Awkward Double Entry Last Minute Flashcards
How is disposal on a factory treated?
Proceeds - CV. credit other income
carrying amonut deducted from asset
Significant financing component double entry?
Discounted amount (credit revenue)
Income (%) (credit income)
Loss in FV of investment when FVTOCI?
Debit OCI
Prior period and current period correction?
Debit operating expenses
Debit prior period
Initial, subsequent and settlement transaciton for foreign exchange? (NCA)
Debit purchases
Credit payables
Debit inventory
Credit payables
Credit SPL (gain)
Debit payables
Credit bank
Credit SPL (gain)
Fully subscribed rights issue of 1 for 4 at $1.20 each?
(50000/0.2) * 1/5 (as it’s fully subscribed it’s 5) = 20m shares
Share Capital: 20m * 50c
Share premium: 20m * 70c
On 1 August 20X3, Xtal Co made a fully subscribed rights issue of equity share capital based on two new shares at 60 cents each for every five shares held. The issue has been fully recorded in TB figures
56000 shares at 25 cents each?
(56000/0.25) * 5/7 = 160000
Malta makes a profit at 20% on the cost of all goods sold to Woolwich
20/120
Keyword for obligation?
No ability to avoid
When debit expense?
Credit asset OR Credit liability
Does disposal affect comparability?
Yes
Restating operating expenses?
Debit is reduced
Credit is added
Where is PFY and dividend paid?
Recorded in retained earnings column
Tax refund?
Deducted in working
Transfer to RE?
Debit: Revaluation
Credit: RE
Bank interest?
Included in finance costs
Is revaluation surplus included in profit in SPL?
No, it is included in comprehensive income. Won’t be included in RE figure
Negative amount in current tax working?
Added in SPL
Positive amount in current tax working?
Deducted in SPL
Finance cost for convertible loan note
Effective interest - coupon interest
PURP in consolidation working?
Negative like FVA
FVA adjustment consolidation
Debit PPE
Credit goodwill
PURP consolidation
Debit goodwill
Credit inventory
NCI in CSPL?
Profit for the year is first on the statement. If NCI hasn’t been calculated in CSFP
Revaluation surplus?
Positive in NVA working if included in TB.
Parent revaluation surplus is figure in CSFP
Impairment in investment in associate?
Credit Investment in associate
Debit RE
Where is deferred consideraiton in CSFP?
In current liability
FVA double entry consolidation?
Debit PPE
Credit Goodwill
Reference to voting shares calculation when shares carrying 10 votes each?
Number of votes * shares
Initial lease payment?
Is subtracted from the value of the lease
Are cumulative fair value gains recognised in OCI
No
FVTPL (gain)?
Credit gain
Debit investment
Amount at year end is amount is FS
Costs of sales when markup of 30% is included?
Revenue / 1.3
Dividend paid?
Debit RE
What does progress towards completion apply to?
Revenue
Receive payment?
Amount which will be received in financial statements
Broker fees?
Added to the initial liability
Servicing element calculation for 3 years and gross profit margin of 40% for three years?
1.2 * (2/0.6) = 4
Fully subscribed rights issue at start of the year?
Deducted to get the number of shares
Repurchase agreement revenue recognition?
Revenue received + finance costs
Double entry for sale and leaseback?
Debit Proceeds in Bank
Debit ROU Asset (proportion of asset kept)
Credit PVFLP in lease liability
Credit Carrying amount
Debit/Credit SPL
Proportion of asset kept and proportion of asset that is sold calculate for SPL?
(100% - PV/FV) * (FV - CV)
Right of use asset calculation for leases?
PV* (CV/FV)
Treatment of provision in CSFP
Treated the same as a FV adjustment
Deferred income balance?
Carrying amonut of grant - depreciation
What represents finance income/finance charge?
Effective rate of interest
Unrecognised internally generated brand name in consolidation?
Put in intangible assets
FV investment gain where in working?
Credit in RE
Professional fees?
Debit RE
Intangible asset valued in consolidation?
Treated as a FVA
What is included in a disposal working in consolidation?
NCI, net assets, goodwill
Get cost of investment if not included?
Share for share working
Profit on disposal for discontinued operation?
Added in discontinued operation working
When to capitalise as an intangible asset?
Can be separately distinguished from other operations in the business
Revenue reduction in principal vs agent
Debit revenue
credit trade payables
Finance costs?
Finance income - interest
Forex gain in NCA?
Credit SPL
Repurchase agreement?
Debit revenue
Credit COS, debit inventory
Debit finance cost, credit in substance loan
What must be done to asset held for sale?
If it was done midway throught the year, deduct depreciation before the year
Substance of a loan in year 2?
Year 1 interest + Year 2 interest
Does an agent have carrying amount for inventory?
No
Reversal of provision?
Credit SPL
Restructuring costs?
Not allowed in IFRS 5
Profit attributable to ordinary shareholders
Ordinary dividend + RE
What happens with ordinary dividend?
Must always be added back to RE
Asset purchased < selling price in repurchasing agreement?
It is accounted for as a lease
Initial recognition for repurchase agreement and subsequent?
Debit Bank
Credit Financial liability (loan)
Debit Financial liability
Credit Revenue
Steps to calculate contract with a customer?
- Contract price
- Stand alone price
- Get percentage from standalone price
Impairment loss on associate?
Full amount included
When is provision recognised in consolidation?
provision has been made by the company to be acquired and costs would be incurred whether or not acquisition goes ahead
Cash in transit adjusted for parent?
Not recognised
George sold goods which had cost $2m to Orwell for $3m. Orwell has not yet sold any of these goods.
What is unrealised profit?
3 - 2 = 1
What does weighted average borrowing costs exclude?
FInancing from speciifc projects
WHAT MUST ALWAYS FUCKING PROCEED A FUCKING DISCOUNT?
FINANCE COST
Interest receivable on a loan elimination in consolidation?
Debit investment income
Credit finance cost
Share of profit of associate?
Apart of investment income
What is always fucking included in investment in associate working?
Profit for the year
Transferred from IAS 40 to IAS 16?
Put as non-current asset and then depreciate time apportioned
Goodwill consolidation?
Always
How does consolidation affect comparability?
It eliminates intragroup, thereby maknig comparisons harder
Get PFY from discontinued operation for consolidated SFP?
PFY - (gain/loss on disposal)
Profit on disposal IFRS 5 consolidation?
credit RE
Proceeds - cost of investment
When consolidation says current account?
debit payable
credit receivable
Revaluation increase in deferred tax working?
Positive amount
To classify an asset as held for sale?
Sale must be highly probable
Profit after tax for associate?
Recorded as income from associate (credit entry)
