Explain briefly the purpose of preparing group accounts and the concepts underlying their preparation. What useful information does it provide to the users of published financial statements (Max word count: 250 words). (10 marks)

Explain with justification why equity accounting is used for investments in associate instead of being shown as an ordinary investment in shares (Max word count:100 words). (5 marks)

FRS 112 requires companies to use the Full Provision (Liability) method for Deferred Tax. Discuss briefly jf the Full Provision method is inconsistent with IFRS Conceptual Framework for Financial Reporting (Max word count: 300 words). (15 marks)

Answer rating: 100% (QA)

Solution Answer to A Purpose of Preparing Group Accounts The purpose of consolidated statements is to present primarily for the benefit of the stakeho... View the full answer