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IAS & IFRS Standards Overview > Awkward Double Entry Last Minute > Flashcards

Awkward Double Entry Last Minute Flashcards

1
Q

How is disposal on a factory treated?

A

Proceeds - CV. credit other income

carrying amonut deducted from asset

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2
Q

Significant financing component double entry?

A

Discounted amount (credit revenue)

Income (%) (credit income)

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3
Q

Loss in FV of investment when FVTOCI?

A

Debit OCI

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4
Q

Prior period and current period correction?

A

Debit operating expenses
Debit prior period

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5
Q

Initial, subsequent and settlement transaciton for foreign exchange? (NCA)

A

Debit purchases
Credit payables

Debit inventory
Credit payables
Credit SPL (gain)

Debit payables
Credit bank
Credit SPL (gain)

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6
Q

Fully subscribed rights issue of 1 for 4 at $1.20 each?

A

(50000/0.2) * 1/5 (as it’s fully subscribed it’s 5) = 20m shares

Share Capital: 20m * 50c
Share premium: 20m * 70c

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7
Q

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?

A

(56000/0.25) * 5/7 = 160000

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8
Q

Malta makes a profit at 20% on the cost of all goods sold to Woolwich

A

20/120

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9
Q

Keyword for obligation?

A

No ability to avoid

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10
Q

When debit expense?

A

Credit asset OR Credit liability

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11
Q

Does disposal affect comparability?

A

Yes

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12
Q

Restating operating expenses?

A

Debit is reduced
Credit is added

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13
Q

Where is PFY and dividend paid?

A

Recorded in retained earnings column

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14
Q

Tax refund?

A

Deducted in working

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15
Q

Transfer to RE?

A

Debit: Revaluation
Credit: RE

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16
Q

Bank interest?

A

Included in finance costs

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17
Q

Is revaluation surplus included in profit in SPL?

A

No, it is included in comprehensive income. Won’t be included in RE figure

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18
Q

Negative amount in current tax working?

A

Added in SPL

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19
Q

Positive amount in current tax working?

A

Deducted in SPL

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20
Q

Finance cost for convertible loan note

A

Effective interest - coupon interest

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21
Q

PURP in consolidation working?

A

Negative like FVA

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22
Q

FVA adjustment consolidation

A

Debit PPE
Credit goodwill

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23
Q

PURP consolidation

A

Debit goodwill
Credit inventory

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24
Q

NCI in CSPL?

A

Profit for the year is first on the statement. If NCI hasn’t been calculated in CSFP

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25
Q

Revaluation surplus?

A

Positive in NVA working if included in TB.

Parent revaluation surplus is figure in CSFP

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26
Q

Impairment in investment in associate?

A

Credit Investment in associate
Debit RE

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27
Q

Where is deferred consideraiton in CSFP?

A

In current liability

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28
Q

FVA double entry consolidation?

A

Debit PPE
Credit Goodwill

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29
Q

Reference to voting shares calculation when shares carrying 10 votes each?

A

Number of votes * shares

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30
Q

Initial lease payment?

A

Is subtracted from the value of the lease

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31
Q

Are cumulative fair value gains recognised in OCI

A

No

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32
Q

FVTPL (gain)?

A

Credit gain
Debit investment

Amount at year end is amount is FS

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33
Q

Costs of sales when markup of 30% is included?

A

Revenue / 1.3

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34
Q

Dividend paid?

A

Debit RE

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35
Q

What does progress towards completion apply to?

A

Revenue

36
Q

Receive payment?

A

Amount which will be received in financial statements

37
Q

Broker fees?

A

Added to the initial liability

38
Q

Servicing element calculation for 3 years and gross profit margin of 40% for three years?

A

1.2 * (2/0.6) = 4

39
Q

Fully subscribed rights issue at start of the year?

A

Deducted to get the number of shares

40
Q

Repurchase agreement revenue recognition?

A

Revenue received + finance costs

41
Q

Double entry for sale and leaseback?

A

Debit Proceeds in Bank
Debit ROU Asset (proportion of asset kept)
Credit PVFLP in lease liability
Credit Carrying amount
Debit/Credit SPL

42
Q

Proportion of asset kept and proportion of asset that is sold calculate for SPL?

