability true or false, according to IAS 37 Provisions, contingent liabilities and contingent assets? “A present obligation that arises from past events but cannot be reliably measured is a contingent liability.”

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? “An investment property is initially measured at cost, including transaction costs.”

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? “A gain or loss arising from a change in the fair value of an investment property should be recognised in the revaluation surplus.”

Which one of the following is the best description of faithful representation' in relation to information in financial statements?

The personal transactions of the business owner that do not involve the business are not recorded in the books of accounts of the business. This relates to the concept of:

Under this concept, the life of the business is divided into series of reporting periods.

According to IAS 02 - Inventories, which of the following should be included in the cost of an inventory?

On 1 April 2021, ABC company held non-current assets with cost of $400,000 and accumulated depreciation of $100,000 at this date. During the year ended 31 March 2022, ABC disposed non-current assets which had originally cost of $80,000 and carrying amount of $50,000. The company’s policy is to charge depreciation of 20% on the reducing balance basis, with no depreciation charged in the year of disposal. What is the depreciation charge to the statement of profit or loss for the year ended 31 March 2022?

A machine was purchased on 1 Jan 2020 for $9,600 and depreciated by 20% per annum using the reducing balance method. On 1 Jan 2023, it was sold for $4,800. What was the gain (or loss) on disposal of the machine that would be reported in the statement of profit or loss?

The Oakes Company has a loan due for repayment in six months' time, but Oakes has the option to refinance for repayment two years later. Oakes plans to refinance this loan. In which section of its statement of financial position should this loan be presented, according to IAS 1 Presentation of financial statements?

Which is an indicator of impairment

How do you deal with contingent consideration?

A company bought an asset for 2,000 (10 year useful life) After 5 years it is impaired to 800. What is the double entry?

The purpose of the Conceptual Framework is to assist in determining the treatment of items NOT covered by IFRS. Is this statement true or false?

Do you provide for an obligated future cost?

What are the limitations to Faithful Representation?

Which of the following is NOT an intangible asset?

Is the screen of the device you're using right now - a cash CGU?

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

How shall an entity recognise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset?

“If an investment property is held at fair value, this must be applied to all of the entity's investment properties.”

“Intangible assets with a finite useful life should be measured at cost and tested annually for impairment.”

Which of the following is not included as part of the definition of control under IFRS 10 Consolidated Financial Statements?

This qualitative characteristic requires at least two items.

On 1 August 20X7 Patronic purchased 18 million of the 24 million CU 1 equity shares of Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. The market price of a share in Patronic at 1 August 20X7 was CU5.75. Patronic will also pay in cash on 31 July 20X9 (two years after acquisition) CU2.42 per acquired share of Sardonic. Patronic's cost of capital is 10% per annum. What is the amount of the consideration attributable to Patronic for the acquisition of Sardonic?

A company had a provision of $10,000 in its financial statements for the year ended 31 March 2021 in respect of a legal claim. In July 2022 the claim was settled at a cost of $13,000. What is the expense in respect of the legal claim included in the company’s statement of profit or loss for the year ended 31 March 2022?

If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment Property, when may it do so?

A company has a legal obligation to remove an asset after it has finished with it in 8 years time. How is this dealt with in the accounts?

When does an impairment occur?

Contract assets and receivables shall be accounted for in accordance with

A 30% Associate - carrying value in the SFP = 1,000. The recoverable amount of the associate is 2,000. Has there been an impairment?

For an investment to qualify as a cash equivalent, it must be:

Capitalised development expenditure must be amortised over a period not exceeding 5 years. The above statement is TRUE OR FALSE?

When does amortisation of an intangible asset commence?

If goodwill is calculated using FV method where is the impairment shown in your workings?

Which would lead to more consistent accounting standards?

What is the minimum requirement for the number of parts of an asset that should be identified?

An overprovision of tax in the previous year is shown in this years trial balance as

The carrying amount of property, plant and equipment was $410 million at 31 March 2011 and $ 680 million at 31 March 2012. During the year, property with a carrying amount of $ 210 million was revalued to $290 million. The depreciation charge for the year was $115 million. There were no disposals. What amount will appear on the statement of cash flows for the year ended 31 March 2012 in respect of purchases of property, plant and equipment?

Should the following cost be included in the consideration transferred in a business combination, according to IFRS 3 Business combinations? Fees paid to accountants to affect the combination

Is the following statement true or false, according to IAS 2 Inventories? “Maintenance expenses for an item of equipment used in the manufacturing process should be included in the cost of inventories.”

