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Recognition and Measurement?
Which THREE of the following statements are true in relation to financial assets designated as fair value through profit or loss under IAS 39 Financial Instruments: Recognition and Measurement?A . Shares in another entity held for short term trading purposes fall within this category.B . Transaction costs in relation to...
What is the value of equity to be recognised in YZ's statement of financial position as at 31 December 20X5?
CORRECT TEXT YZ issued $100,000 6% convertible bonds at par on 1 January 20X5. The bondholders have the option to convert into equity shares in 3 years' time or redeem at par for cash on the same date. Interest is paid annually in arrears and bonds issued by similar entities...
What is VW's interest cover for the year ended 30 September 20X7?
The consolidated statement of profit or loss for VW for the year ended 30 September 20X7 includes the following: What is VW's interest cover for the year ended 30 September 20X7?A . 4.5B . 3.3C . 4.1D . 5.1View AnswerAnswer: A
What is the earnings per share for the year ended 31 December 20X4?
On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4 JK issued 600,000 ordinary shares at the market value of $2.50 a share. For the financial year ended 31 December 20X4 the statement of profit or loss shows profit before tax of $625,000 and profit...
Which of the following transactions individually would achieve this?
JKL measure gearing as debt:equity, based on book values. At 31 December 20X5 the ratio is 2:3 and JKL would like this to be 2:5. Which of the following transactions individually would achieve this?A . Bonus issue from the share premium account.B . Revaluation of investment property to an increased...
A group presents its financial statements in A$.
A group presents its financial statements in A$. The goodwill of its only foreign subsidiary was measured at B$100,000 at acquisition. There have been no impairments to this goodwill. Exchange rates (where A$/B$ is the number of B$'s to each A$) are as follows: The value of goodwill to be...
CORRECT TEXT
CORRECT TEXT LK acquired 100% of the equity shares of TU on 1 January 20X4. LK disposed of 60% of TU for £2,400,000 on 30 September 20X4. The sale proceeds reflected the fair value of TU's shares on that date. The remaining 40% shareholding gave LK the ability to exercise...
From the information provided, which of the following ratios would be reliably comparable for AB andCD?
AB and CD are separate entities that prepare financial statements to 31 May using international accounting standards. AB and CD provide technical support services to the financial services industry and operate in the same country. The financial statements are identical except for the following: • AB purchased all operating equipment,...
If considered individually, which of the following would limit the usefulness of these ratios in assessing the comparative financial performances of PQ and WX?
PQ and WX are similar sized entities and operate in the same industry within Country X. Both operate from a single warehouse and have similar levels of non current asset resources. The following ratios have been calculated at 31 October 20X8: If considered individually, which of the following would limit...
Which TWO of the following statements about bonds and their issue are true?
Which TWO of the following statements about bonds and their issue are true?A . Credit rating agencies assign risk categories to bond issues.B . Bonds are a form of loan capital, traded on stock exchanges.C . Bonds are a risk-free form of investing because they will always be repaid.D ....