A

(100% - PV/FV) * (FV - CV)

43
Q

Right of use asset calculation for leases?

A

PV* (CV/FV)

44
Q

Treatment of provision in CSFP

A

Treated the same as a FV adjustment

45
Q

Deferred income balance?

A

Carrying amonut of grant - depreciation

46
Q

What represents finance income/finance charge?

A

Effective rate of interest

47
Q

Unrecognised internally generated brand name in consolidation?

A

Put in intangible assets

48
Q

FV investment gain where in working?

A

Credit in RE

49
Q

Professional fees?

A

Debit RE

50
Q

Intangible asset valued in consolidation?

A

Treated as a FVA

51
Q

What is included in a disposal working in consolidation?

A

NCI, net assets, goodwill

52
Q

Get cost of investment if not included?

A

Share for share working

53
Q

Profit on disposal for discontinued operation?

A

Added in discontinued operation working

54
Q

When to capitalise as an intangible asset?

A

Can be separately distinguished from other operations in the business

55
Q

Revenue reduction in principal vs agent

A

Debit revenue
credit trade payables

56
Q

Finance costs?

A

Finance income - interest

57
Q

Forex gain in NCA?

A

Credit SPL

58
Q

Repurchase agreement?

A

Debit revenue
Credit COS, debit inventory
Debit finance cost, credit in substance loan

59
Q

What must be done to asset held for sale?

A

If it was done midway throught the year, deduct depreciation before the year

60
Q

Substance of a loan in year 2?

A

Year 1 interest + Year 2 interest

61
Q

Does an agent have carrying amount for inventory?

A

No

62
Q

Reversal of provision?

A

Credit SPL

63
Q

Restructuring costs?

A

Not allowed in IFRS 5

64
Q

Profit attributable to ordinary shareholders

A

Ordinary dividend + RE

65
Q

What happens with ordinary dividend?

A

Must always be added back to RE

66
Q

Asset purchased < selling price in repurchasing agreement?

A

It is accounted for as a lease

67
Q

Initial recognition for repurchase agreement and subsequent?

A

Debit Bank
Credit Financial liability (loan)

Debit Financial liability
Credit Revenue

68
Q

Steps to calculate contract with a customer?

A
  1. Contract price
  2. Stand alone price
  3. Get percentage from standalone price
69
Q

Impairment loss on associate?

A

Full amount included

70
Q

When is provision recognised in consolidation?

A

provision has been made by the company to be acquired and costs would be incurred whether or not acquisition goes ahead

71
Q

Cash in transit adjusted for parent?

A

Not recognised

72
Q

George sold goods which had cost $2m to Orwell for $3m. Orwell has not yet sold any of these goods.

What is unrealised profit?

A

3 - 2 = 1

73
Q

What does weighted average borrowing costs exclude?

A

FInancing from speciifc projects

74
Q

WHAT MUST ALWAYS FUCKING PROCEED A FUCKING DISCOUNT?

A

FINANCE COST

75
Q

Interest receivable on a loan elimination in consolidation?

A

Debit investment income
Credit finance cost

76
Q

Share of profit of associate?

A

Apart of investment income

77
Q

What is always fucking included in investment in associate working?

A

Profit for the year

78
Q

Transferred from IAS 40 to IAS 16?

A

Put as non-current asset and then depreciate time apportioned

79
Q

Goodwill consolidation?

A

Always

80
Q

How does consolidation affect comparability?

A

It eliminates intragroup, thereby maknig comparisons harder

81
Q

Get PFY from discontinued operation for consolidated SFP?

A

PFY - (gain/loss on disposal)

82
Q

Profit on disposal IFRS 5 consolidation?

A

credit RE

Proceeds - cost of investment

83
Q

When consolidation says current account?

A

debit payable
credit receivable

84
Q

Revaluation increase in deferred tax working?

A

Positive amount

85
Q

To classify an asset as held for sale?

A

Sale must be highly probable

86
Q

Profit after tax for associate?

A

Recorded as income from associate (credit entry)

IAS & IFRS Standards Overview (73 decks)

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