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When accounting for a finance lease under IAS 17 Leases, which TWO of the following are recognised in the statement of profit or loss?
When accounting for a finance lease under IAS 17 Leases, which TWO of the following are recognised in the statement of profit or loss?A . Finance cost element of the lease paymentsB . Depreciation of the leased assetC . Lease payments paidD . Lease payments payableE . Capital repayment element...
The characteristics of this instrument taken as a whole indicates that it would be classifed as which of the following?
RS has issued an instrument with a nominal value of $1 million, at a discount of 2.5%, and a coupon rate of 6%. The terms of the issue are that the instrument must either be redeemed at par, at the option of the holder, in three years' time, or alternatively...
What is the diluted earnings per share for the year ended 31 October 20X7?
As at 31 October 20X7 TU's financial statements show the entity having profit after tax of $600,000 and 900,000 $1 ordinary shares in issue. There have been no issues of shares during the year. At 31 October 20X7 TU have 300,000 share options in issue, which allow the holders to...
What is the value of retained earnings that will be presented in the consolidated statement of financial position of ST as at 31 December 20X5?
ST acquired 75% of the 2 million $1 equity shares of CD on 1 January 20X3, when the retained earnings of CD were S3,550,000. CD has no other reserves. ST paid $5,600,000 for the shares in CD and the non controlling interest was measured at its fair value of S1,400,000...
Taking each statement individually, which of the following explains the movement in the gross profit margin from 20X4 to 20X5 as calculated by the analysts?
Taking each statement individually, which of the following explains the movement in the gross profit margin from 20X4 to 20X5 as calculated by the analysts?A . Increase in the levels of closing inventory of raw materials.B . Reduction in the cost of raw materials NOT passed onto customers.C . Prompt...
Which of the following independent actions could the directors take during 20X9 to achieve this?
The directors of AB want to reduce the entity's gearing ratio in the year to 31 December 20X9. Which of the following independent actions could the directors take during 20X9 to achieve this?A . Recognise the valuation surplus on AB's property, plant and equipment.B . Issue cumulative preference shares.C ....
Which of the following ratios would not be comparable as a result of the acquisition of AB?
LM is preparing its consolidated financial statements for the year ended 30 April 20X5. During the year LM acquired 30% of the equity shares of AB giving it significant influence over AB. LM conducted ratio analysis comparing the financial performance of the group for 30 April 20X4 and 20X5. Which...
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...
Which of the following would explain why the yield to maturity is lower than the coupon?
ST has in issue unquoted 7% debentures which were issuedat par and are redeemable in 1 year's time. These debentures cannot be traded. The yield to maturity on these debentures has been calculated at 5%. Which of the following would explain why the yield to maturity is lower than the...
Which of the following actions would be most likely to improve an entity's gross profit margin?
Which of the following actions would be most likely to improve an entity's gross profit margin?A . Negotiating with trade suppliers for a bulk purchase discountB . Offering increased credit to customersC . Reducing administrative expenses by 10%D . Writing down the value of obsolete inventoriesView AnswerAnswer: A