Is the following statement about the valuation of inventory is TRUE or FALSE? “A company's financial statements must disclose the accounting policies used in measuring inventories.”

According to IAS 1 Presentation of financial statements, which two of the following must be included in an entity's statement of financial position?

According to IAS 28 Investments in Associates and Joint Ventures, which one of the following statements best describes the term ‘significant influence’?

The usefulness of information is assessed in terms of its …

Spring Co spent $5,000 on a patent for the new technique on 31 March 20X7. The company capitalized it as an intangible asset in the financial statements. Spring Co expected to use the patent for 5 years. According to IAS 38, which one of the following journal entries is correct to record the amount of the parent amortized for the year ended 31 March 20X8?

Specific identification method, first in – first out (FIFO) and average cost (AVCO) are inventory valuation methods. Which of the following statements is correct?

Control means rights to the variability of returns and also..

A contract performed but not paid would be

Which would lead to more comparable financial statements between companies..?

With regard to the definition of revenue given by IFRS15, which of the following statements is true?

The acquisition, and disposal, of long-term assets are:

The maximum maturity of a cash equivalent is:

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?

Intangible asset with infinite useful life must be amortized. The above statement is TRUE OR FALSE?

On 1 August 20X7 Patronic purchased 18 million of the 24 million CU 1 equity shares of Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. The market price of a share in Patronic at 1 August 20X7 was CU5.75. Patronic will also pay in cash on 31 July 20X9 (two years after acquisition) CU2.42 per acquired share of Sardonic. Patronic's cost of capital is 10% per annum. What is the amount of the consideration attributable to Patronic for the acquisition of Sardonic?

A business buys a machine on 1 January 2019 for $10,000 and depreciates it at 10% per annum straight line. At the end of 2020 the machine's remaining useful life is reassessed at six years remaining and it is now believed that the machine has a residual value of $500. What is the depreciation charge for the third year of the machine's use?

When a constructing office is almost complete; the only remaining work is to install furniture, should the entity continue capitalising the borrowing costs?

P buys 70% S for 800. The FV of S’s Net assets were 1,000. The proportionate method of calculating NCI at acquisition is used. How much is goodwill?

Is this an Investment Property? A chic, sleek, cutting edge technology building used for training accountants but no longer required as students just made the place a bit cluttered and smelly - so we have decided to sell it?

A delivery Van of ABC plc has damaged badly due to an accident in highway. The cost of repair will be $700. What type of expenditure is it?

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

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

Which of the following statements about users of accounting information is incorrect?

Which of the following is not a “qualifying asset” under IAS 23 – Borrowing Costs?

If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment Property, when may it do so?

Which is an indicator of impairment

Your company owns 40% of another company - is that company your subsidiary?

You buy an asset at the start of the year with the following costs: 1) Purchase Price 1,000 2) Legal fees 500 3) Admin costs in negotiating the fee 100 4) Future dismantling cost of 200 in 3 years time Discount rate is 10% How much is the cost of the asset at the start of the year?

Which of the following is not a condition to commence capitalisation of borrowing costs?

Which is the 4th step in revenue recognition process?

Activities that result in changes in the size (and composition) of the equity capital, and borrowings are:

When a constructing office is almost complete; the only remaining work is to install furniture, should the entity continue capitalising the borrowing costs?

This enhancing quality refers to a financial information that is classified, characterized, and presented clearly, and concisely

Under the principles of IAS 16 - Property, Plant and Equipment, which TWO of the following should be included in the cost of an item of property, plant and equipment?

Contract assets and receivables shall be accounted for in accordance with ______

Where do you put a gain or loss on a full disposal? Income statement

Which of the following would NOT be classified as an associate? An entity where you...

A sub has 100 net assets book value and a contingent liability with no book value but a 10 fair value At acquisition what is the value of the sub for the goodwill calculation?

If the agreed date of payment by a customer is later than the date on which goods or services are transferred to that customer, part of the consideration should always be treated as finance income (not revenue). True or False?

Your company owns 40% of another company - You have an arrangement with another investor who owns 20% that he will vote in line with you - is that company your subsidiary?

When a constructing office is almost complete; the only remaining work is to install furniture, should the entity continue capitalising the borrowing costs?

We have decided to build a new cowshed for our students. We've bought the land but not got any planning permission. Is this an Investment Property?