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Which of the following would have contributed to the movements in these ratios?
Ratios calculated from the financial statements of ST Group for the years ended 31 August 20X7 and 20X6 are as follows: Which of the following would have contributed to the movements in these ratios?A . During 20X7 ST Group acquired an associate which made a relatively small profit for the...
What is the correct accounting treatment for these two items in HJ's financial statements?
HJ is currently in dispute with an employee, who is claiming $400,000 in a legal case against them. HJ's legal advisors have stated that it is probable that they will lose the case and will have to pay the amount claimed. Also, HJ are claiming $250,000 from a supplier of...
AB acquired its one subsidiary, CD, on 1 January 20X1. At this date the fair value of CD's property, plant and equipment was found to be $40 million higher than its carrying value. The relevant items had a remaining estimated useful life of 10 years from the date of acquisition.
AB acquired its one subsidiary, CD, on 1 January 20X1. At this date the fair value of CD's property, plant and equipment was found to be $40 million higher than its carrying value. The relevant items had a remaining estimated useful life of 10 years from the date of acquisition....
Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it prepared its financial statements to 31 December 20X9?
AB acquired a financial investment on 1 January 20X9, incurring $5,000 related agency fees. AB initially classified the investment as held for trading, in accordance with IAS 32 Financial Instruments: Presentation. Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it...
Which of the following options provides a representation of how the non controlling interest in FG is measured in CD's consolidated statement of financial position at 31 December 20X8?
Which of the following options provides a representation of how the non controlling interest in FG is measured in CD's consolidated statement of financial position at 31 December 20X8?A . • FV of NCI at acquisition; plus • NCI's share of post acquisition reserves of FG; plus • NCI's share...
Which of the following statements taken individually would limit the usefulness of the comparison of the return on capital employed ratio between the two entities?
AB and CD are competitors supplying components to the car manufacturing industry. AB operates in Country X and CD operates in Country Y. Both entities were incorporated on the same day, are the same size and prepare financial statements to 31 March each year using international accounting standards. Which of...
The following information relates to DEF for the year ended 31 December 20X7:
The following information relates to DEF for the year ended 31 December 20X7: • Property, plant and equipment has a carrying value of $3,500,000 and a tax written down value of $2,500,000. • There are unused tax losses to carry forward of $1,250,000. These tax losses have arisendue topoor trading...
CORRECT TEXT
CORRECT TEXT EF has redeemable 10% bonds which are currently trading at $94.00 for each $100 of nominal value. Thebondscan be redeemed at par in five years' time. The corporate income tax rate is 22%. The present value of the cash flows associated with $100 nominal value of these bonds...
What is meant by the term "a placing of ordinary shares"?
What is meant by the term "a placing of ordinary shares"?A . Selling new ordinary shares to a financial institution on a pre-arranged basis.B . Selling new ordinary shares directly to the public.C . Selling existing ordinary shares to new investors through a stock exchange.D . Selling new ordinary shares...
Which of the following statements about the use of a bank loan in this situation is true?
JK is seeking to raise finance for a project and the directors would prefer to take out a fixed rate bank loan repayable over the next 5 years. The project will increase the profit of JK even after taking into account the additional interest costs. Which of the following statements...
