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Which of the following journals records the subsequent measurement of this financial instrument at 31 December 20X3?
On1 September 20X3, GH purchased 200,000 $1 equity shares in QR for $1.20 each and classified this investment as held for trading. GH paid a 1% transaction fee to its broker on this transaction. QR's equity shares had a fair value of $1.35 each on 31 December 20X3. Which of...
What is the gain on disposal to be recognised in the consolidated statement of profit or loss of KL?
On 1 January 20X1 KL acquired 75% of the equity shares of PQ. Goodwill arising on the acquisition was $480,000. On 31 December 20X3 KL sold the full investment of PQ to XY Group for $2,000,000. On this date the net assets of PQ were $1,340,000 and the non-controlling interests...
Information from the financial statements of an entity for the year to 31 December 20X5:
Information from the financial statements of an entity for the year to 31 December 20X5: The gearing ratio calculated as debt/equity and interest cover are:A . gearing of 15% and interest cover of 6.B . gearing of 16% and interest cover of 6.C . gearing of 15% and interest cover...
Which of the following statements is true?
W and Y are very similar entities with the same level of profit before interest and tax. However, W has gearing of 95% and Y has gearing of 30%. Which of the following statements is true?A . Investing in W carries a higher level of risk than investing inC ....
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CORRECT TEXT ST acquired 80% of the equity shares of AB on 1 January 20X7. AB acquired 60% of the equity shares of UV on 1 January 20X8. Profit for the year ended 31 December 20X9 for AB is $160,000 and for UV is $100,000. Calculate the non-controlling interest figure...
This would be used as an appropriate discount factor to assess which of the following significantprojects?
FG has a weighted average cost of capital of 12% based on its existing: • level of gearing of 30% (measured as debt/(debt + equity)); and • business operations. This would be used as an appropriate discount factor to assess which of the following significantprojects?A . A project in an...
Which accounting treatment should BC adopt?
BC are currently seeking to establish an accounting policy for a particular type of transaction. There are four alternative ways in which this transaction can be treated. Each treatment will have a different outcome on the financial statements as follows: • Treatment one means that the financial statements will be...
What is the operating cycle of DEF at 31 December 20X1?
CORRECT TEXT The following information has been extracted from the financial records of DEF for the year ended 31 December 20X2. What is the operating cycle of DEF at 31 December 20X1? Assume there are 365 days in the year. All workings should be rounded to whole days. Give your...
Which of the following journals records the subsequent measurement of this investment at 31 December 20X0?
CORRECT TEXT KL acquired 2 million $1 equity shares in MN on 18 July 20X0 for $1.65 a share and classified this investment as available for sale (AFS) in accordance with IAS 39 Financial instruments: Recognition and Measurement. KL paid a 0.5% transaction fee to its broker on this transaction....
Which of the following is the correct impact in GH's statement of financial position at 31 December 20X8 in respect of deferred tax?
On 1 January 20X7 GH purchased plant and equipment at a cost of $400,000. The temporary differences in respect of this plant and equipment at 31 December 20X7 and 20X8 have been calculated as follows: Assume that there are no other temporary differences in the periods and that the corporate...
