In a normal CGU impairment - what gets impaired first?

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

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)?

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

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

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

The maximum maturity of a cash equivalent is:

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."

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.

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 continue capitalising the borrowing costs?

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

AAC Ltd. has a piece of equipment with a book value of $200 million on December 31, 20X1. The remaining useful life of the equipment is 5 years and the estimated residual value is $10 million. The estimated net cash flow from the use of the equipment over the next five years is $182 million. The market price of this equipment as of December 31, 20X1 is $205 million with costs of disposal of $25 million. In accordance with IAS 36 - Impairment of Assets, what is the impairment loss related to this equipment?

Interest expense accrued but included in taxable profit on a cash basis should be classified under deductible permanent differences.

Which of the following should be a provision under IAS 37 Provisions, contingent liabilities and contingent assets?

Which of the following is NOT within the scope of IAS 37 Provisions, contingent liabilities and contingent assets?

The financial statements of the Farren Company for the year ended 31 December 20X8 included a provision for restructuring of CU7 million. At 31 December 20X9, CU2 million of the restructuring provision was no longer required. An additional provision of CU2 million was needed for legal claims against the company. "CU2 million of the restructuring provision no longer required is to be re-allocated to cover the legal claims." Is the proposed treatment of the provision shown above correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets?

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

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

Is a footballer's contract an intangible asset?

Do you provide for next years losses under a contract?

When does an impairment occur?

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

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

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?

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?

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."

According to IAS 1 Presentation of financial statements, the notes within the financial statements contain information in addition to that presented in which two of the following?

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

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

Under IAS 36, reversal of impairment loss is allowed if

Interest expense accrued but included in taxable profit on a cash basis should be classified under taxable permanent differences.

Expense accrued and had been included in taxable profit resulted in deferred tax asset.

According to IAS 37 Provisions, contingent liabilities and contingent assets, which of the following is the source of a constructive obligation?

Which of the following should be a provision under IAS 37 Provisions, contingent liabilities and contingent assets?

The financial statements of the Farren Company for the year ended 31 December 20X8 included an environmental provision of CU3 million. At 31 December 20X9, the environmental provision was no longer required. Is the proposed treatment of the provision shown below correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets? "The environmental provision is to be written back to profit or loss."

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?

Let's say you need 100,000 to build a house in 8 months but you're going to use general current borrowings to fund yourself rather than getting a specific loan. Your current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance. What borrowing costs should be capitalised?

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?

How much is Goodwill?

Non Current Assets.  1,300

Current Assets.           600

Share Capital.              100

Share Premium.           100

Reserves.                      1,100

Current Liabilities.         100

Non Current Liabilities   500

S was bought out for 1,500. The FV of S's net assets was 100 more than the book values.

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?

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

A college acquires new technology that will revolutionise its teaching. It is software for a robot that reads aloud from the textbook (you may have seen one of these before!). The costs are:

Original cost of the software.    1,000

Discount provided.                       200

Staff training incurred in operating the robot.                                       400

Testing of the software.                 100

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

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 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?

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

Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property ? "Transfer from investment property to an IAS 16, property must be made at the FV of the investment property at the date of the transfer."

Is the following statement about the valuation of inventory is TRUE OR FALSE? Inventory should be valued at the lowest of cost, net realisable value and replacement cost.

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

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

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

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

Where accumulated depreciation on an asset is less than accumulated tax depreciation, the amount should be classified under deductible permanent differences.

Where accumulated depreciation on an asset is less than accumulated tax depreciation, the amount should be classified under taxable permanent differences.

Where accumulated depreciation on an asset is less than accumulated tax depreciation, deferred tax asset incurs.

Which of the following should be a provision under IAS 37 Provisions, contingent liabilities and contingent assets?

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

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

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?

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

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?

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

Which is the 4th step in revenue recognition process?

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

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?

Is the following statement true or false, according to IAS 38 Intangible assets? "Expenditure during the development phase of a project may sometimes be capitalised as an intangible asset."

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

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

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?

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

Under IAS 36, reversal of impairment loss is allowed if

AAC Real Estate purchased a piece of land in Chicago for $12 million in 20X1 and decided to hold the property with the intention of capital appreciation. The company applies the fair value model. At the end of 20X2, real estate prices in Chicago dropped sharply. Therefore, the fair value of the land was only $10 million. At the end of 20X3, real estate prices showed signs of recovery and the fair value of the land was $11.2 million. What is the accounting treatment for the increase in fair value of the land at the end of 20X3?

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

The financial statements of the Farren Company for the year ended 31 December 20X8 included a provision for restructuring of CU7 million. At 31 December 20X9, CU2 million of the restructuring provision was no longer required. An additional provision of CU2 million was needed for legal claims against the company. "CU2 million of the restructuring provision no longer required is to be re-allocated to cover the legal claims." Is the proposed treatment of the provision shown above correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets?

The financial statements of the Farren Company for the year ended 31 December 20X8 included an environmental provision of CU3 million. At 31 December 20X9, the environmental provision was no longer required. Is the proposed treatment of the provision shown below correct or incorrect according to IAS 37 Provisions, contingent liabilities and contingent assets? “The environmental provision is not allowed to be written back to profit or loss.”

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

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?

A contract performed but not paid would be

Which would lead to more consistent accounting standards?

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:

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

The maximum maturity of a cash equivalent is:

According to IAS 12 Income taxes, is the following statement in relation to deferred tax liabilities true or false? "Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences."

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."

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?

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?

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?

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

Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of taxable permanent differences.

Where accumulated depreciation on an asset is less than accumulated tax depreciation, the amount should be classified under deductible permanent differences.

Where accumulated depreciation on an asset is greater than accumulated tax depreciation, deferred tax liability incurs.

Which of the following is within the scope of IAS 37 Provisions, contingent liabilities and contingent assets?

How do you deal with contingent consideration?

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

Let's say you need 100,000 to build a house in 8 months but you're going to use general current borrowings to fund yourself rather than getting a specific loan. Your current borrowings are: 1 million of 10% loan finance and 2 million of 6% loan finance. What borrowing costs should be capitalised?

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?

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

Is a footballer's contract an intangible asset?

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

Which of the following is NOT an intangible asset?

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 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?

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

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.

According to IAS 1 Presentation of financial statements, the notes within the financial statements contain information in addition to that presented in which two of the following?

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?

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?

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

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

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

Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of deductible permanent differences.

Which of the following should be a provision under IAS 37 Provisions, contingent liabilities and contingent assets?

Which is an indicator of impairment

How do you deal with contingent consideration?

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

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?

How much is Goodwill?

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

Which of the following is NOT an intangible asset?

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?

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