New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
applying ifrs standards
Applying IFRS Standards 4th Edition Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas - Solutions
5 understand how to measure the fair value of liabilities
4 explain the steps in determining the fair value of non-fi nancial assets
3 understand the key concepts used in the fair value framework
2 understand the key characteristics of the term ‘fair value’
1 explain the need for an accounting standard on fair value measurement
Exercise 2.9 ★ ★ ★ DIVIDENDS, SHARE-ISSUES, OPTIONS, RESERVE TRANSFERS Mercury plc’s equity as at 30 June 2016 was as follows: 120 000 ordinary ‘A’ shares, issued at £1.10, fully paid 150 000 ordinary ‘B’ shares, issued at £1.20, called to 70p 100 000 8% cumulative preference
Exercise 2.8 ★ ★ ★ DIVIDENDS, SHARE ISSUES, SHARE BUY-BACKS, OPTIONS AND MOVEMENTS IN RESERVES Hide Ltd, a company whose principal interests are in the manufacture of fi ne leather shoes and handbags, was formed on 1 January 2013. Prior to the 2016 period, Hide Ltd had issued 110 000
Exercise 2.7 ★ ★ ★ SHARES, OPTIONS, DIVIDENDS AND RESERVE TRANSFERS The equity of Mondegreen Inc. at 30 June 2015 consisted of: 400 000 ordinary ‘A’ shares issued at $2.00, fully paid 300 000 ordinary ‘B’ shares issued at $2.00, called to $1.20 50 000 6% non-cumulative preference
Exercise 2.6 ★ ★ BUY-BACK OF SHARES Victor Ltd decided to repurchase 10% of its ordinary shares under a buy-back scheme for £5.60 per share. At the date of the buy-back, the equity of Victor Ltd consisted of:Share capital — 4 million shares fully paid General reserve Retained earnings £4
Exercise 2.5 ★ ★ SHARE ISSUE, OPTIONS On 30 June 2015, the equity accounts of Boron Ltd consisted of: 175 000 ‘A’ ordinary shares, issued at $2.50 each, fully paid 50 000 6% cumulative preference shares, issued at $3 and paid to $2 Options (20 000 at 56c each) Accumulated losses $437 500
Exercise 2.4 ★ ★ ISSUE OF ORDINARY AND PREFERENCE SHARES Prepare journal entries to record the following transactions for Kahuna Ltd: 2016 April 1 A prospectus was issued inviting applications for 100 000 ordinary shares at an issue price of €1.50, fully payable on application. The prospectus
Exercise 2.3 ★ SHARE ISSUE, OPTIONS Jordan Ltd has the following shareholders’ equity at 1 January 2016: Share capital — 500 000 shares Asset revaluation surplus Retained earnings £1 240 000 350 000 110 000 On 1 March the company decided to make a public share issue to raise £600 000 for
Exercise 2.2 ★ RIGHTS ISSUE Property Ltd had share capital of 1 million $1 shares, fully paid. As it needed fi nance for certain construction projects, the company’s management decided to make a non-tradeable rights issue to existing shareholders of 200 000 new shares at an issue price of $5
Exercise 2.1 ★ RESERVES AND DIVIDENDS Prepare journal entries to record the following unrelated transactions of a public company: (a) payment of interim dividend of €30 000 (b) transfer of €52 000 from the asset revaluation surplus to the general reserve (c) transfer of €34 000 from the
10. For what reasons may a company make an appropriation of its retained earnings?
9. Discuss whether it is necessary to distinguish between the different components of equity rather than just having a single number for shareholders’ equity.
8. What is a private placement of shares? Outline its advantages and disadvantages.
7. What is a rights issue? Distinguish between a tradeable and a non-tradeable issue.
6. A company has a share capital consisting of 100 000 shares having a par value of $1 per share and issued at a premium of $1 per share, and 50 000 shares issued at $2 par and $1 premium. Discuss the effects on the accounts if: (a) the company buys back 20 000 shares at $4 per share (b) the
5. A company has a share capital consisting of 100 000 shares issued at $2 per share, and 50 000 shares issued at $3 per share. Discuss the effects on the accounts if: (a) the company buys back 20 000 shares at $4 per share (b) the company buys back 20 000 shares at $2.50 per share.
