Which one of the following terms best describes assets recorded at the amount that represents the immediate purchase cost of an equivalent asset?

Tynan's year end is 30 September 20X4 and the following potential liabilities have been identified. Which TWO of the above should Tynan recognise as liabilities as at 30 September 20X4?

Mighty IT Co provides hardware, software and IT services to small business customers. Mighty IT Co has developed an accounting software package. The company offers a supply and installation service for $1,000 and a separate two - year technical support service for $500. Alternatively, it also offers a combined goods and services contract which includes both of these elements for $1,200. Payment for the combined contract is due one month after the date of installation. In December 20X5, Mighty IT Co revalued its corporate headquarters. Prior to the revaluation, the carrying amount of the building was $2m and it was revalued to $2.5m. Mighty IT Co also revalued a sales office on the same date. The office had been purchased for $500,000 earlier in the year, but subsequent discovery of defects reduced its value to $400,000. No depreciation had been charged on the sales office and any impairment loss is allowable for tax purposes. Mighty It Co's income tax rate is 30 %. In accordance with IFRS 15 Revenue from Contracts with Customers, when should Mighty IT Co recognize revenue from the combined goods and services contract?

IFRS 15 Revenue from Contracts with Customers states that, where performance obligations are satisfied over time, entities should apply an appropriate method of measuring progress. Which TWO of the following are appropriate OUTPUT methods of measuring progress?

Company X started a three - year contract to build a new university campus on 1 April 20x7. The contract had a fixed price of $100 million. X will satisfy the performance obligation over time. CN incurred costs to 31 March 20X8 of $66 million and estimated that a further $44 million would need to be spent to complete the contract. X measures the progress of contracts using work completed compared to contract price. At 31 March 20X8, a surveyor valued the work completed to date at $60 million. What are the correct amounts to be shown in revenue and cost of sales in the statement of profit or loss for the year ended 31 March 20X8? Revenue Cost of sales

Which of the following statements are correct in accordance with IAS 37 Provisions, contingent liabilities and contingent assets?

1. Provisions should be made for both constructive and legal obligations

2. Discounting may be used when estimating the amount of a provision.

3. A restructuring provision must include the estimated costs of retraining or relocating continuing staff 4. A restructuring provision may only be made when a company has a detailed plan for the restructuring and has communicated to interested parties a firm intention to carry it out.

Which two of the following are examples of deferred tax assets? Deferred tax assets are the amount of income taxes recoverable in future periods in respect of

According to IAS 12 Income taxes, are the following statements in relation to deferred tax liabilities true or false?

1. Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.

2. Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of deductible temporary differences

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

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

Are the following statements regarding the cost of an asset true or false, according to IAS 16 Property, plant and equipment?

1. The cost includes cash equivalents paid to acquire an asset.

2. The cost includes the fair value of any non-monetary consideration given to acquire an asset

M Co sets up his demolition business from scratch on 1 January 20X0. Which items should be represented as capital expenditure?

M Co sets up his demolition business from scratch on 1 January 20X0. Which items should be represented as capital expenditure?

M Co sets up his demolition business from scratch on 1 January 20X0. Which items should be represented as revenue expenditure?

Allblue buys and sells inventory during the month of April as follows:

Which one of the following statements is true when using the FIFO method instead of the periodic weighted average?

Alphabooks is a book wholesaler. On each sale, commission of 4% is payable to the selling agent. The following information is available in respect of total inventories of three of his most popular titles at his financial year-end:

What is the value of these inventories in Alphabooks's statement of financial position?

Winter Co incurred the following cost: 

$86,000 developing new techniques that will be put in place shortly to raise the quantity of product made; 

$57,000 researching a new process to improve the quality of the standard product; and  $10,000 on market research into the commercial viability of a new type of product. According to IAS 38, how much should be charged as research and development expenditure in profit or loss? (Ignore amortisation)

The Conceptual Framework deals with the qualitative characteristics of financial statements. Is this statement true or false?

At the end of the accounting period, NQD Co had the following non-current assets:

Land and buildings at cost $20.8 million

Land and buildings: accumulated depreciation $0.24 million

NQD Co decided to revalue its land and buildings at the year-end to $30 million. What will be the value of the revaluation surplus if the revaluation is accounted for?

Which of the following is NOT shown as intangible non-current assets in financial position of PEN Co at 31 December 20X1?

