Questions and Answers of International Financial Reporting And Analysis

Q: HA acquired 100 per cent of SB’s equity shares on 1 April 20X0 for $185,000. The values of SB’s assets at that date were:On 1 April 20X0, all
Q: On 1 October 20X5, Zanda Co acquired 60 per cent of Medda Co’s equity shares by means of a share exchange of one new share in Zanda Co for every
Q: Extracts from the financial statements of QA and LM for the year ended 31 March 20X4 are presented below.Summarized statement of profit or loss and
Q: Compare the capitals and incomes of all the Activities in this chapter. Consider how they are the same or different and why this is the case.
Q: The statements of financial position for ST and UV as at 31 December 20X4 are provided below:Additional innformation:ST acquired 80 per cent of the
Q: On 1 June 20X2, Premier acquired 80 per cent of the equity share capital of Sanford. The consideration consisted of two elements: a share exchange of
Q: Can you think of an underlying reason why some corporate governance mechanisms work better in insider systems and other corporate governance
Q: The statements of financial position for ER and MR as at 31 December 20X2 are provided below.Additional information: 1. ER acquired 80 per
Q: ER acquired 80 per cent of the 1 million $1 equity shares of MW on 1 January 20X2 when MW’s retained earnings were $1,050,000. The consideration
Q: Extracts from the financial statements of AZ, B and C are presented below.Additional information:1. AZ acquired 80 per cent of the equity share
Q: On 1 January 20X4, Plastik acquired 80 per cent of the equity share capital of Subtrak. The consideration was satisfied by a share exchange of two
Q: On 1 April 20X3 Polestar acquired 75 per cent of the equity share capital of Southstar. Southstar had been experiencing difficult trading conditions
Q: The statements of profit or loss and other comprehensive income and changes in equity for XY and its subsidiary AZ for the year ended 31 December
Q: What is ‘control’ when used in relation to consolidated financial statements?
Q: Construct (using appropriate assumptions) a mixed group structure, bringing together a holding entity, a subsidiary and a sub-subsidiary.
Q: The preparation of consolidated financial statements provides useful information to users. Discuss.
Q: Appraise the need for consolidated accounts.
Q: Extracts from the financial statements of MAT, X and Y are presented below.Additional information:1. MAT acquired 80 per cent of the equity share
Q: On 1 April 20X1, Picant acquired 75 per cent of Sander’s equity shares in a share exchange of three shares in Picant for every two shares in
Q: Define a subsidiary, associate and related party entity.
Q: Identify how a subsidiary, associate and related party will be dealt with in the financial statements of a group.
Q: Joey, a public limited company, operates in the media sector. Joey has investments in two companies. The draft statements of financial position at 30
Q: Frame plc is a company whose functional and presentation currency is the euro. During April 20X7, the company had the following sterling
Q: Coatmin is a government-controlled bank. Coatmin was taken over by the government during the recent financial crisis. Coatmin does not directly trade
Q: At 30 November 20X6, three people own the shares of Suntory. The finance director owns 60 per cent, and the operations director owns 30 per cent. The
Q: Should exchange differences appear in the statement of profit or loss of an entity or be charged direct to a separate component of equity? State the
Q: Extracts from the financial statements of A and its subsidiary B are presented below.Additional information:1. A acquired 80 per cent of the
Q: AB is planning to acquire 100 per cent of the equity of KM, an entity that operates overseas and which currently prepares its financial statements in
Q: RD operates in Country A and has established the A$ as its functional currency. RD acquired a piece of machinery from an overseas supplier at a cost
Q: OVS operates in country G, which has the Grum as its currency. OVS sources all raw materials locally and is subject to local taxes and corporate
Q: ST, UV and WX are listed entities operating in the same business sector. At 31 October 20X6, their PE ratios were reported as follows:ST 16.2 UV
Q: On 1 October 20X3, Penketh acquired 90 million of Sphere’s 150 million $1 equity shares. The acquisition was achieved through a share exchange of
