All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
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
Ask a Question
Search
Search
Sign In
Register
study help
business
international financial reporting 7th
Questions and Answers of
International Financial Reporting 7th
(a) In relation to property, plant and equipment, define the terms "depreciation", "depreciable amount", "useful life" and "residual value".(b) On 1 July 2019, a company which prepares financial
(a) Define the term "investment property". Explain why it is not generally appropriate to charge depreciation in relation to such a property.(b) Give three examples of properties (land or buildings)
(a) Distinguish between research expenditure and development expenditure.(b) Explain the accounting treatment required by IAS38 in relation to each of these types of expenditure.(c) During the year
A company has purchased the following intangible assets in separate transactions:(a) A patent which expires after ten years; the company expects to make use of this patent for six years and then
On 1 January 2020, A Ltd bought all of the assets and liabilities of B Ltd for a price of £500,000. B Ltd then went into liquidation. The statements of financial position of the two companies just
Determine the recoverable amount of each of the following four assets and state theamount of any impairment loss which should be recognised in each case: Asset 1 Asset 2 Asset 3 Asset
The carrying amounts of the assets of a cash-generating unit are as follows:There are indications that this CGU is impaired and therefore its recoverable amount has been determined. The CGU's
(a) Define the term "goodwill" and distinguish between internally generated goodwill and goodwill acquired in a business combination.(b) Identify the main features of goodwill which distinguish it
Wilbern Ltd prepares financial statements to 30 June each year. On 1 March 2019, the company classifies a non-current asset as held for sale. The asset is eventually sold in July 2019. Calculate:(i)
An asset which cost £200,000 on 1 January 2018 is being depreciated on the straight line basis over a five year period with an estimated residual value of £40,000. The company which owns the asset
There are two international standards which deal with goodwill. IAS38 does not allow internally generated goodwill to be recognized as an asset. Goodwill acquired in a business combination is dealt
Yeng and Sons Ltd prepares financial statements to 31 May each year. On 25 January 2020, the company classifies a disposal group as held for sale. This disposal group is eventually sold in August
An extract from the draft statement of comprehensive income of Andisson Ltd for theyear to 30 April 2020 is as follows:In January 2020, the company sold one of its business operations, incurring a
An asset (which has never been revalued) has a carrying amount of £100,000. The asset is being depreciated on the straight-line basis, with a remaining useful life of three years and a residual
IAS36 Impairment of Assets was issued in June 1998 and subsequently revised in March 2004 and January 2008. Its main objective is to prescribe the procedures that should ensure that an entity's
Stenberg plc is preparing its financial statements for the year ended 30 November 2020. On 1 May 2020, the company purchased a factory for the manufacture of optical disks, paying £24,000,000. The
(a) Explain what is meant by a non-current asset "held for sale" and list the criteria which must be satisfied in order for an asset to be classified as held for sale.(b) Explain why it is not
Varnay Ltd is a manufacturing company which prepares annual financial statements to 31 December. In November 2019, the company announced a plan to close down one of its manufacturing operations and
On 1 January 2019, Glassmere Ltd (which prepares accounts to 31 December) enters into a lease for the use of an asset. Details of the lease agreement are as follows:Glassmere Ltd will obtain legal
Bakewall Ltd prepares annual financial statements to 31 December. On 1 August 2019 the company closed down one of its operations and classified the corresponding cash generating unit (CGU) as held
(a) Define the term "lease" in accordance with IFRS16 Leases and explain what is meant by the inception of a lease and the commencement of a lease.(b) Distinguish between lessors and lessees.(c)
On 1 July 2019, Helvelyn Ltd enters into a lease to acquire use of a machine. The lease agreement specifies that the company will make four lease payments, each of £45,303, on 30 June 2020, 2021,
On 1 January 2019, Crimmock Ltd (which prepares accounts to 31 December) enters into a four-year lease of office machinery. The company is required to make four lease payments of £30,000 and these