4. Why would a company wish to buy back its own shares? Discuss.
3. The telecommunications industry in a particular country has been a part of the public sector. As a part of its privatisation agenda, the government decided to establish a limited liability company called Telecom Plus, with the issue of 10 million $3 shares. These shares were to be offered to the
2. A company announces a fi nal dividend at the end of the fi nancial year. Discuss whether a dividend payable should be recognised.
1. Discuss the nature of a reserve. How do reserves differ from the other main components of equity?
9 prepare note disclosures in relation to equity, as well as a statement of changes in equity.
8 outline the nature of reserves and account for movements in retained earnings, including dividends
7 discuss the rationale behind and accounting treatment of share buy-backs
6 account for share placements, rights issues, options, and bonus issues
5 account for the issue of both no-par and par value shares
4 discuss the different forms of share capital
3 outline the key features of the corporate structure
2 describe in general terms what a for-profi t company is
1 describe the essence of the equity section in the statement of fi nancial position
Exercise 1.8 ★ ASSET DEFINITION AND RECOGNITION On 28 May 2013, $20 000 cash was stolen from Ming Lee Ltd’s night safe. Explain how Ming Lee should account for this event, justifying your answer by reference to relevant Conceptual Framework defi nitions and recognition criteria.
Exercise 1.7 ★ ASSETS Lampeter Cosmetics has spent $220 000 this year on a project to develop a new range of chemical-free cosmetics. As yet, it is too early for Lampeter Cosmetics’ management to be able to predict whether this project will prove to be commercially successful. Explain whether
Exercise 1.6 ★ DEFINITIONS OF ELEMENTS AND RECOGNITION CRITERIA Explain how you would account for the following items/situations, justifying your answer by reference to the Conceptual Framework’s defi nitions and recognition criteria: (a) A trinket of sentimental value only. (b) You are
Exercise 1.5 ★ PURCHASE ORDERS An airline places a non-cancellable order for a new aeroplane with one of the major commercial aircraft manufacturers at a fi xed price, with delivery in 30 months and payment in full to be made on delivery. (a) Under the Conceptual Framework, do you think the
Exercise 1.4 ★ ASSESSING PROBABILITIES IN ACCOUNTING RECOGNITION The Conceptual Framework defi nes an asset as a resource from which future economic benefi ts are expected to fl ow. ‘Expected’ means it is not certain, and involves some degree of probability. At the same time the Conceptual
Exercise 1.3 ★ NEED FOR THE CONCEPTUAL FRAMEWORK VS. INTERPRETATIONS Applying the Conceptual Framework is subjective and requires judgement. Would the IASB be better off to abandon the Conceptual Framework entirely and instead rely on a very active interpretations committee that develops detailed
Exercise 1.2 ★ RECOGNISING A LOSS FROM A LAWSUIT The law in your community requires store owners to shovel snow and ice from the pavement in front of their shops. You failed to do that, and a pedestrian slipped and fell, resulting in serious and costly injury. The pedestrian has sued you. Your
Exercise 1.1 ★ MEASURING INVENTORIES OF GOLD AND SILVER IAS 2 Inventories allows producers of gold and silver to measure inventories of these commodities at selling price even before they have sold them, which means a profi t is recognised at production. In nearly all other industries, however,
8. Distinguish between the fi nancial and physical concepts of capital and their implications for the measurement of profi t.
7. Discuss the difference, if any, between income, revenue and gains.
6. Discuss the essential characteristics of a liability as described in the Conceptual Framework.
5. Discuss the essential characteristics of an asset as described in the Conceptual Framework.
4. Discuss the importance of the going concern assumption to the practice of accounting.
3. Outline the fundamental qualitative characteristics of fi nancial reporting information to be considered when preparing general purpose fi nancial statements.
2. Identify the potential benefi ts of a globally accepted set of accounting standards.
1. Describe the standard-setting process of the IASB.
7 distinguish between alternative bases for measuring the elements of fi nancial statements 8 outline concepts of capital.
6 explain the principles for recognising the elements of fi nancial statements
5 defi ne the basic elements in fi nancial statements — assets, liabilities, equity, income and expenses
4 discuss the going concern assumption underlying the preparation of fi nancial statements
3 explain the qualitative characteristics that make information in fi nancial statements useful
2 describe the purpose of a conceptual framework — who uses it and why
1 describe the organisational structure of the key players in setting International Financial Reporting Standards (IFRS® Standards)
Showing 500 - 600
of 556
1
2
3
4
5
6
Step by Step Answers
Get 50% OFF
Claim Now