Q: Extracts from the financial statements of AB, CD and EF are presented below.Additional information: 1. AB acquired 80 per cent of the ordinary
Q: Compare what you have read about taxonomies of financial accounting and reporting systems with taxonomies of corporate governance systems. Identify
Q: On 1 April 20X3, Xtol issued a 5 per cent $50 million convertible loan note at par. Interest is payable annually in arrears on 31 March each year.
Q: What is a financial instrument?
Q: How does the IASB differentiate between financial instruments and other assets and liabilities?
Q: Explain the three classifications of financial assets under IFRS 9.
Q: Kappa is an entity that operates in a sector where the recruitment and retention of high quality employees is particularly important in order to
Q: Which view of the objectives of general purpose financial reporting do you regard as the most important? Why?
Q: The IASB assumes that financial information that helps investors and other users of general purpose financial reporting make their investment
Q: Think of the factors that make it difficult for the Board’s IFRS Standards and the FASB’s US GAAP standards to fully converge. Are they mostly
Q: In this chapter we read that, on the one hand, financial reporting standards are meant to prevent capital markets from breaking down due to less
Q: Discuss whether, in essence, accounting is law based or economics based.
Q: If accounting is culture based and national, indeed, local cultures are different, international harmonization will obviously be impossible. Discuss.
Q: Positive research is a necessary starting point on the road to normative thinking, but it can never be enough by itself. Discuss.
Q: (a) Outline Fisher’s thinking on the concept of income.(b) Outline Hicks’s thinking on this topic.(c) Relate and compare the two.
Q: What do CPPP adjustments do and how are they calculated?
Q: Are general indices more or less useful in financial reporting than specific price changes?
Q: Current purchasing power adjustments are simple to apply, but hard to explain and interpret. Discuss.
Q: What is ‘fair value’? Is it a good idea?
Q: Investors need an up-to-date forward-looking indication of annual performance, implying a focus on the income statement, and lenders need an
Q: In the end, for most practical purposes, historical cost is best. Discuss.
Q: Look at the consolidated financial statements of Philips for 2015. Search online for the financial statements of Philips. Find the note for financial
Q: Consider Agency Theory, Stewardship Theory and Stakeholder Theory. Which theory do you think best describes the problems of corporate governance and
Q: Appraise the development of corporate governance in meeting the needs of business and its stakeholders in the twenty-first century in your own
Q: Appraise the relationship between corporate scandals and corporate governance regulation and codes of practice.
Q: ‘While La Porta et al.’s categorization of legal families ... suggests that there should be little difference between the UK and the US, the US
Q: Appraise the harmonization of corporate governance regulation across the EU.
Q: Identify and discuss at least four reasons why corporations should take CSR reporting seriously.
Q: Freeman’s (1984) concept of strategic stakeholder management probably formed the basis for Stakeholder Theory in corporate governance. Explain in
Q: Socially responsible investors apply positive and/or negative screening based on values and performance criteria. What kind of criteria would you
Q: Map the core subjects and the principles of social responsibility of the GRI and IIRC frameworks onto the UN Global Compact’s ten principles. In
Q: Some people think that the term ‘business ethics’ is an oxymoron. What do you think and why?
Q: The accounting profession serves the private interests of the profession, the private interests of clients, credit grantors, employers, investors,
Q: According to the IESBA Code of Ethics, integrity is one of the main principles that accountants must apply in order to serve the public interest. For
Q: Consider the threats to adherence to the principles of the IESBA Code of Ethics in relation to each of the ethical principles of the IESBA Code of
Q: Consider how the threat of self-interest relates to the threat of advocacy, and how the threat of familiarity might lead to the threat of advocacy.
Q: Amy is a senior financial accountant for a large manufacturing company listed on the stock exchange. In her professional capacity she has learnt that
