4 Questions From QB :) Flashcards
Inventories
Valued at the lower of cost vs net realisable value
Revenue
With after sales support, remove the correct amount by pro rating it correctly from the current year’s revenue, then allocate it to either deferred current liability or non current. P
Inventories
In cost of sales opening inventories minus closing baby!!!
Foreign exchange
Trade and other receivables - calculate exchange for year end.
Then
Exchange rate at receive date amount
(Exchange rate at year end amount)
EQUALS
Exchange gain or loss
Exchange gain - take away from admin expenses
Exchange loss - add onto admin expenses
Exchange gain addonto the receivables
Exchange loss take away from the receivables
Redeemable preference shares
Negative - The effective interest rate finance cost P and L.
Redeemable preference shares
Negative lolz Normal interest cost is admin expss.
Redeemable preference shares.
The actual non current liability goes into the non current liability section of the statement of financial position.
Ppe
Straight line on cost
Ppe
Reducing balance is cost - ac dep!!!
Ppe -s.
Revaluation surplus - the additional amount of the depreciation charge should be ADDED to retained earnings.
Ppe - revaluation surplus.
Do the valuation amount - the carrying amount at the date of the valuation.
Take away any additional charge for depreciation.
Ppe - where does the revaluation surplus go equity???
The revaluation surplus goes underthe share capital in the SFP.
Ordinary share capital
Revaluation surplus
Retained earnings
The equity.
Other comprehensive inc.
Profit for the year
Plus revaluation gain (excl.)
Total comprehensive income for the.
Ppe -s.
Held for sale -
Carrying amount less of fair value less costs to sell
Then it gives the impair..
Ppe
Impairment charge goes to the cost of sales.
