- All Exams Instant Download
CORRECT TEXT
CORRECT TEXT XY acquired 75% of the equity shares of CD on 1 January 20X2 for $230,000. On 1 January 20X2 CD had the following balances: XY uses the proportionate share of net assets method to value non controlling interest at acquisition. Calculate the goodwill arising on the acquisition of...
Which of the following is a characteristic of a defined contribution post-employment benefit scheme?
Which of the following is a characteristic of a defined contribution post-employment benefit scheme?A . The amount of the post-employment benefits paid to former employees depends on how well the scheme's investments have performed.B . The employer would make additional contributions into the scheme if the actuary predicted a shortfall...
Which of the following is the value of the impairment loss to be recognised for this asset in accordance with IAS 36 Impairment of Assets?
An asset has the following values: If the asset was sold for its fair value, selling costs of $1,500 would be incurred. Which of the following is the value of the impairment loss to be recognised for this asset in accordance with IAS 36 Impairment of Assets?A . $0B ....
CORRECT TEXT
CORRECT TEXT Statements of financial position as at 31 December 20X8 for JK, LM and PQ are as follows: [1] JK purchased 80% of LM's $1 equity shares on 1 January 20X8 for $260,000 when the retained earnings of JK were $110,000. At that date the non-controlling interest had a...
Which of the following values should be used for the asset in DE's statement of financial position as at 31 December 20X3?
DE purchased an asset on 1 January 20X1 for $60,000 with a useful economic life of six years and a residual value of $3,000. DE uses straight line depreciation for this asset. On 31 December 20X3 the asset has a value in use of $ $28,000 and a fair value...
Which of the following is a feature of a direct tax?
Which of the following is a feature of a direct tax?A . The formal incidence and effective incidence are usually the same.B . It is levied on one part of the economy with the intention that it will be passed on to another.C . It is not levied on the...
Which of the following would be a reason for the movement in the trade receivable days?
The following information relates to ABC. Which of the following would be a reason for the movement in the trade receivable days?A . A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.B . A system of early settlement discount...
Which of the following is a condition that has to be met for an entity to be exempt the requirement to prepare consolidated financial statements?
Which of the following is a condition that has to be met for an entity to be exempt the requirement to prepare consolidated financial statements?A . The parent entity's debt or equity instruments are not traded in a public market.B . The parent entity's equity instruments are only traded in...
What is BB's liability to tax in Country Y in respect of the dividend income received?
Country X charges corporate income tax at the rate of 20% on all income irrespective of whether it is paid out as a dividend. Country Y charges corporate income tax at the rate of 25% on all income. An entity, AA, which is resident in Country X pays a dividend...
What is the revenue figure to be included in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0?
PQ uses the fair value method for non-controlling interest at acquisition. What is the revenue figure to be included in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0?A . $450,000B . $440,000C . $480,000D . $476,000View AnswerAnswer: C