Q: On 1 January 20X5 Company A commenced the construction of a new office building. The office building was completed on 31 December 20X5. To fund the
Q: What are fixed (non-current) assets?
Q: Should land be allowed or required to be revalued?
Q: Due to rising property prices, Downing decided to revalue its land and buildings on 1 April 20X5 to their market value. On 1 April 20X5, prior to the
Q: Kayte operates in the shipping industry and owns vessels for transportation. Kayte’s vessels constitute a material part of its total assets. The
Q: (i) Discuss the arguments for and against the capitalization of borrowing costs as part of the cost of an asset.(ii) On 1 April 20X2 Webster
Q: Minco often sponsors professional tennis players in an attempt to improve its brand image. At the moment, it has a three-year agreement with a tennis
Q: Aphrodite has a year end of 31 December and operates a factory which makes computer chips for mobile phones. It purchased a machine on 1 July 20X3. A
Q: During 20X9 the following inventory of XYZ was acquired and used by Degrees.There was no opening inventory of XYZ.Required: Using the FIFO
Q: Darlatt has built an offshore wind farm with the purpose of testing the efficiency of its prototype wind turbines. Darlatt has applied to the
Q: On 1 December 20X2, Suntory acquired a trademark, Golfo, for a line of golf clothing for $3 million. Initially, Suntory expected to continue
Q: Robby purchased plant, property and equipment (PPE) for $10 million on 1 June 20X9. It has an expected useful life of 20 years and is depreciated
Q: At 30 November 20X3, Joey carried a property in its statement of financial position at its revalued amount of $14 million in accordance with IAS 16
Q: Green Change is preparing its financial statements for the year ended 28 March 20X7. On 24 March 20X7, at their meeting, the board of directors
Q: From the perspective of a lessor, explain the theoretical distinction between finance leases and operating leases.
Q: On 1 January 20X8, a lessee acquires new equipment, with a fair value of £730,000, by entering into a ten-year lease. Lease payments are £90,000
Q: Access Point acquired an asset under a finance lease. The fair value of the asset was £440,000 and it is estimated that the residual value after 5
Q: Critically appraise the different cost assumptions underlying the valuation of closing inventory.
Q: (i) Coatmin is a government-controlled bank. Coatmin was taken over by the government during the recent financial crisis. At the start of the
Q: Ethan, a public limited company, develops, operates and sells investment properties. Ethan wishes to apply the fair value option rules of IFRS 9
Q: The directors of Lizzer, a public limited company, have read various reports on excessive disclosure in the annual report. They have decided to take
Q: Diamond is looking at ways that it may improve its liquidity. One option is to sell some of its trade receivables to a debt factor. The directors are
Q: Useful information is provided to users by restricting the definition of revenue to that arising from ordinary activities only. Discuss.
Q: Previous revenue recognition requirements under IAS 18 were in need of improvement. Discuss.
Q: Entity A sells medical devices to the healthcare sector. It operates in a number of European countries. On 1 January 20X6, Entity A signed an
Q: Entity A manufactures and sells electronic goods. One particular product, Product X, is sold with a six-month manufacturer’s warranty. Entity A
Q: Entity A sells a range of scooters. When purchasing a scooter, a customer can also purchase an extended warranty. The extended warranty takes effect
Q: Mighty IT Co provides hardware, software and IT services to small business customers. Mighty IT Co has developed an accounting software package. The
Q: Explain the terms: (i) Big bath accounting and (ii) Profit smoothing. Give an illustration of each.
Q: Blackcutt owns a warehouse. Chemco has leased the warehouse from Blackcutt and is using it as a storage facility for chemicals. The national
Q: Verge, a public limited company, operates local and inter-city trains. In February 20X2, an inter-city train did what appeared to be superficial

Join SolutionInn Study Help for

2 Million+ Textbook Solutions

Learn the step-by-step answers to your textbook problems, just enter our Solution Library containing more than 2 Million+ textbooks solutions and help guides from over 1300 courses.

24/7 Online Tutors

Tune up your concepts by asking our tutors any time around the clock and get prompt responses.

Start Membership