On 1 April 2020, Endale Ltd (which prepares accounts to 31 March each year) enters into a lease of computer equipment. The company is required to make six half-yearly lease payments of £7,674 each
On 1 October 2019, Conston Ltd (which prepares accounts to 30 September) leases an asset to a lessee. The lease term is five years and the lessee is required to make lease payments of £27,500 each
(a) Identify the circumstances in which a cost formula may be used to establish the cost of inventories.(b) A company's inventories at 30 April 2020 include 11,000kg of a chemical which is used in
Parrison Ltd is a manufacturing company. The company's inventory at 30 June 2020 includes the following items of work in progress:The company complies with IAS2 Inventories.(a) Define the term
The main activity of J&T Ltd is to buy old vehicles which are sold after converting them into a saleable condition. At 29 February 2020 (the end of the company’s financial year) J&T Ltd had
On 1 January 2020, Lessor plc leases a machine to Lessee Ltd. The lease term is three years and lease payments of £1,000 per month are required. The machine has a useful life of eight years and its
IFRS16 Leases replaces IAS17 Leases for accounting periods beginning on or after 1 January 2019. The main aim of the new standard is to ensure that a lessee's financial statements provide a faithful
A company which makes only one type of product incurs fixed production overheads of £240,000 during the year to 31 March 2020. Normal production capacity is 80,000 units per annum. Calculate the
(a) Define the terms "financial instrument", "financial asset", "financial liability" and "equity instrument".(b) Explain the way in which international standard IAS32 distinguishes between financial
(a) Explain what is meant by a "compound" financial instrument. Also explain the required accounting treatment of such an instrument.(b) On 1 April 2018, a company issues a £500,000 4% convertible
(a) International standard IFRS9 classifies financial assets into three main categories. Identify and explain each of these categories. Also explain the way in which each category of financial asset
(a) Explain the terms "credit risk", "liquidity risk" and "market risk" which are used in international standard IFRS7.(b) Outline the main disclosures required by IFRS7 in relation to each of these
On 1 May 2019, a company which prepares financial statements to 30 April each year issues £750,000 of 3% loan stock at a discount of 5%. Issue costs are £13,175. Interest is payable on 30 April
Hullman Ltd prepares financial statements to 31 March each year. Consider each of the situations and determine in each case whether or not a provision should be recognised in the company's financial
(a) Explain how the amount of a provision should be measured.(b) A company needs to make a provision for the cost of repairing a faulty product supplied to a customer some weeks previously. The
Kenistone Ltd prepares financial statements to 30 April each year. At 30 April 2020, the company is being sued by a customer who claims to have been harmed by one of the company's products. The case
Laidlow plc is a construction contractor which prepares financial statements to 31 May each year. The following information relates to a contract with a customer which began during the year to 31 May
The annual accounting date of Lawston plc is 31 May. The following matters need to be dealt with before the financial statements for the year to 31 May 2020 can be finalised:(a) The company is
A company prepares financial statements to 31 December each year. The following events occurred after 31 December 2019 but before the financial statements for the year to 31 December 2019 were
Triangle, a public listed company, is in the process of preparing its draft financial statements for the year to 31 March 2020. The following matters have been brought to your attention:(i) On 1
(a) Sparkling Pictures plc is a company which specialises in video production. The company is preparing its financial statements for the financial year ended 30 April 2020.During the financial year
Define the term "revenue". Also explain the "five-step model" for the recognition and measurement of revenue which is set out in international standard IFRS15.
A company is contracted to build an asset for a customer. The contract price is £5m but the contract stipulates that the company will receive an incentive payment of a further £1m if the asset is
A company enters into 10,000 contracts with customers, all on the same date. These contracts have very similar characteristics and therefore (as a practical expedient) the company decides to apply
Triangle, a public listed company, is in the process of preparing its draft financial statements for the year to 31 March 2020. On 1 April 2019, Triangle sold maturing inventory that had a carrying
Showing 200 - 300
of 248
1
2
3