On 30 June 20X5, an entity bought a machine. The invoice showed that:

Cost of machine: 105,000

Delivery costs: 1,300

Installation costs: 4,000

One-year maintenance contract: 6,500

Staff training cost: 5,000

At what amount should the machine be capitalized in the entity's records?

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?

The Fluming Company and The Talgarth Company own 60% and 40% respectively of the equity of The Hoophorn Company. Fluming and Talgarth have signed an agreement whereby all the strategic decisions in respect of Hoophorn are to be taken with the agreement of them both. Are the following statements true or false, according to relevant IFRSS?

1. Fluming should classify its investment in Hoophorn as an investment in a subsidiary.

2. Talgarth should classify its investment in Hoophorn as an investment in an associat

According to IFRS 16 Leases, which one of the following is not included in the definition of lease payments?

The Kuma Company is being sued for damages. When preparing its 20X5 financial statements the directors took the view that the likelihood of any payments having to be made to the claimant was remote.

In preparing the 20X6 financial statements their view was that it was possible that such payments would have to be made and in preparing the 20X7 statements their view was that such payments were probable.

For the 20X8 statements there was virtual certainty that the payments would have to be made. The payments were made in the 20X8 accounting period.

Under IAS 37 Provisions, contingent liabilities and contingent assets, in which set of financial statements should a contingent liability first be disclosed?

Which one of the following terms best describes financial statements whose basis of accounting recognises transactions and other events when they occur

IAS 16 Property, Plant and Equipment requires an asset to be measured at cost on its original recognition in the financial statements. CARLING used its own staff, assisted by contractors when required, to construct a new warehouse for its own use. Which one is recognized as expense:

When does amortisation of an intangible asset comment?

n December, 2022, $595 return on goods to a supplier, had been incorrectly recorded in the sale returns as $295. How did the error affect the profit for the entity?

Which of the following is not a "qualifying asset" under IAS 23 - Borrowing Costs?

Intangible asset with infinite useful life must be amortized

This qualitative characteristic requires at least two item

Capitalised development expenditure must be amortized over a period not exceeding 5 years

Under IAS 23 Borrowings, which of the following cannot be qualifying asset?

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

The Conceptual Framework deals with the objectives of financial statements

Information becomes more useful if it can be compared with similar information about other entities and with similar information about the entity for another period or another date

According to IAS 23 - Borrowing Costs, Investment Income generated from loans taken in order to finance a qualifying asset should be:

Accorsing to IAS 28 Investments in Associates and Joint ventures, which one of the following statements best describes the term 'significant influence'?

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

Under this accounting principle, a business is not expected to end its operations in the foreseeable future

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 FSs. 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?

The usefulness of information is assessed in terms of its...

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

When a constructing office is almost complete, the only remaining work is to install furniture, should the entity continuecapitalising the borrowing costs

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

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

Capitalisation is suspended if the delays in the development of an asset are

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

A company had a provision of $10,000 in its FSs 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

A company has CU 20 million of capitalised development expenditure at cost brought forward at 1 October 20X7 in respect of products currently in production and a new project began on the same date. The research stage of the new project lasted until 31 Dec 20X7 and incurred CU 1.4 million of costs. From that date the project would be successful and yield a profit well in excess of costs. The project was still in development at 30 Sep 20X8. Capitalised development expenditure is amortised at 20% per annum using the straight line method. What amount will be charged to profit or loss for the year ended 30 Sep 20X8 in respect of research and development costs?

A parent leases an office building to a subsidiary. In which FSs will the property appear as investment property?

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 FSs?

A company issued 50,000 equity shares of $1 each at a premium of $0.5 per share. The cash received was correctly recorded but the full amount was credited to the share capital account. Which of the following journals corrects this error?

A business buys a machine on 1 Jan 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 thirds year of the machine's use?

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

In a normal CGU impairment - what gets impaired first?

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)?

Do you provide for an obligated future cost?

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?

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?

Is a footballer's contract an intangible asset?

Which is the 4th step in revenue recognition process?

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?

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

Do you provide for next years losses under a contract?

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

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

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

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

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

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

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

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

A contract performed but not paid would be

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

Which would lead to more consistent accounting standards?

When does an impairment occur?

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?

The maximum maturity of a cash equivalent is:

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

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?

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

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?

Which is an indicator of impairment

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

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?

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?

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?

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

Which of the following is NOT an intangible asset?

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

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

John & Co sold an item of used machinery at $5000. What will be the effect on financial statements

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

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

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?