2. Fomat Of Finanvicial Statements

Question 1

Break-up basis: Assets value is

Answer 1

Recoverable amount

Question 2

Can immaterial items be aggregated?

Answer 2

Yes

Question 3

When is offsetting allowed?

Answer 3

Required/permitted by another standard

Immaterial aggregates

Question 4

2 formats of P&L

Answer 4

Classification of expenses by:
1. Function
2. Nature

Question 5

Only other comprehensive income tested?

Answer 5

Gain on property revaluation

Question 6

Choice of recognition of PPE

Answer 6

1. Historic cost
   (Cost model)
2. Fair value
   (Revaluation model)

Question 7

Steps to perform property revaluation

Answer 7

1. Increase cost
2. Remove all accum depn
3. CR revaluation surplus

Question 8

Where is the revaluation surplus in the FS?

Answer 8

Equity

Question 9

What is total comprehensive income made up of?

Answer 9

1. Retained earnings (p&l)
2. Revaluation surplus (oci)

Question 10

When is an asset current?

Answer 10

1. Settled within 12m
2. Part of normal operating cycle

Question 11

When is a dividend recognised?

Answer 11

When DECLARED
Not approved

Question 12

What are the TWO places preference shares can be classed as?

Answer 12

1. Dividend
2. (NC) Liability

Question 13

Which shares are classified as liabilities?

Answer 13

1. Recoverable preference shares
2. Any share with a mandatory dividend

Question 14

What else is added to PPE carrying amount in SOCF?

Answer 14

Revaluation

Question 15

How is a UK balance sheet usually presented?

Answer 15

Net assets basis

Question 16

BS: Net assets basis

Answer 16

Fixed assets added to net current assets

Long term liabilities deducted

Question 17

UK GAAP: What can be done if only changes in equity are from:

P&L
Dividends
Corrections
Policy change

Answer 17

Single statement of income and retained earnings
(No separate SOCIE)